Toronto excludes Tesla from EV incentive due to US trade war

Toronto is no longer providing financial incentives for Tesla vehicles purchased as taxis or ride shares due to trade tensions with the United States, the city's mayor, Olivia Chow, said on Monday.

The city is promoting the adoption of electric vehicles purchased as vehicles for hire by giving drivers and owners a reduction in licensing fees and renewal fees until the end of 2029, to help it lower emissions.

But as of March 1, Tesla vehicles are no longer eligible for the incentives, Chow said at a news conference.

"The vehicles for hire, like taxis, will have to find a different kind of car," she told Reuters after the news conference. "There are other electric cars they could purchase."

The exclusion will continue until trade issues with the US are resolved, she said.

Tesla did not immediately respond to a request for comment.

Chow told Reuters that the decision was made to target and respond to Tesla CEO Elon Musk, who is a top adviser to US President Donald Trump. Trump has called for Canada's annexation and imposed tariffs on Canadian products, angering Canadians.

"We have certainly said that if you want to buy a Tesla, go ahead, but don't count on taxpayer money to subsidize it," she said.

Chow said the financial impact of the move would not be large.

"It's more symbolic," she said.