US retail sales fall and Americans turn cautious after spending early this year to beat tariffs
WASHINGTON (AP) — Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump's sweeping tariffs on nearly all imports.
Sales at retail stores and restaurants dropped 0.9% in May, the Commerce Department said Tuesday, after a decline of 0.1% in April. The figure was pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of Trump's 25% duty on imported cars and car parts. Excluding autos, sales fell 0.3%.
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The sales drop comes after sharp declines in consumer confidence this year. Still, inflation has cooled steadily and unemployment remains low, which could fuel steady spending in the coming months, as the economy has remained mostly solid.
Sales dropped 2.7% last month at home and garden centers, 0.6% at electronics and appliance stores, and 0.7% at grocery stores. There were some bright spots: Sales rose 0.9% at online retailers, 0.8% at clothing stores, and 1.2% at furniture stores.
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The Province
29 minutes ago
- The Province
Musk bets robotaxis will give Tesla a lift after boycotts and sales plunge
Published Jun 22, 2025 • 4 minute read FILE - Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington, March 9, 2020. Photo by Susan Walsh / AP NEW YORK (AP) — Elon Musk promised in 2019 that driverless Tesla 'robotaxis' would be on the road 'next year,' but it didn't happen. A year later, he promised to deliver them the next year, but that didn't happen either. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Despite the empty pledges the promises kept coming. Last year in January, Musk said, 'Next year for sure, we'll have over a million robotaxis.' Would you settle for 10 or 12? Musk appears to be on the verge of making his robotaxi vision a reality with a test run of a small squad of self-driving cabs in Austin, Texas, starting Sunday. Reaching a million may take a year or more, however, although the billionaire should be able to expand the service this year if the Austin demo is a success. The stakes couldn't be higher, nor the challenges. While Musk was making those 'next year' promises, rival Waymo was busy deploying driverless taxis in Los Angeles, San Diego, Austin and other cities by using a different technology that allowed it to get to market faster. It just completed its 10 millionth paid ride. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Boycotts related to Musk's politics have tanked Tesla's sales. Rival electric vehicle makers with newly competitive models have stolen market share. And investors are on edge after a $150 billion stock wipeout when Musk picked a social media fight with a U.S. president overseeing federal car regulators who could make the robotaxi rollout much more difficult. The stock has recovered somewhat after Musk said he regretted some of his remarks. Tesla shareholders have stood by Musk over the years because he's defied the odds by building a successful standalone electric vehicle company — self-driving car promises aside — and making them a lot of money in the process. A decade ago, Tesla shares traded for around $18. The shares closed Friday at $322. This advertisement has not loaded yet, but your article continues below. Musk says the Austin test will begin modestly enough, with just 10 or 12 vehicles picking up passengers in a limited area. But then it will quickly ramp up and spread to other cities, eventually reaching hundreds of thousands if not a million vehicles next year. Some Musk watchers on Wall Street are skeptical. 'How quickly can he expand the fleet?' asks Garrett Nelson, an analyst at CFRA. 'We're talking maybe a dozen vehicles initially. It's very small.' Morningstar's Seth Goldstein says Musk is being classic Musk: Promising too much, too quickly. 'When anyone in Austin can download the app and use a robotaxi, that will be a success, but I don't think that will happen until 2028,' he says. 'Testing is going to take a while.' This advertisement has not loaded yet, but your article continues below. Musk's tendency to push up the stock high with a bit of hyperbole is well known among investors. In 2018, he told Tesla stockholders he had 'funding secured' to buy all their shares at a massive premium and take the company private. But he not only lacked a written commitment from financiers, according to federal stock regulators who fined him, he hadn't discussed the loan amount or other details with them. More recently, Musk told CNBC in May that Tesla was experiencing a 'major rebound' in demand. A week later an auto trade group in Europe announced sales had plunged by half. Musk has come under fire for allegedly exaggerating the ability of the system used for its cars to drive themselves, starting with the name. Full Self-Driving is a misnomer. The system still requires drivers to keep their eyes on the road because they may need to intervene and take control at any moment. This advertisement has not loaded yet, but your article continues below. Federal highway safety regulators opened an investigation into FSD last year after several accidents, and the Department of Justice has conducted its own probe, though the status of that is not known. Tesla has also faced lawsuits over the feature, some resulting in settlements, other dismissed. In one case, a judge ruled against the plaintiffs but only because they hadn't proved Musk 'knowingly' made false statements. Musk says the robotaxis will be running on an improved version of Full Self-Driving and the cabs will be safe. He also says the service will be able to expand rapidly around the country. His secret weapon: Millions of Tesla owners now on the roads. He says an over-the-air software update will soon allow them to turn their cars into driverless cabs and start a side business while stuck at the office for eight hours or on vacation for a week. This advertisement has not loaded yet, but your article continues below. 'Instead of having your car sit in the parking lot, your car could be earning money,' Musk said earlier this year, calling it an Airbnb model for cars. 'You will be able to add or subtract your car to the fleet.' Musk says Tesla also can move fast to deploy taxis now because of his decision to rely only on cameras for the cars to navigate, unlike Waymo, which has gone a more expensive route by supplementing its cameras with lasers and radar. 'Tesla will have, I don't know,' Musk mused in an conference call with investors, '99% market share or something ridiculous.' Given Waymo's head start and potential competition from Amazon and others, dominating the driverless market to that extent could be a reach. But Dan Ives, a Wedbush Securities analyst and big Musk fan, says this time Musk may actually pull it off because of Tesla's ability to scale up quickly. And even skeptics like Morningstar's Goldstein acknowledge that Musk occasionally does gets things right, and spectacularly so. He upended the car industry by getting people to buy expensive electric vehicles, brought his Starlink satellite internet service to rural areas and, more recently, performed a gee-whiz trick of landing an unmanned SpaceX rocket on a platform back on earth. 'Maybe his timelines aren't realistic,' Goldstein says, 'but he can develop futuristic technology products.' Vancouver Canucks Vancouver Canucks Vancouver Canucks News Hockey
Toronto Sun
30 minutes ago
- Toronto Sun
CHARLEBOIS: Missiles fired in the Middle East could drive up your food bill
This picture shows rocket trails in the sky above Jerusalem on June 13, 2025. Photo by MENAHEM KAHANA / AFP via Getty Images If the world was looking for a distraction from the intensifying trade tensions under Trump 2.0, the U.S.' direct military action in Iran certainly delivers. But this is no sideshow. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The escalation in the Middle East could have immediate and far-reaching consequences, especially for the global agri-food sector — and Canada is not immune. Geopolitical volatility in the Middle East has historically triggered sharp increases in crude oil prices. Following initial Israel–Iran exchanges in June, oil prices surged over 10%, and the latest attacks suggest more turbulence ahead. Since natural gas is a core input for fertilizer production, any spike in energy markets means higher fertilizer costs. While most Canadian farmers have already secured inputs for this season, unlike the early-2022 Ukraine invasion, cost pressures will be felt later in the supply chain. But the shutdown of Iran's urea and ammonia plants could ripple through global fertilizer markets, tightening supply and driving up prices—especially for nitrogen-based fertilizers. Canada, though a fertilizer producer, still relies on global pricing dynamics, and higher costs could significantly impact input expenses for Canadian farmers. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. This could reduce planting margins for crops like wheat, canola, and corn, potentially leading to lower yields or higher food prices. If South American buyers shift demand to other suppliers like the U.S. or Trinidad, competition for fertilizer could intensify. The Strait of Hormuz, a strategic choke-point for one-third of global oil and gas shipments, is now even more vulnerable. Any disruption could delay fertilizer and grain shipments, elevate global logistics costs, and strain the availability of key imports like soybeans and wheat. Global supply chains, already stressed, will feel the pinch. Recommended video Currency volatility often follows regional conflict. Emerging market currencies tend to weaken, raising the cost of food and ag inputs in fragile economies. For Canada, the situation is more nuanced. This advertisement has not loaded yet, but your article continues below. Higher oil prices may support the loonie, but geopolitical instability breeds uncertainty — and markets despise uncertainty. A weaker Canadian dollar could make imported food, from produce to packaged goods, more expensive. This confluence of factors—rising transport and input costs, potential shipping delays, currency instability—can accelerate food inflation across Canada. Our food supply chain is vast, import-reliant, and highly sensitive to energy costs. Greenhouse operators, Prairie grain growers, and livestock producers could all face margin pressure. Consumers, particularly in lower-income households and in regions like Atlantic Canada or the North, will feel the consequences most acutely. This advertisement has not loaded yet, but your article continues below. Beyond economics, Ottawa's diplomatic playbook will be tested. Sanctions — whether imposed by or against Canada—could further disrupt agri-food trade, as was the case in past global conflicts. Export restrictions, trade policy shifts, and new subsidies may emerge as countries scramble to stabilize domestic markets. The global food system is deeply interconnected. What happens in the Middle East doesn't stay there — it sends shockwaves across continents, from farm to fork. This latest escalation is a stark reminder of how vulnerable our food economy remains to geopolitical unrest. Let's hope policymakers are paying attention—and that they keep food-insecure populations, both here and abroad, top of mind. — Dr. Sylvain Charlebois is the Director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is currently a Visiting Scholar at McGill University in Montreal. Sports Toronto & GTA Sunshine Girls Columnists Editorial Cartoons
Toronto Sun
4 hours ago
- Toronto Sun
Musk bets robotaxis will give Tesla a lift after boycotts and sales plunge
Published Jun 22, 2025 • 4 minute read FILE - Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington, March 9, 2020. Photo by Susan Walsh / AP NEW YORK (AP) — Elon Musk promised in 2019 that driverless Tesla 'robotaxis' would be on the road 'next year,' but it didn't happen. A year later, he promised to deliver them the next year, but that didn't happen either. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Despite the empty pledges the promises kept coming. Last year in January, Musk said, 'Next year for sure, we'll have over a million robotaxis.' Would you settle for 10 or 12? Musk appears to be on the verge of making his robotaxi vision a reality with a test run of a small squad of self-driving cabs in Austin, Texas, starting Sunday. Reaching a million may take a year or more, however, although the billionaire should be able to expand the service this year if the Austin demo is a success. The stakes couldn't be higher, nor the challenges. While Musk was making those 'next year' promises, rival Waymo was busy deploying driverless taxis in Los Angeles, San Diego, Austin and other cities by using a different technology that allowed it to get to market faster. It just completed its 10 millionth paid ride. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Boycotts related to Musk's politics have tanked Tesla's sales. Rival electric vehicle makers with newly competitive models have stolen market share. And investors are on edge after a $150 billion stock wipeout when Musk picked a social media fight with a U.S. president overseeing federal car regulators who could make the robotaxi rollout much more difficult. The stock has recovered somewhat after Musk said he regretted some of his remarks. Tesla shareholders have stood by Musk over the years because he's defied the odds by building a successful standalone electric vehicle company — self-driving car promises aside — and making them a lot of money in the process. A decade ago, Tesla shares traded for around $18. The shares closed Friday at $322. This advertisement has not loaded yet, but your article continues below. Musk says the Austin test will begin modestly enough, with just 10 or 12 vehicles picking up passengers in a limited area. But then it will quickly ramp up and spread to other cities, eventually reaching hundreds of thousands if not a million vehicles next year. Some Musk watchers on Wall Street are skeptical. 'How quickly can he expand the fleet?' asks Garrett Nelson, an analyst at CFRA. 'We're talking maybe a dozen vehicles initially. It's very small.' Morningstar's Seth Goldstein says Musk is being classic Musk: Promising too much, too quickly. 'When anyone in Austin can download the app and use a robotaxi, that will be a success, but I don't think that will happen until 2028,' he says. 'Testing is going to take a while.' This advertisement has not loaded yet, but your article continues below. Musk's tendency to push up the stock high with a bit of hyperbole is well known among investors. In 2018, he told Tesla stockholders he had 'funding secured' to buy all their shares at a massive premium and take the company private. But he not only lacked a written commitment from financiers, according to federal stock regulators who fined him, he hadn't discussed the loan amount or other details with them. More recently, Musk told CNBC in May that Tesla was experiencing a 'major rebound' in demand. A week later an auto trade group in Europe announced sales had plunged by half. Musk has come under fire for allegedly exaggerating the ability of the system used for its cars to drive themselves, starting with the name. Full Self-Driving is a misnomer. The system still requires drivers to keep their eyes on the road because they may need to intervene and take control at any moment. This advertisement has not loaded yet, but your article continues below. Federal highway safety regulators opened an investigation into FSD last year after several accidents, and the Department of Justice has conducted its own probe, though the status of that is not known. Tesla has also faced lawsuits over the feature, some resulting in settlements, other dismissed. In one case, a judge ruled against the plaintiffs but only because they hadn't proved Musk 'knowingly' made false statements. Musk says the robotaxis will be running on an improved version of Full Self-Driving and the cabs will be safe. He also says the service will be able to expand rapidly around the country. His secret weapon: Millions of Tesla owners now on the roads. He says an over-the-air software update will soon allow them to turn their cars into driverless cabs and start a side business while stuck at the office for eight hours or on vacation for a week. This advertisement has not loaded yet, but your article continues below. 'Instead of having your car sit in the parking lot, your car could be earning money,' Musk said earlier this year, calling it an Airbnb model for cars. 'You will be able to add or subtract your car to the fleet.' Musk says Tesla also can move fast to deploy taxis now because of his decision to rely only on cameras for the cars to navigate, unlike Waymo, which has gone a more expensive route by supplementing its cameras with lasers and radar. 'Tesla will have, I don't know,' Musk mused in an conference call with investors, '99% market share or something ridiculous.' Given Waymo's head start and potential competition from Amazon and others, dominating the driverless market to that extent could be a reach. But Dan Ives, a Wedbush Securities analyst and big Musk fan, says this time Musk may actually pull it off because of Tesla's ability to scale up quickly. And even skeptics like Morningstar's Goldstein acknowledge that Musk occasionally does gets things right, and spectacularly so. He upended the car industry by getting people to buy expensive electric vehicles, brought his Starlink satellite internet service to rural areas and, more recently, performed a gee-whiz trick of landing an unmanned SpaceX rocket on a platform back on earth. 'Maybe his timelines aren't realistic,' Goldstein says, 'but he can develop futuristic technology products.' Sunshine Girls Sports World Columnists Editorial Cartoons
