Toronto cuts financial incentives for Tesla vehicles used as taxis, ride shares amid U.S. trade tensions

03/23/2025 / By Laura Harris

Toronto has discontinued financial incentives for Tesla vehicles used as taxis or ride-sharing vehicles, effective March 1, 2024, due to escalating trade tensions between Canada and the U.S. Other EV brands will continue to receive incentives until 2029.
The exclusion of Tesla is linked to broader trade disputes, particularly involving Tesla CEO Elon Musk’s alignment with former U.S. President Donald Trump, who has imposed tariffs on Canadian products and made controversial statements about Canada.
Mayor Olivia Chow framed the decision as a symbolic response to Musk’s ties to Trump and U.S. policies, emphasizing that Tesla buyers can still purchase vehicles but without taxpayer-funded subsidies.
Other Canadian leaders, such as Ontario Premier Doug Ford and Alberta Premier Danielle Smith, have vowed to take retaliatory actions against U.S. policies, including potential export charges on electricity and challenges to tariffs on Canadian oil and gas.
The ongoing trade tensions and retaliatory measures highlight the strain on the historically strong Canada-U.S. relationship, with Canadian leaders urging U.S. lawmakers and voters to oppose Trump’s policies and hold the U.S. administration accountable.

Toronto will no longer provide financial incentives for Tesla vehicles purchased as taxis or ride-sharing vehicles due to ongoing and escalating trade tensions with the United States.

The city has been offering reduced licensing and renewal fees for electric vehicles (EVs) used as vehicles for hire, such as taxis and ride-shares, as part of its efforts to reduce emissions and promote sustainable transportation. These incentives are set to remain in place until the end of 2029 for other EV brands. However, Tesla vehicles will no longer qualify for the program.

“The vehicles for hire, like taxis, will have to find a different kind of car,” Mayor Olivia Chow said in a news conference on March 17, confirming that Tesla no longer qualified for the program since March 1. “There are other electric cars they could purchase.” (Related: Trump to purchase a new Tesla Model S in support of Musk following a 15% stock price drop.)

Chow also confirmed that the exclusion of Tesla vehicles is tied to broader trade disputes between Canada and the U.S., particularly involving Tesla CEO Elon Musk, who is a top adviser to U.S. President Donald Trump. Trump has previously called for Canada’s annexation and imposed tariffs on Canadian products, which has strained relations between the two nations.

“We have certainly said that if you want to buy a Tesla, go ahead, but don’t count on taxpayer money to subsidize it,” Chow said. She emphasized that the decision was a symbolic gesture to respond to Musk’s alignment with Trump and the U.S. administration’s policies.

Canadian premiers vow to take retaliatory actions against the United States

Some Canadian premiers also vowed to take retaliatory actions against the United States.

For instance, earlier in March, Ontario Premier Doug Ford threatened to impose an export charge on electricity sold to the U.S., a move that could disrupt energy supplies to more than a million American households. Ford declared his readiness to “fight like never before” and suggested additional countermeasures, including the possibility of cutting off power exports altogether.

He stressed the need to use every available tool to push back against what he views as the erosion of the historically strong Canada-U.S. relationship under the Trump administration.

Ford also called on U.S. lawmakers, particularly Republicans, to oppose Trump’s policies and urged American voters to hold the president accountable in the upcoming midterm elections.

Similarly, Alberta Premier Danielle Smith voiced deep disappointment and concern over the decision of Trump to impose tariffs on Canadian oil and gas, labeling it a betrayal and an illegal action that her province plans to challenge. She warned that even a 10 percent tariff would inevitably drive up oil and gas prices for American consumers, despite Trump’s claims to the contrary.

Smith highlighted the critical role Alberta’s heavy crude plays in supplying U.S. Midwest refineries, which cannot produce enough of this resource domestically to meet demand. As Canada is the largest foreign supplier of oil to the U.S., she argued that American consumers will ultimately bear the brunt of these tariffs through higher prices at the pump.

Visit RoboCars.news for more news on electric vehicles.

Watch this video from John Williams discussing the massive troubles affecting Tesla amid the collapse of America’s auto industry.

This video is from the channel ThisIsJohnWilliams on Brighteon.com.