Canadian Auto Sales Show Resilience Amid Tariff Uncertainty
In May 2025, the Canadian auto industry faced significant uncertainty, largely due to the postponement of Trump’s proposed 25% tariffs on CUSMA auto parts, which averted immediate market disruption.
As a result, the market showed resilience, with sales rising 7.9% year-over-year to 187,000 units, although this was aided by an extra selling day and a weak May 2024 comparison. The seasonally adjusted annual rate (SAAR) was 1.81 million, below historic norms.
Despite concerns over Canadian counter tariffs implemented in April, the impact has been mitigated for the five companies that assemble in Canada through a government remission order, limiting broader market exposure. Still, some U.S.-sourced models may face price challenges. Uncertainty remains high, with hopes pinned on the upcoming G7 summit for potential trade resolutions.
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U.S. Gas Prices Hold Steady, Remain Among Lowest in Years Despite Regional Swings
As of May 28, 2025, U.S. gasoline prices average $3.16 per gallon, slightly up from the previous week but 41.7 cents lower year-over-year, according to the EIA. GasBuddy reports a similar trend, with prices 3.1 cents higher than a month ago but 43.0 cents lower than last year, and the most common price holding steady at $2.99.
Senate Votes to Revoke California’s Zero-Emission Vehicle Mandate, Setting Up Legal Battle
On May 22, 2025, the U.S. Senate voted 51–44 to rescind California’s authority to enforce its Advanced Clean Cars II (ACC II) regulation, which mandated all new light-duty vehicles sold in the state be zero-emission by 2035.