Toronto City Council Limits Tesla Subsidies Amid Trade Tensions
Toronto's city council has decided to restrict new Tesla vehicles from receiving permits and licences under the Zero Emission Grant Program starting March 1. This initiative is aimed at promoting electric vehicle use among taxi and limousine operators. The decision, championed by Mayor Olivia Chow, comes in response to ongoing economic pressures resulting from a trade war instigated by U.S. President Donald Trump.
The Zero Emission Grant Program encourages taxicab and limousine owners to switch to zero-emission vehicles by providing financial incentives, but it will not apply to Tesla cars for the time being. Chow, addressing the council, highlighted the need to send a message to the U.S. amidst the trade conflict.
Chow noted the limits of municipal action in tackling U.S. trade policies, as significant measures would require provincial and federal intervention. Yet, she emphasized the city's responsibility to respond to what she described as Trump's "senseless" trade war.
Although new Tesla owners will not benefit from city subsidies, Chow clarified that the city will still support other electric vehicle owners. Currently, there are 21 vehicle-for-hire operators using zero-emission vehicles under the program, including Santa-provided reductions for nine Tesla owners, which reflects less financial impact than initially presented.
City council members have discussed launching a 'Buy Local, Buy Canadian' campaign to further emphasize local purchasing. While there is consensus on promoting electric vehicles, the confusion surrounding the Tesla motion points to ongoing discussions about municipal authority over automotive subsidies.
The city remains committed to reducing greenhouse gas emissions, with a goal of transitioning the vehicle-for-hire sector to all zero-emission vehicles by 2030.
