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Canada Freezes Tesla EV Rebates

Canada has frozen all electric vehicle rebate payments for Tesla (Nasdaq: TSLA) and banned the American automaker from future incentive programs, Transport Minister Chrystia Freeland said on Tuesday, citing US tariffs imposed by President Donald Trump.

The government has halted approximately C$43 million ($30 million) in rebate payments until each claim is individually investigated and verified as legitimate, Freeland said in a statement.

“No payments will be made until we are confident that the claims are valid,” Freeland said. “I also directed my department to change the eligibility criteria for future iZEV programs to ensure that Tesla vehicles will not be eligible for incentives so long as the illegitimate and illegal US tariffs are imposed against Canada.”

You can read more on the matter here.

What’s going on?

• Poilievre Blasts Trump Tariffs, Announces Plan to Boost Canadian Investments (theDeepDive)

• Canada’s GDP expanded by 0.4% in January as tariff impact looms (Globe)

• Canada-US Travel Collapses As Trade Tensions Rise (theDeepDive)

• Trump Pardons Nikola Founder Trevor Milton (WSJ)

• Trump Tariffs Hit Steel Sector Jobs on Both Sides of Border (theDeepDive)

• Economists Slash Canada Growth Forecasts as Trade War Strikes (Bloomberg)

• Trade Tensions Rev into High Gear as Trump Imposes 25% Auto Tariff (theDeepDive)

• Powerful Myanmar earthquake kills dozens, also hits Thailand (Reuters)

• ‘Rent-A-Cops for CEOs’: New Report Reveals FBI Spying On Online Critics of Business Leaders (theDeepDive)

• FDIC says banks can engage in crypto activities without prior approval (Reuters)

• Kremlin Sets Sanctions Relief as Condition for Black Sea Deal Implementation (theDeepDive)

What’s the latest?

• Economy: Canada’s economy grew 0.4% in January, driven by a 1.1% surge in goods-producing industries, particularly oil, gas, mining, and construction. This was an improvement from December’s 0.3% growth, but early estimates show little to no growth in February. Retail trade slowed after Ottawa’s sales tax holiday ended, and harsh winter weather likely impacted February’s performance. Economists expect U.S. tariffs on vehicles to negatively affect GDP starting in March and into Q2.

• TSX: Canada’s S&P/TSX composite index dropped 261.77 points to 24,899.29, while U.S. markets also plunged, with the Dow Jones down 525.75 points to 41,773.95 and the Nasdaq falling 375.13 points to 17,428.90. Crude oil fell 55 cents to US$69.37 per barrel, while gold rose US$15.90 to US$3,106.90 an ounce. The Canadian dollar traded at 69.98 cents US, slightly higher than Thursday’s 69.89 cents US.

• Oil: Oil is set for a third consecutive weekly gain, with Brent near $74 and WTI close to $70, as markets await new U.S. tariffs on auto imports and reciprocal levies next week. Brent futures have traded within a $15 range over the past six months, reflecting ongoing uncertainty tied to Trump’s policies and OPEC+ production plans. Analysts remain cautious, with Vitol’s CEO noting that global supply is sufficient for the near term, while Venezuela increases oil exports to China amid U.S. sanctions.

• Gold: Gold surged 0.9% to a record high of $3,085 an ounce, marking its fourth consecutive weekly gain, driven by rising haven demand amid escalating trade tensions. Trump imposed a 25% tariff on auto imports and warned of harsher actions against Europe and Canada, with more reciprocal tariffs expected on April 2. Gold is up 17% this year, hitting 15 all-time highs, fueled by central bank buying and geopolitical uncertainties. Goldman Sachs raised its year-end forecast to $3,300, while silver neared its highest level since 2012, benefiting from similar haven demand.

• Copper: Copper fell 0.2% to $9,827.50 per ton after hitting a nine-month high above $10,000 earlier this week, as reports indicate U.S. tariffs on copper imports could be introduced within weeks. This swift implementation may cut short traders' ability to divert more metal to the U.S. Despite the drop, concerns over potential production cuts in China may limit downside risk. Meanwhile, tin prices spiked over 3% following a 7.7-magnitude earthquake in Myanmar, a key producer, causing uncertainty about supply disruptions.

Jagmeet is a Gift to Carney

The stock market and stuff

• G Mining Ventures Posts Q4 AISC Of Just $862 An Ounce In First Full Quarter Of Production (theDeepDive)

• US stocks sink as deepening consumer gloom raises stagflation fears (FT)

• Glencore Cuts Cerrejon Coal Production As Prices Hit Three-Year Low (theDeepDive)

• AI Uncertainty Cools Demand for Hotly Anticipated CoreWeave IPO (WSJ)

• B2Gold Revises Mineral Estimates At Goose, Begins Study To Expand Mill (theDeepDive)

In the juniors

• Aya Gold Posts Net Loss Of $26 Million For 2024 (theDeepDive)

• Jaguar Mining Agrees To US$10 Million In Victim Compensation For Tailings Landslide (theDeepDive)

• West Red Lake Gold Sees Tony Makuch Resign From Board Of Directors (theDeepDive)

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