The Daily Chase: Chinese EV tariffs coming, retail sales on track to tumble

Here are five things you need to know this morning.

Canada preparing to put tariffs on Chinese EVs: Bloomberg is reporting that the federal government is preparing new tariffs on Chinese-made electric vehicles, aligning itself with recent levies implemented in the U.S. and EU. Exact details still aren’t clear but the government is expected to soon launch consultations on where to set them, according to unnamed officials who spoke to Bloomberg on condition of anonymity. In the U.S., the levy on some EVs is as much as 102 per cent, while the EU tariffs top out at 48 per cent.

Retail sales jumped in April but set to plunge again in May: Statistics Canada released new retail sales numbers this morning and while sales grew by 0.7 per cent in April, matching expectations, the data agency says preliminary data suggests they wiped out that increase in May with a 0.6 per cent decline. If May’s forecasted decline comes to pass, that means retailers will have posted a sales decline in every month except for one this year. That’s a sign of a cooling economy and stretched consumer and likely gives the Bank of Canada more leeway to cut lending rates more times this year.

Mortgage lenders link up as Nesto buys CMLS: There’s an interesting development in Canada’s mortgage industry afoot as online lender Nesto is buying up CMLS to expand its mortgage lending business into the commercial space. Privately-held Nesto currently targets digitally focused borrowers seeking alternatives to Canada’s big banks. The deal gives Nesto a foothold into commercial mortgages, a market where they are not currently a factor but CMLS has been in since its founding in the 1970s. We’ll speak to the CEO of Nesto about the rationale for the deal on The Open this morning.