Canada imposes dual sanctions on Tesla, revoking electric vehicle subsidy eligibility and freezing payments.

According to media reports on Wednesday, the Canadian government has recently excluded Tesla from the list of beneficiaries of the federal electric vehicle subsidy program (iZEV) and frozen subsidy applications that have been submitted but not yet issued. This rare move comes within 72 hours of the Trump administration's announcement of a 10% tariff on Canadian aluminum and is seen as Canada's targeted countermeasure in the new energy sector.

The specific content of the sanctions includes freezing financial subsidies.

Canada has removed Model 3/Y and other popular models from the iZEV program (originally eligible for a 5,000 CAD subsidy), effective immediately. Additionally, the processing of 2,876 Tesla vehicle purchase subsidy applications that have been submitted will be put on hold.

In addition, the Canadian government also announced that the priority subsidy list will only retain brands such as Ford and General Motors that have committed to setting up factories in Canada.

Quebec cancels provincial subsidies simultaneously. The market share of Tesla in the province reaches 39% of the electric vehicle market.

The timing of Canada's adoption of the above countermeasures coincides with the third working day after the U.S. Department of Commerce announced the effectiveness of tariffs on Canadian aluminum.

Tesla is the only major electric vehicle manufacturer in North America that has not set up a factory in Canada.