Group of investors submits revised offer to buy Quebec-based Lion Electric

By The Canadian Press
Updated: May 12, 2025 

The Lion Electric Company's lithium-ion battery manufacturing facility in Mirabel, Que., THE CANADIAN PRESS/Christinne Muschi

A group of investors has submitted a revised offer to buy Quebec vehicle-maker Lion Electric, providing a possible lifeline to the beleaguered company.

The new offer comes after the Quebec government refused to inject more public money into the St-Jérome, Que.-based electric-vehicle manufacturer, causing an earlier transaction to fall through.

According to court documents, the buyers have reached an agreement with the Quebec government to renew a recently expired subsidy program for electric school buses. On Friday, they made their new offer to buy the company, which sought protection from its creditors in December.

On May 5, the court-appointed monitor for Lion Electric told a Quebec Superior Court judge that the company would very likely be liquidated following the government’s decision not to provide any more public funds.

The investors had made a previous bid to buy the company, but it was contingent on the Quebec government “agreeing to participate and invest in the operations of the Lion Group going forward,” according to the court documents. Recent news reports said the group of buyers was seeking $24 million from the province to relaunch the company.

On April 30, Quebec Economy Minister Christine Fréchette announced it would be irresponsible to offer Lion more public money. She later told reporters she “would have expected the private sector to be more involved.”

Quebec has already invested heavily in Lion Electric, and Premier François Legault has said the province stands to lose about $140 million on the company, which manufactured electric school buses and trucks.

Following the hearing last week, Lion Electric continued discussions with the group of investors and with other companies interested in liquidating its assets, the court documents say. On Friday, the investors reached an agreement with the Quebec government to renew a program that had expired in March and offered subsidies to help school bus operators afford the higher cost of electric buses.

That program was integral to Lion’s success in Quebec, where the government has required since 2021 that all new school buses be electric. There are currently about 1,175 Lion school buses on the road in the province.

The new agreement allowed the investors to submit a new offer to buy the company “with minimal conditions,” according to the court documents. The monitor will ask the court Monday afternoon for an extension until Friday to finalize the deal.

Lion Electric has been seeking a buyer since December, with a restructuring plan that would focus only on school buses and return all manufacturing to Quebec. The company shut down production at a plant in Illinois last year after undergoing several rounds of layoffs. It has now laid off all but 12 of its employees.

This report by The Canadian Press was first published May 12, 2025.

Alberta government announces indefinite freeze on industrial carbon price

By The Canadian Press
Updated: May 12, 2025 

Alberta Premier Danielle Smith speaks with reporters before a meeting in Halifax, 

. THE CANADIAN PRESS/Darren Calabrese

Alberta Premier Danielle Smith says her government is freezing its industrial carbon price effective immediately at $95 per tonne of emissions.

Smith told reporters Monday the move is critical to keep industry competitive and defend jobs as Canada navigates a tariff fight with the United States.

“With the change in government south of the border, it is essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets,” she said.

“We are providing certainty, stability and economic relief to the businesses that contribute so much to all of Canada. And we are supporting the energy producers whose expertise and innovation are quite literally shaping the world’s energy future.”

The price had been set to rise to $110 per tonne in 2026 and was to continue increasing to $170 per tonne by 2030.

Environment Minister Rebecca Schulz said going over $100 a tonne would make the province “wildly uncompetitive.”

She said the freeze, which is indefinite, doesn’t mean Alberta is giving up on its emission reduction goals.

“We are absolutely a leader when it comes to energy and resource development, but also when it comes to emissions reduction,” Schulz said.

“Instead of punishing our industry, we want to allow them to grow, thrive, continue to increase production and reduce global emissions all at the same time.”

This report by The Canadian Press was first published May 12, 2025.

‘Sets the tone’: More than half of PM Carney’s new cabinet will be fresh faces

By Spencer Van Dyk  and Rachel Aiello
Updated: May 12, 2025 


PM Mark Carney set to unveil new cabinet

When Prime Minister Mark Carney unveils his new front bench on Tuesday, more than half of its members will be fresh faces, CTV News has confirmed.

The Prime Minister’s Office (PMO) tells CTV News that Carney’s new cabinet will be a more focused roster, and while the core slate of cabinet ministers is expected to stay under 30 people, he’ll also be appointing up to 10 secretaries of state.

This return to a practice used by past prime ministers — while not employed by former prime minister Justin Trudeau — of using junior ministers, will see Carney’s central team take the lead on the biggest portfolios, while the secretaries of state could be tapped to stickhandle specific files.

More than 50 per cent of those being sworn-in at Rideau Hall tomorrow will be rookies, according to PMO.

Sources tell CTV News that two rookies who will be among those promoted are former Vancouver mayor Gregor Robertson, who will take over the housing file, and former Quebec cabinet minister Carlos Leitao, whose title has yet to be confirmed.

While two sources initially told CTV News that longtime minister Chrystia Freeland was on her way out, CTV News has since learned she is to remain in cabinet, and is expected to be in attendance at tomorrow’s swearing-in ceremony.

Cabinet team will be two-tiered

Carney opting to appoint two levels of key Liberals comes as part of his aim to streamline decision-making.

According to a PMO source, the secretaries of state wouldn’t take part in all major cabinet meetings or cabinet committees, but could be tapped in on specific issues or government-wide decisions.

Per parliamentary rules, anyone Carney names a cabinet minister will receive a $99,900 top-up to their MP base salary, while secretaries of state are slated to see salary top-ups of $74,700.

“In lieu of having many more ministers around the table, he wants a smaller group to get to decision making more expeditiously. That’s clear,” said Marci Surkes, the chief strategy officer and managing director at Compass Rose, in an interview with CTV News on Monday.

“Tiering is not a negative. In fact, if you look at other Westminster models, this is very commonplace in terms of how cabinets organize themselves,” said Surkes, who played key roles behind the scenes during Justin Trudeau’s tenure, including as executive director of policy and cabinet affairs in the Prime Minister’s Office between 2019 and 2022.

“Mr. Trudeau chose to organize his cabinet in a different way. This is the prime minister’s prerogative… But it doesn’t mean that junior ministers, so to speak… have less of a role to play.”

“What it allows for is very robust decision making to happen with that core group of ministers, but you can, and on a regular basis, have the ability to tap into a broader group for different perspectives from some of the smaller portfolio agencies that actually bring a lot of color and importance to those decisions,” Surkes said. “But they may not be key to being there all of the time, and that’s okay.

Rookies to keep an eye on

Expect this new front bench to be made up of those Carney thinks can deliver quickly on his promise to set Canada on a “new path.”

Several prominent names won a seat in last month’s election, whether they entered politics for the first time, or made the switch from municipal or provincial government.

Some of those include former broadcaster Evan Solomon, former IBM Canada CEO Claude Guay, and engineer and survivor of the École Polytechnique mass shooting Nathalie Provost.

Meanwhile, Carney’s first cabinet — which was sworn in, in mid-March — kept some of Trudeau’s longtime ministers and core team in place, including Dominic LeBlanc, Melanie Joly, Francois-Philippe Champagne, and Anita Anand.

Cabinet choices ‘set the tone’

Surkes said that deciding who is going to be in the ministry “sets the tone for the entirety of the mandate.”

“The prime minister understands that, (his) closest advisors understand that. They know that to the extent possible, there’s little room for error,” she said.

Surkes said watch for Carney to leverage having a more regionally diverse roster, and recruits with big resumes.

“The prime consideration for Mr. Carney is going to be ‘who has the skills to take the decisions and to lead at this critical moment for our country?’ Period. End of sentence.”

“He is running this cabinet like a business. He’s running the government of Canada like a corporation,” Surkes said. “And for the moment we are in, it makes a lot of sense to have a more streamlined perspective around that big table.”

According to Scott Reid — a CTV News political analyst and former communications director to former prime minister Paul Martin — Carney doesn’t seem to want to “play incremental games.”

“Early in his leadership campaign, Mark Carney said this to Radio-Canada: he said, ‘no crisis, no Mark Carney,’ and I think he genuinely believes that and feels that,” Reid said on CTV Question Period’s Sunday Strategy Session panel.

“It isn’t just a question of who you pick,” Reid added. “It’s also a question of the priorities you’ve established and the focus and concentration of your agenda that comes out of this transition.”

Reid also said he’s predicting “getting things done is going to be a watermark for this prime minister.”

The new cabinet is set to be sworn in at Rideau Hall Tuesday morning at 10:30 a.m. EDT.

With files from CTV News’ Colton Praill, Jeremie Charron and Mike Le Couteur
Correction

This article initially reported, based on two sources, that longtime cabinet minister Chrystia Freeland was being shuffled out of cabinet, but CTV News has since confirmed she is to remain a member of Prime Minister Mark Carney’s front bench. This article has been updated to reflect that.

Spencer Van Dyk
Writer & Producer, Ottawa News Bureau, CTV News

Rachel Aiello
National Correspondent, CTV Ne

Trade War

Canada’s ambassador says economic talks must prioritize lifting Trump’s tariffs

By The Canadian Press
Published: May 13, 2025 

Canada's Ambassador to the U.S. Kirsten Hillman speaks to reporters during a cabinet retreat at Chateau Montebello in Montebello, Que. 

THE CANADIAN PRESS/Sean Kilpatrick

WASHINGTON — Ottawa’s top diplomat in Washington says talks to negotiate any new deals with the United States will prioritize ending U.S President Donald Trump’s ruinous tariffs on Canadian exports.

Ambassador to the United States Kirsten Hillman said Monday that initial negotiations with Trump’s team will focus on lifting tariffs, as well as specific bilateral issues between Canada and the U.S.

“Dealing with those tariffs, and getting Canada into a position where we are finding stability in the trading relationship, is our number one priority with the Americans,” Hillman said. “There is no discussion to be had with the Americans without that being on the table from Canada’s perspective. That is a starting point for us.”

Trump also said he wants changes to the Canada-U.S.-Mexico Agreement on trade, called CUSMA. Hillman said talks specific to the continental trade pact will take place separately at a later date.

Trump slapped Canada with 25 per cent economywide duties in March, only to partially pause tariffs on imports compliant with CUSMA a few days later. Canada is also being hit with tariffs on steel, aluminum and automobiles.

CUSMA was negotiated during the first Trump administration and some experts say the tariffs were meant to rattle Canada and Mexico ahead of a mandatory review next year.

Hillman said in the week since Prime Minister Mark Carney met with Trump at the White House, she has spoken with United States Trade Representative Jamieson Greer and International Trade Minister Dominic LeBlanc has been in contact with U.S. Commerce Secretary Howard Lutnick.

“The process now will be to get those discussions started in a serious and substantive way,” Hillman said.

The president and prime minister both described the encounter as cordial and productive, clearing the slate for bilateral talks that had been undermined by Trump’s repeated talk of making Canada a U.S. state.

While the president assured reporters in the Oval Office he was still keen on annexing Canada, he softened his tone, saying, “It takes two to tango.”

Hillman said that despite those comments, Trump repeatedly told Carney in public and behind closed doors that it was an honour to speak with him. Canadians were looking to reset the relationship with the White House and Hillman said Trump set the tone for open lines of communication and professionalism.

“They agreed to negotiate a deal that works for both countries,” she said.

Trump said last Tuesday that CUSMA was very effective and is “still very effective.” The president also described it as a “transitional deal” and said he didn’t know if it was “necessary anymore.”

Carney said Canada is also looking to change some aspects of the continental trade pact. The prime minister pointed to the national security exemptions in trade law that allowed Trump to slam Canada with tariffs — which the president linked to baseless claims about widespread fentanyl trafficking over the Canadian border.

For now, Hillman said, the priority is to work on negotiations between Canada and the United States on bilateral issues like Arctic security, defence and the northern border that don’t necessarily fit into CUSMA talks.

“The U.S. has been clear with us since the president took office that they are looking to have bilateral discussions with every country,” she said. “They are engaged with a bilateral discussion with Mexico now. Mexico is in town almost every week talking to the Americans.”

Trump took his trade war to the world in April with “reciprocal” tariffs. He walked the most significant tariffs back a few hours later, putting in place a 10 per cent universal levy for 90 days, which he said would give countries time to make a deal.

As other nations race to find ways to deal with the Trump administration, Hillman said she has “every expectation that (Canada) will be able to have the time we need with the administration to deal with our issues.”

“There’s a strong signal from the top level in this country that Canada is a priority,” she said. “That’s not just because the president clearly wants it to be so, but it’s also because we’re their biggest customer by far.”

This report by The Canadian Press was first published May 13, 2025.

Kelly Geraldine Malone, The Canadian Press

Chinese elite’s favored car brand is getting a modern makeover

By Bloomberg News
Published: May 12, 2025 


A Hongqi concept flying vehicle on display at the Shanghai auto show. Photographer: Qilai Shen/Bloomberg

One of China’s oldest car brands is remaking itself for the modern era.

Hongqi, the marque that’s ferried Chinese leaders for decades, is now setting its sights on carving out a greater share of the country’s booming electric car market. It’s even teased a foray into aerial mobility as part of its “all in” new-energy vehicle push that’s seen it stop all new investment in gasoline-engine technology.

The carmaker has set an aggressive sales target as it looks to gain ground on better-known EV brands like BYD Co. Hongqi wants to more than double NEV deliveries this year to 250,000 units, accounting for 50 per cent of total sales, up from 28% last year. By 2028, NEVs should make up 70 per cent of sales.

It’s a major pivot for a company deeply ingrained in the national psyche. Established in 1958, Hongqi’s name means “red flag,” a nod to the Communist revolution that resulted in the founding of modern day China. Using the American Chrysler Imperial C69 as a prototype for its first car, Hongqi vehicles were for a time exclusively available to high-ranking officials.

While Hongqi cars are now accessible to the masses, they still play special roles. President Xi Jinping rode in a bulletproof gasoline-powered N701 limousine when he met former President Joe Biden in the U.S. in 2023. Biden, who traveled in the heavily armored Cadillac known as “The Beast,” appeared taken by the vehicle, describing it as “beautiful.”

“Hongqi has really flipped the script on its old image — it’s not just for the old guard anymore,” said Yale Zhang, managing director at Shanghai-based consultancy AutoForesight. “With FAW Group backing it, you’ve got that foundation of quality, reliability, brand continuity, and a history that gives it real credibility.”

But it’s unclear if those qualities will translate to sales in the competitive Chinese market that emphasizes cutting-edge technology. Hongqi’s existing offerings have struggled to gain significant traction in the consumer market. The bulk of its EV deliveries were to ride-hailing services before it announced a strategy change at the start of 2023.

Hongqi’s late entry into the NEV sector means it’s not only playing catch-up with the likes of BYD, but also competing with other state-owned rivals including Dongfeng Motor Group and Chongqing Changan Automobile that have set up independent EV brands or forged partnerships with domestic technology giants.

Its vehicles are priced to move: The entry-level version of its model that competes with Tesla Inc.’s Model 3 now starts at 159,800 yuan ($22,000), contrasting sharply with some of its most luxurious gasoline-powered cars, which can exceed 7.18 million yuan.

Hongqi is also looking beyond its home market. The company aims to establish over 700 experience centers and 1,000 service network points internationally by this year and wants overseas sales to exceed 10% of its total volume, with a goal to hit 25 per cent by 2030. It’s already making inroads, taking pre-orders for its electric EH7 and EHS7 models after showcasing them last year at the Paris motor show. In 2022, it became the first Chinese EV brand to be added to the Dubai police fleet’s patrol car lineup.

It’s also teamed up with Chinese battery giant Contemporary Amperex Technology Co. Ltd. and LongShine New Energy to build a battery-swapping station in Hong Kong for Hongqi E-QM5 electric taxis, with a plan to expand the network across the city and extend into Southeast Asian markets.

In March, Hongqi parent FAW Group forged a partnership with emerging EV maker Leapmotor to jointly develop new energy passenger vehicles and components, including for models targeting export markets.

While Hongqi is betting its storied past will help boost sales, it’s also banking on a much more modern appeal to consumers. The carmaker says its batteries can maintain 98% of the power rate amid the -10C (-22F) to -30C temperatures that hit its headquarters in Changchun in winter.

“It could actually turn to a good selling point for Hongqi,” Zhang said. “Better late than never, right?”

--With assistance from Chunying Zhang.

©2025 Bloomberg L.P.

 

Budweiser-maker AB InBev to invest $300 million in U.S. facilities

By Reuters

Published: May 12, 2025 

Budweiser cans run through a filling machine at the Anheuser-Busch brewery in the Van Nuys area of Los Angeles is seen Wednesday, March 2, 2011. (AP Photo/Reed Saxon)

Anheuser-Busch InBev ABI.BR said on Monday it would invest $300 million in its manufacturing operations in the United States this year amid a push for local production under President Donald Trump.

The Budweiser maker, which said it invested nearly $2 billion over the last five years in 100 facilities across the country, also announced the launch of a new plant in Columbus, Ohio.

The brewer reported a rise in first-quarter profit last week, more than double the increase expected by analysts and boosting its profit margins despite a fall in sales volumes. It said it makes nearly all its domestic sales locally,

AB InBev had previously said it was boosting investments in key brands such as Budweiser and ramping up efforts to grow at-home consumption, as spending elsewhere - including in bars - remains pressured.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Pooja Desai

U.S. Farm economy is starting to see first hits from Trump tariffs

By Gerson Freitas Jr. and Ilena Peng
Published: May 11, 2025

Workers install hanging twine in a hop field at a farm in Wapato, Washington, US, on Friday, May 2, 2025. Hops production for the United States in 2024 totaled 87.1 million pounds, down 16 percent from the 2023 crop of 104 million pounds, according to the USDA. Photographer: Emree Weaver/Bloomberg (Emree Weaver/Bloomberg)

Donald Trump’s tariffs are upending crop trading, delaying tractor purchases and constraining imports of chemical supplies into the U.S.

That’s the main message from big agricultural businesses as they report their quarterly earnings, giving an early glimpse into the far-reaching impacts of the U.S. president’s trade war.

The disruptions in global trade threaten to extend a years-long slump in the U.S. farm industry, which had already been struggling with ample supplies, depressed crop prices and rising competition from Brazil. Lack of clarity on how the Trump administration will address much-needed incentives for crop-based fuels in the next few years has added to concerns.Latest updates on commodities here

Crop traders and processors have been among the hardest-hit. Archer-Daniels-Midland Co. and Bunge Global SA saw their combined operating profits slump by about $750 million in the first quarter, with both companies citing an impact from trade and biofuel policy uncertainty.

Importers put off purchases of U.S. grain and oilseeds as Trump threatened tariffs as well as levies on any Chinese vessels docking at American ports, reducing trade flows, according to crop merchant The Andersons Inc.


“Global trade uncertainties disrupted typical grain flows and caused many of our commercial customers to focus on just-in-time purchasing,” William Krueger, The Andersons chief executive officer, said Wednesday in a call with investors.

Tractor makers CNH Industrial NV and AGCO Corp. also reported lower first-quarter sales, and warned of the potential of reduced demand for farmers, which would give them less to spend on machines to plant, harvest and treat their fields. Both companies have raised prices to ease the impact of tariffs on costs.

“Geopolitical uncertainties and trade frictions have dampened U.S. farmer sentiment recently,” AGCO CEO Eric Hansotia said during a conference call with analysts. “As a result, demand for machinery was lower in the quarter than we had expected.”

Duties also threaten to curb imports of some fertilizer and pesticide supplies. Shipments of phosphate — a key crop nourishing ingredient — into the U.S. have trailed last year’s levels because vessels have been diverted to other countries to avoid the nation’s 10 per cent tariff, Mosaic Co. said in its earnings statement.

“The phosphate market remains tight, and while tariffs could disrupt trade flows, they cannot create more phosphate supply,” CEO Bruce Bodine said on a conference call with investors.

Farmers are expected to pay more for pesticides as the U.S. relies on tariff-hit countries such as China and India for some of its supplies. Nutrien Ltd. said its branded products could potentially cost as much as 7.5 per cent more, with even higher adjustments expected for generic ingredients, as a result.

“Long story short is, we’re going to see price increases,” Jeff Tarsi, Nutrien’s president of global retail, said on a Thursday call. “Our plan is to pass those price increases through to our customers.”

Brazil is emerging as a winner from the trade tensions. Minerva SA said tariff turmoil drove increased Chinese demand and higher export prices for South American beef in the first quarter, helping lift profits for the Brazilian supplier. Meanwhile, China has effectively shut its market for U.S. meat exporters including Smithfield Foods Inc.

China, the world’s largest commodity importer, has already shifted to Brazil for a meaningful part of its soybean needs since Trump first raised tariffs on goods from the Asian nation in 2018.

“Any harmful impacts to the U.S. grower profitability stemming from tariffs and trade flow shifts” are likely to benefit Brazilian growers, Jenny Wang, executive vice president of commercial at Mosaic, said in the call with analysts.


--With assistance from Michael Hirtzer.

©2025 Bloomberg L.P.

The U.S. is on track to lose US$12 billion in travel revenue in 2025

By Bloomberg News
Published: May 13, 2025 

The U.S. is on track for a very bad tourism year.

According to new data from the World Travel & Tourism Council (WTTC), shared exclusively with Bloomberg, the country is set to lose US$12.5 billion in travel revenue in 2025, with visitor spending estimated to fall under $169 billion by year’s end. The numbers represent a decline of around 7% in visitor spending year-over-year, and a decline of 22% since tourism reached its peak in the U.S. in 2019.

This puts the U.S. in a league of its own. Out of 184 global economies analyzed by WTTC in conjunction with Oxford Economics, it’s the only one projected to lose tourism dollars this year. “Other countries are really rolling out the welcome mat, and it feels like the U.S. is putting up a ‘we are closed’ sign at their doorway,” says WTTC President and Chief Executive Officer Julia Simpson.

The consequences, Simpson says, could be devastating. “The U.S. travel and tourism sector is the biggest sector globally compared to any other country, worth almost $2.6 trillion,” she says, citing WTTC and Oxford Economics data. According to Simpson’s data, direct and indirect tourism represents 9% of the American economy. (Visitor spending is one of the “direct” parts of the travel economy, while “indirect” contributions include the knock-on effects of increased spending by hospitality professionals.) The sector employs 20 million people and creates $585 billion in U.S. tax dollars each year—7% of all tax revenue the U.S. government receives. It’s a “major mainstay of the U.S. economy,” she says.

The issues the industry faces have been years in the making. The problems began in the Biden era as a result of COVID-era travel requirements that lingered longer than they did in most other nations. Then the soaring dollar started pricing people out. “The Japanese used to visit the U.S. a lot, but the strong dollar made it quite an expensive place,” Simpson says. “Same with Europeans.”


But now, she says, a shift in people’s views is turning cracks in the American travel economy into chasms. According to international arrivals data from the U.S. Department of Commerce, travelers are already shifting their behavior as a result of the current administration’s “America First” rhetoric and policy. “What we are seeing now is a sentiment shift that’s really very sad,” Simpson says. “Legislators need not confuse the tourism sector with issues around illegal immigration. A sophisticated system can balance both without turning [the country] into an island that no one wants to visit.”

In March 2025, the most recent month for which data is available, arrivals were significantly down for all of the U.S.’s most robust visitor populations. U.K. arrivals were down 15% year-over-year; Germans were down 28%; South Korean trips declined by 15%; and other key source markets, including Spain, Ireland and the Dominican Republic, were down between 24% and 33%.

The effects won’t be felt evenly across the U.S., with the $12.5 billion deficit disproportionately affecting major U.S. gateways as well as tourism areas along the Canadian border.

Take New York City and the broader Empire State as an example. On May 8, the city’s tourism agency reversed course on its positive outlook for 2025—the year it expected to finally rebound fully from the impact of the pandemic—to forecast that it would receive 400,000 fewer tourists and $4 billion less in tourism spending than it did in 2024.

The latest projections for New York, accounting for a total of 64 million tourists this year, include estimates that 400,000 more domestic tourists—but 800,000 fewer international visitors—will visit the five boroughs. Tourists from abroad tend to stay longer and spend more, and in 2024 they represented half of the $51 billion that the city netted via tourism.

According to Governor Kathy Hochul, this slump extends to regions upstate. Some 66% of businesses in New York’s “north country,” which juts out toward Ottawa and Montreal, have already felt a “significant decrease” in Canadian bookings for 2025. In an April 29 press release, Hochul attributed that figure to President Donald Trump’s “51st state” rhetoric and the impact of tariffs. Among those north country businesses, 26% have already adjusted staffing in response to the declines.

The damage is profound. WTTC now forecasts that it will take until at least 2030 for U.S. tourism to recover to pre-COVID levels. And that’s if things don’t get worse before they get better. People in the industry, she says, have taken note of proposed legislation that would raise the cost of the Electronic System for Travel Authorization (ESTA), which is required of all travelers who plan to come to the U.S. from countries that participate in the Visa Waiver Program. It is currently $21 per traveler but could rise to $40 if the legislation is adopted.

“The thing about tourism is it’s extremely resilient,” she says. “If you push the right buttons, it will bounce back. But increasing the cost of an ESTA will only deter people further.”

It’s a cost for which the U.S. can’t easily compensate. Already, 90% of the U.S. tourism economy is made up of domestic travel—Americans vacationing within the 50 states—making it a hard sector to grow. Meanwhile, Simpson adds, every other country is making it easier for people to come visit with new perks like digitized visas. “India is gaining, the Middle East is gaining, China is gaining, Europe is doing quite well,” Simpson says. “It’s only Americans that are being left behind and losing out.”

Nikki Ekstein, Bloomberg News

©2025 Bloomberg L.P.

Nissan slashes 15% of its global work force as the Japan automaker sinks into losses

By The Associated Press
Published: May 13, 2025 

Visitors walk past Nissan signage at Nissan headquarters in Yokohama, Tuesday, May 13, 2025. (AP Photo/Louise Delmotte)

TOKYO — Nissan is slashing about 15% of its global work force, or about 20,000 employees, as the Japanese automaker reported a loss Tuesday for the fiscal year that just ended amid slipping vehicle sales in China and other nations, and towering restructuring costs.

Nissan Motor Corp. said it will reduce the number of its auto plants to 10 from 17, under what it called its recovery plan to carry out “decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.” It did not say which plants were being closed but confirmed the closures will include factories in Japan.

“We have a mountain to climb,” its Chief Executive Ivan Espinosa told reporters, stressing the task will not be easy, requiring discipline and team work. “Starting today, we build the future for Nissan.”

The job cuts to be done by March 2028 include the 9,000 head count reduction announced last year. Nissan also previously announced the scrapping of plans to build a battery plant in Japan.

Espinosa, who took the helm earlier this year, said the latest plans followed a careful review of operations, to align production with demand, including coming up with market and product strategies. Nissan will also leverage its partnerships such as the one with Renault SA of France in Europe and Dongfeng Nissan in China, he said.

The Yokohama-based automaker said U.S. President Donald Trump’s tariffs on auto imports also hurt its results.

Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded the previous fiscal year.

For the latest quarter through March, Nissan recorded red ink totaling 676 billion yen ($4.6 billion). It also said its recovery plan includes trying to reduce costs by 500 billion yen ($3.4 billion) compared to current costs.

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” Espinosa said.

“All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” he said.

But Nissan Chief Financial Officer Jeremie Papin acknowledged the automaker faces serious challenges. Nissan did not give a profit projection for the fiscal year through March 2026, citing uncertainties.

___

Yuri Kageyama, The Associated Press

Nissan posts $4.5 billion annual net loss, says to cut 20,000 jobs


By AFP
May 13, 2025


Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands - Copyright AFP Hector RETAMAL

Kyoko HASEGAWA, Tomohiro OSAKI

Japan’s Nissan posted a huge annual net loss of $4.5 billion on Tuesday while confirming reports that it plans to cut 15 percent of its global workforce and warning about the possible impact of US tariffs.

The carmaker, whose mooted merger with Honda collapsed earlier this year, is heavily indebted and engaged in an expensive business restructuring plan.

Nissan reported a net loss of 671 billion yen for 2024-25 but did not issue a net profit forecast for the financial year that began in April. It did say, however, that it expects sales of 12.5 trillion yen in 2025-26.

“The uncertain nature of US tariff measures makes it difficult for us to rationally estimate our full-year forecast for operating profit and net profit, and therefore we have left those figures unspecified,” CEO Ivan Espinosa told reporters.

“Nissan must prioritise self-improvement with greater urgency and speed.”

The company’s worst ever full-year net loss was 684 billion yen in 1999-2000, during a financial crisis that birthed its rocky partnership with French automaker Renault.

The company’s shares closed three percent higher on Tuesday after reports, later confirmed by Nissan, said it was planning a total of 20,000 job cuts worldwide.

As part of recovery efforts Nissan also said it would “consolidate its vehicle production plants from 17 to 10 by fiscal year 2027”.

Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands, while its profits are also under threat from US tariffs.

“In China, we will strengthen our market performance by unleashing multiple new-energy vehicles,” it said in a statement.

The possible merger with Japanese rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary instead of integrating under a holding firm.

Nissan has faced numerous speed bumps in recent years — including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box.

The automaker, whose shares have tanked nearly 40 percent over the past year, appointed Espinosa CEO in March.

Ratings agencies have downgraded the firm to junk, with Moody’s citing its “weak profitability” and “ageing model portfolio”.

And this month Nissan shelved plans, only recently agreed, to build a $1 billion battery plant in southern Japan owing to the tough “business environment”.

Of all Japan’s major automakers, Nissan is likely to be the most severely impacted by US President Donald Trump’s 25 percent tariff on imported vehicles, Bloomberg Intelligence analyst Tatsuo Yoshida told AFP ahead of Tuesday’s earnings report.

Its clientele has historically been more price-sensitive than that of its rivals, he said.

So the company “can’t pass the costs on to consumers to the same extent as Toyota or Honda without suffering a significant loss in sales units”, he added.

Honda Canada postpones $15-billion EV investment project in Ontario

By The Canadian Press
Published: May 13, 2025 

Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on Thursday, April 25, 2024. THE CANADIAN PRESS/Nathan Denette

TORONTO — Honda Canada is postponing a $15-billion electric vehicle investment project in Ontario, including a proposed EV battery plant and retooled vehicle assembly facility.

Honda Canada spokesman Ken Chiu says due to the recent slowdown in the EV market, Honda has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada.

Chiu says the company will continue to evaluate the timing and project progression as market conditions change.

The decision has no impact on current employment at the Honda manufacturing plant in Alliston, Ont., he added.

Honda’s EV project in Canada includes a retooled assembly plant, an electric vehicle battery plant in close proximity, as well as two key battery parts facilities located elsewhere in Ontario.

The plan was first announced in April 2024 and was to receive support from the federal and Ontario governments.

This report by The Canadian Press was first published May 13, 2025.

Honda signals profit drop, warns of US$3 billion tariff hit

By Bloomberg News
Published: May 13, 2025 

Honda Motor Co. is expecting a ¥450 billion (US$3 billion) hit to its full-year profit as it braces for the fallout of U.S. President Donald Trump’s auto tariffs, joining rivals reeling from the trade war.

Operating profit is forecast to decline to around ¥500 billion in the current fiscal year through March 2026 — far short of analyst estimates of ¥1.35 trillion. Profit in the fiscal year ended March 31 came in at ¥1.21 trillion following a weak fourth quarter, the company said in a statement Tuesday.

“The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are made, making it difficult to formulate an outlook,” Chief Executive Officer Toshihiro Mibe told reporters. The automaker, which has already outlined plans to move production of its hybrid Civic from Japan to the U.S., is considering whether to expand U.S. production capacity in response to tariffs.

Honda joins a growing list of global automakers tallying the cost of Trump’s tariffs. General Motors Co. has slashed its full-year profit guidance by as much as $5 billion, while Ford Motor Co. is bracing for a $1.5 billion annual hit. Toyota Motor Corp. sees a $1.2 billion profit drop in just April and May. On Monday, Mazda Motor Co. said it was withholding its annual guidance until the dust settles, adding the impact from tariffs could amount to as much as $68 million in April alone.

The U.S. represents the biggest market for five of Japan’s largest automakers, including Honda. The company sold roughly 1.4 million cars in the U.S. in 2024, according to Bloomberg Intelligence, almost 40% of which were imported.

Honda also Tuesday said it has postponed plans to establish an electric vehicle supply chain in Ontario, Canada, by two years, owing to a downturn in demand.

The previously announced plan included a battery plant and an EV factory with an annual production capacity of 240,000 vehicles.

“The growth of the electric vehicle market has slowed more than initially expected, making it difficult to anticipate further progress,” Mibe said. Changes to the company’s electrification strategy will be explained in detail during a business update on May 20.

While Honda may have dodged a bullet by walking away from a deal to tie up with struggling rival Nissan Motor Co., it will have to go it alone as the global auto market is roiled by the U.S. tariffs and intense competition in China.

Honda had signed an agreement with Nissan in December to combine both brands under a single holding company. But negotiations quickly began to deteriorate, and ultimately the alliance was formally ended within a few months. Disagreements between the two legacy brands, who refused to meet on equal footing, drew to a swift close what in theory could have created a titan capable of competing with Toyota and other industry heavyweights.

In one bright spot, Honda’s motorcycle business accounted for half its operating profit, and grew during the previous fiscal year. Its auto segment decreased, mostly in China.

Both trends are expected to continue during the current fiscal year, the company said.

Nicholas Takahashi, Bloomberg News

©2025 Bloomberg L.P.

Honda forecasts 70% net profit drop citing ‘tariff impact’

By AFP
May 13, 2025


Honda said it expects net profit of 250 billion yen ($1.7 billion) in the year to March 2026 - Copyright AFP Richard A. Brooks

Tomohiro OSAKI, Hiroshi HIYAMA

Japan’s Honda Motor on Tuesday forecast a 70 percent drop in net profit for the 2025-26 financial year as US trade tariffs weigh on the global auto industry.

The announcement comes after rival Toyota, the world’s top-selling carmaker, predicted a 35 percent year-on-year drop in annual net profit because of the levies and other factors.

Honda said it expected net profit of 250 billion yen ($1.7 billion) in the 12 months to March 2026.

“Tariff impact and recovery efforts” will have a negative effect on operating profit, it warned, estimating they will cost the company around 450 billion yen over the year.

In an attempt to rev up the US auto industry, President Donald Trump last month imposed a 25 percent toll on imported vehicles, dealing a major blow to Japanese carmakers.

“The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are being made, making it difficult to formulate an outlook,” CEO Toshihiro Mibe told reporters Tuesday.

Honda, Japan’s second-biggest automaker after Toyota, logged net profit of 835 billion yen in the past financial year, a drop of almost 25 percent on-year and well short of its February forecast of 950 billion yen.

“Our automobile business experienced a decline in sales volume mainly in China and the ASEAN region” in Southeast Asia, Mibe said.

It was also “impacted by increased incentives for EV sales in North America”, although “hybrid vehicle sales expanded”.

But Honda may still have a better chance of weathering Trump’s tariff onslaught than its competitors in Japan, analysts said.

Late last month Trump softened the auto tariffs by signing an executive order to limit the impact of overlapping levies on carmakers.

He also said he would give the industry a two-year grace period to move supply chains back to the United States.

This is good news for Honda, which builds more than 60 percent of the vehicles it sells in the United States in the country.

That is “the highest percentage” of all major Japanese automakers, Bloomberg Intelligence auto analyst Tatsuo Yoshida told AFP ahead of the results.

That means the impact from tariffs will be “comparatively smaller for Honda”, he added.