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
Cision Canada
14 minutes ago
- Cision Canada
Insured losses from Jasper wildfire rise to just under $1.3 billion
Permitting delays slow rebuilding one year after wildfire EDMONTON, AB, July 25, 2025 /CNW/ - Insured losses from the Jasper wildfire are now estimated to be close to $1.3 billion, according to new data released today by Catastrophe Indices and Quantification Inc. (CatIQ). This is an increase of $80 million over the six-month estimate from CatIQ in January. "One year after the second-costliest fire event in Canadian history, many residents are still working through the process of securing the proper permits to begin reconstruction of their property," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada. "Despite delays, residents can rest assured that insurers will stand with them until every claim is closed." The July 24, 2024, wildfire destroyed 358 homes and businesses in the town of Jasper. Today, only 56 (15%) are approved for reconstruction, and only two buildings are currently being rebuilt. "The federal government recently announced that it would be expediting efforts moving forward and providing up to $5 million in additional support to cover the unexpected cost of soil testing and removal. This is a positive move and one that hopefully bolsters reconstruction efforts to begin in earnest," said Sutherland. "There's still a lot of work to do and rebuilding will take time, but there is light at the end of a very long tunnel for Jasper residents who lost so much in the fire. The people of Jasper have shown tremendous resilience, and Alberta's insurers will continue to match that spirit and support their customers every step of the way." Alberta's insurers have been on the ground in Jasper since the first day of the fire and are continuing to provide financial support to residents who lost their homes. Insurers also coordinated and paid for the removal, de-gassing and proper disposal of about 2,300 fridges and freezers ruined by food spoilage due to prolonged power outages during several weeks of the evacuation. This coordinated residential bulk-debris-removal program is helping to reduce costs and speed up recovery in the community. In April, wildfire recovery efforts reached a significant milestone with the completion of the insurer-coordinated debris removal program. Insured damage caused by severe weather events in 2024 surpassed $9.2 billion for the first time in Canadian history (January 2025 estimate was $8.5 billion). Last summer was the most expensive on record in Canada for catastrophic weather events, with 228,000 insurance claims and over $8 billion in insured damage. These events are placing pressure on insurance premiums in Alberta and across the country, and are important reminders of the need to increase investments in resilience and other measures to better protect communities. Governments across Canada have a critical role to play in better protecting Canadians from natural disasters. This includes: Halting the construction of unprotected homes and businesses in high-risk flood and wildfire zones Investing in vulnerable communities to ensure they are FireSmart and better protected against flooding Helping homeowners understand the specific risks they face in their area Subsidizing home retrofits to help reduce exposure to floods and wildfires. Canada also needs a federal coordinating agency to guide emergency preparedness and recovery so that communities across the country don't have to create unique playbooks after each catastrophic event. Every other G7 country has an agency operating in this capacity – it's time for Canada to follow suit and take a proactive approach to emergency management. The amount of insured damage is an estimate provided by CatIQ ( under license to IBC. About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help. SOURCE Insurance Bureau of Canada
Toronto Sun
14 minutes ago
- Toronto Sun
OPINION: Taxes remain largest single expense for Canadian families
Canada Revenue Agency income tax forms and statements. Getty Images While policymakers in Canada face many issues, including U.S. President Donald Trump's trade war, few issues are more important to Canadians than the rising cost of living. And while inflation and housing costs are important, there's another even larger expense that makes it harder for families to make ends meet: Taxes. 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 As the saying goes, the two certainties in life are death and taxes. But, while we all know we must pay taxes, it's more difficult to know just how much in total we actually pay. Canadians pay many different taxes to local, provincial and federal governments — income taxes, property taxes, sales taxes and payroll taxes, to name a few. And while some of these are quite visible (you can see how much personal income tax is taken off your paycheque), others are more hidden. According to a new study published by the Fraser Institute, in 2024, the average Canadian family (including single people) paid $48,306 in total taxes. Given the average family's total cash income was $114,289 in 2024, this means families paid 42.3% of their incomes in taxes levied by all levels of government. 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 is much more than what families used to pay, even after adjusting for inflation. In fact, the average Canadian family paid just $17,166 in total taxes in 1961 (adjusted for inflation), which represented 33.5% of its total income that year. In other words, from 1961 to 2024, the inflation-adjusted tax bill of the average Canadian family increased by more than 180%. How does the average family's total tax bill compare with how much it spends on the basic necessities of food, shelter and clothing? In 2024, the average Canadian family spent $12,925 on food, $25,199 on shelter and $2,435 on clothing. Which means the average family spent a larger share of its income on taxes (42.3%) than on basic necessities (35.5%). This advertisement has not loaded yet, but your article continues below. Simply put, taxes are the largest single expense for Canadian families. Of course, Canadians receive some value from their tax dollars in the form of government services, so the total tax bill is the price Canadians pay for government services. Therefore, it's ultimately up to individuals and families to decide whether or not they get their money's worth from government. But clearly, some Canadians do not feel like they're getting good bang for their buck. For instance, according to a 2023 poll , nearly half (44%) of Canadians felt they received 'poor' or 'very poor' value from the services they receive from all levels of government. A 2025 poll found similar results — more Canadians feel they receive 'bad' value rather than 'good' value for money from all levels of government. Canadian families pay more in taxes than they spend on food, shelter and clothing combined, yet many feel they do not receive good value for their money. If policymakers want to help families make ends meet, they should lower the tax burden. Jake Fuss and Grady Munro are economists at the Fraser Institute Columnists Toronto & GTA Hockey Sports Toronto Blue Jays
Global News
44 minutes ago
- Global News
Manitoba government touts $115M in Highway 2 improvements
The Manitoba government says it's spending $15 million on Provincial Trunk Highway 2 improvements. The funding is set to be used for 'repairing and replacing structures' on the highway, which runs west from Winnipeg to the provincial border with Saskatchewan. 'These upgrades reflect the priorities of our government in ensuring that local producers, grain elevators and community members have safe and efficient roads in their region,' Premier Wab Kinew said in a statement Friday. 'Some of these roadways have been neglected for a long time and our government recognizes the importance to the community.' Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Among the planned improvements: rehabbing 15 kilometres of PTH 5, north of PTH 2, which will allow weight restrictions to be lifted during the spring thaw, as well as bridge replacements at Spruce Woods and north of Holland, Man. Story continues below advertisement 'By addressing these long-standing infrastructure challenges, we're not only improving safety and reliability for drivers, but we are also supporting the economic lifelines of agricultural producers,' Transportation and Infrastructure Minister Lisa Naylor said. The announcement is the latest in a series of provincial funding initiatives for western Manitoba, ahead of a byelection in Spruce Woods that must be held by mid-September.
