Amidst US-Canada Trade War, Toronto Excludes Tesla From EV Incentives
Tesla which once shaped Canada’s EV ecosystem now excluded from financial subsidies as tensions grow between the two nations.
Published Mar 18, 2025

Table of Contents
- Toronto Excludes Tesla
- Trade War and Tesla Boycott
Tesla EVs have been an important part of Toronto, Canada’s most populous city. However, the ongoing feud between the U.S. and Canada has led many Canadians to boycott American products. Adding fuel to the fire is the worldwide protests going on against President Trump’s closest ally Elon Musk.
The protests have led to the vandalization of Tesla EVs with many owners either trading it in or putting up stickers to denounce Musk. Canada however has taken a bold step as Toronto City will no longer provide any financial subsidies.
Toronto Excludes Tesla
Tesla has played a significant role in shaping up the EV ecosystem in Canada and Toronto specifically. The country has solidified its presence as a destination for electric-vehicle industry investments, in which Tesla had a huge contribution. However, the recent feud has now compelled the Canadians to take harsh steps against the EV manufacturer.
Mayor Olivia Chow said on Monday “We are giving incentives for people to migrate into electric cars, except we will stop giving financial incentives to Tesla,” Chow said, noting that there were “other electric cars” around.
If you want to buy Tesla, go ahead, but don’t count on taxpayer money to subsidize it.
In the conference, Chow also mentioned that the exclusion will continue until trade tensions with the U.S. are resolved.
Trade War and Tesla Boycott
The harsh decision to exclude Tesla from financial incentives comes as a result of the ongoing trade war with the US. After American president Donald Trump imposed a 25% trade tariff against Canada, the Canadians retaliated by increasing import duties and other measures against the U.S. Trump had already enraged the Canadians after he proposed Canada become America’s 51st state.
Trump’s ally Elon Musk is not having a pleasant time either. As the billionaire serves as chief of DOGE (Department of Government Efficiency) under the Trump administration, Musk has been receiving criticism for his involvement with federal funding. His meddling in the Russia-Ukraine war along with doing an alleged Nazi salute has only made matters worse.
As a result, many people in North America and Europe are protesting Musk and his company Tesla by boycotting the EVs and in a few extreme cases, vandalising the cars and the dealerships. The outrage has led to Tesla stocks dropping significantly and Trump stepping in to promote Tesla EVs as Musk finds it challenging to handle his businesses.
Also Read:
- Angel Investor Ditches Her Tesla To Protest Against Elon Musk
- Elon Musk Launches Appeal To Restore $56 Billion Tesla Payday
- Elon Musk Sparks Diplomatic Row Over Starlink’s Role In Ukraine War
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