New car sales tumble in Canada as trade war bites, new data shows
Retail sales in Canada fell 1.1 per cent in May to $69.2 billion.
Core retail sales, which exclude gasoline stations, fuel vendors, motor vehicle and parts dealers, were relatively unchanged in May, the report said. The report said the drop in sales was, in part, due to 'the effects of trade tensions between Canada and the United States on Canadian retail businesses.'
Canada's auto industry seems to have taken the brunt of falling retail sales, with motor vehicles and parts dealers recording a drop of 3.6 per cent in retail sales in May. The drop was even starker when it came to new car dealerships, which saw sales fall by 4.6 per cent.
Story continues below advertisement
This was the first time since February that Canada saw sales at new car dealerships decline, Statistics Canada said.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy
Sales at gasoline stations and fuel vendors declined for the third consecutive month, down 1.4 per cent in May. However, car accessories and tire retailers saw sales jump 1.7 per cent, being the only segment of the auto industry that saw higher sales in May.
5:30
Canada's inflation rate climbs to 1.9%
Core retail sales unchanged
Aside from food and beverage sales, core retail sales in Canada were relatively unchanged in May.
Story continues below advertisement
Beverage sales in Canada fell 1.2 per cent, declining for the third month in a row.
Beer, wine and liquor retailers saw the biggest drop in this subsector within this sector, with sales falling 2.9 per cent. Supermarkets and grocery stores saw a decline of 0.6 per cent in sales.
As the weather warms up all over Canada, the largest increase in core retail sales in May came from building material and garden equipment and supplies dealers. This segment saw sales rise 1.9 per cent in May, followed by a 0.3 per cent decline in April.
Sales were also up at health and personal care retailers by 0.7 per cent in May. This was the 11th consecutive month of gains in the subsector.
In May, Canadians did not shop online as much as they did in April, as e-commerce sales declined 1.7 per cent to $4.3 billion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canada News.Net
4 hours ago
- Canada News.Net
Cocoa tariffs crush US firms, boost Canadian chocolate exports
LONDON/NEW YORK: U.S. President Donald Trump's tariffs are designed to strengthen domestic manufacturing. But in the chocolate industry, they're having the opposite effect, raising cocoa import costs and making U.S. production less competitive than factories in Canada and Mexico, industry executives and experts say. Thanks to the U.S.-Mexico-Canada Agreement (USMCA), chocolate exported to the U.S. from Canada and Mexico is tariff-free, regardless of where the cocoa is sourced. Meanwhile, U.S. manufacturers must now pay between 10 percent and 25 percent in tariffs on cocoa imports. Those rates could rise to 35 percent starting August 1. Canada has no tariffs on imported cocoa products like butter and powder, and Mexico grows its own beans, giving both countries a cost advantage over U.S.-based factories. Top U.S. chocolate producer Hershey, which has facilities in Canada and Mexico, estimated earlier that tariffs could cost it US$100 million in the second half of this year if they remain in place. The company recently introduced double-digit price hikes on products like Reese's cups, but said the increases were not related to tariffs. Smaller producers are also feeling the pressure. Taza Chocolate, based in Somerville, Massachusetts, had to pay over $24,000 in duties for a single container of cocoa from Haiti. Its next shipment from the Dominican Republic will cost more than $30,000 in tariffs. "For a company our size, that's our profit margin gone," said CEO Alex Whitmore. While he considered moving part of the production to Canada to benefit from USMCA, the investment was too risky in today's uncertain environment. "We're just hunkering down and hoping this will pass," he said. Customs data from Trade Data Monitor shows Canada's chocolate exports to the U.S. rose 10 percent in the first five months of this year. Industry insiders say Canadian and Mexican contract manufacturers are gaining market share, including multinationals like Barry Callebaut, which operates multiple facilities across North America. Barry Callebaut declined to comment, but CEO Peter Feld noted the company's presence in the U.S., Canada, and Mexico "allows us to navigate this environment." Contract chocolate makers supply raw chocolate to U.S. brands, which then add ingredients and market it as American-made. The timing is especially tough for U.S. chocolate makers. Cocoa prices have surged due to poor weather and disease in major producing countries like Ghana and the Ivory Coast. Cocoa accounts for 30 to 50 percent of a chocolate bar's total cost. Hershey said in May that it is lobbying the U.S. government for an exemption on cocoa imports. In Mexico, the chocolate association Aschoco Confimex said American companies have shown growing interest in outsourcing production south of the border. "The sentiment… and requests… to manufacture in Mexico is real and has been increasing," said director general Paolo Quadrini. The U.S. chocolate market is worth $25 to 30 billion. Imports from Canada and Mexico now make up roughly 12.5 percent of that total.
Calgary Herald
5 hours ago
- Calgary Herald
Alberta sees highest employment gains across Canada in June: labour force survey
This advertisement has not loaded yet, but your article continues below. As grey clouds hang over Edmonton's skyline, leaves change along the North Saskatchewan River on Wednesday, Oct. 2, 2024. Photo by Greg Southam / Postmedia The latest data from Statistics Canada shows Alberta had the highest employment gains across the country in June. 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 Calgary Herald 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 Calgary Herald 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 According the the June 2025 Labour Force Survey, Alberta's employment rate increased by 1.2 per cent in June, with a net gain of 30,000 jobs. It marked the second increase in three months for the province, representing 2,594,100 employed Albertans. The province's unemployment rate fell by 0.6 percentage points to 6.8 per cent in June. Moshe Lander, an economist at Concordia University in Montreal, said Alberta is a 'strength in Canada' and is an indication that more people are viewing the province as a desirable place to move to. Your weekday lunchtime roundup of curated links, news highlights, analysis and features. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again He said the province is doing well despite the ongoing threat of tariffs by United States President Donald Trump, which he said has yet to impact oil and gas. However, warned, at some point, tariffs will cause job losses in sectors where they're applied. 'Even though there are tariffs…Alberta has a lot going for it and it continues to draw people into the province, and it offers the advantages of low income taxes, no sales tax…There's lots of jobs here to be had,' Lander said. In Canada, employment increased by 83,000 in June, raising the employment rate to 60.9 per cent and the unemployment rate fell by 0.1 percentage point to 6.9 per cent. Alberta added 51,300 full-time jobs and lost 21,300 part-time jobs in June. While the data looks favourable for the province, Lander cautioned the data is 'always backward looking,' not forward looking. 'The exercise here is just to keep in mind that even though there are great gains for Alberta last month, that doesn't necessarily mean that those gains will continue, or those gains will be held going forward either,' Lander said. Joseph Marchand, an economics professor at the University of Alberta, said despite the ongoing trade discussions, geopolitical climate and changing interest rates, those factors have not had an impact on the province's unemployment rate, which sits just below the national unemployment rate of 6.9 per cent. He said while the unemployment has been steadily increasing and the employment rate has been steadily decreasing for the past few years, despite month-to-month fluctuations and large political changes, he views it a positive. This advertisement has not loaded yet. This advertisement has not loaded yet, but your article continues below. 'I would actually take that as good news…we're seeing big things in the news that aren't translating into big movements in the labour market…that means that the labour market is robust against what we think might be affecting it,' Marchand said. In a press release from July 11, Jobs and Economy Minister Joseph Schow said the statistics were 'welcomed news' and 'proof' that Alberta's drive to attract more investment is working. 'While there is more work to do, our province is moving in the right direction as more Albertans are getting the paycheques they need to get ahead,' Schow said. 'Moving forward, our government is steadily driving economic growth, with more investors choosing to do business in Alberta. By cutting red tape, lowering corporate taxes, increasing labour mobility and removing interprovincial trade barriers, our government is helping create jobs for hard-working people across the province while ensuring Alberta remains the best place to live, work and invest.'
Toronto Star
6 hours ago
- Toronto Star
An open letter to Prime Minister Mark Carney from Canada's $7-billion cannabis industry
Despite our progress, writes Paul McCarthy, significant barriers still prevent the Canada's massive cannabis industry from reaching its full potential — barriers we urge Ottawa to address as part of building One Canadian economy. Jeff McIntosh / The Canadian Press file photo flag wire: false flag sponsored: false article_type: Opinion : sWebsitePrimaryPublication : publications/toronto_star bHasMigratedAvatar : false : Paul McCarthy is the president and CEO of the Cannabis Council of Canada. This letter is endorsed by more than 50 CEOs across Canada's legal cannabis sector. Full list of signatories available at Opinion articles are based on the author's interpretations and judgments of facts, data and events. More details
