Over the weekend, Trump followed through on his long-threatened 25% tariffs on imports from Canada and Mexico, as well as a 10% duty on goods from China. Energy resources from Canada will be subject to a lower 10% tariff.
While crude markets will see higher prices and consumers will be forking out more for gasoline and diesel costs in the near term, the spike is only temporary, oil watchers told CNBC.
“While the initial move on crude oil is upward, a cycle of tariffs and retaliatory actions by Canada, Mexico, China and perhaps others in the future could lead to a worldwide recession, causing oil prices to plummet,” Andy Lipow, President of Lipow Oil Associates told CNBC.
The tariffs have not resulted in any oil supplies being taken off the market, and will result in a redistribution of supplies as Mexico and Canada look to divert their volumes to Europe and Asia, Lipow added. Meanwhile, U.S. refiners will be looking to process more domestic crude oil while seeking Middle East alternatives.
Canada to bear the brunt
Both Canada and Mexico have limited spare refining capacity or alternative export routes, and the tariffs will likely push oil producers in both countries into steep price discounts, said Saul Kavonic, head of energy research at MST Marquee.
Canadian oil producers will eventually bear the brunt of the tariffs’ burden with a $3 to $4 per barrel discount on Canadian crude given the limited alternative export markets, Goldman Sachs wrote in a note dated Sunday.
In the medium term, Goldman’s analysts also expect that broad tariffs will impact global GDP as well as oil demand, weighing down oil prices.
Additionally, global oil prices could drop further after the next quarter as tariffs worsen the demand picture and OPEC+ faces increasing pressure from Trump to reverse production cuts, said Kavonic. Trump recently stated that he is urging Saudi Arabia and OPEC to lower oil prices.
The oil cartel, which is slated to meet on Monday, has yet to respond to Trump’s request. OPEC+ has been withholding 2.2 million barrels per day from the global market to stem falling prices. In December, the group decided to extend its production cuts through at least March 2025 before phasing them out gradually over the course of a year.
The new Renault Filante Record 2025 concept is a racy, aerodynamically-sculpted piece of rolling electric lab equipment designed to push the envelope of energy efficiency and set new records for power consumption and range.
Built around the same 87 kWh li-ion battery as the Renault Scenic E-Tech electric car, the Renault Filante Record 2025 is a single-seat technology demonstrator that uses minimalist design engineering and lightweight, composite materials to bring its weight down to an impressive 1000 kg – a number made even more impressive when you realize that fully 600 kg of that mass comes from the battery!
“We designed this vehicle as a sculpture in motion. Inspired by fighter planes and the speed records of the nineteenth century,” says Sandeep Bhambra, Director of Advanced Design, Renault and Ampere. “(The concept) reflects both performance and timeless elegance. Every inch of the surface was crafted to capture the light and showcase the body lines, which appear to melt into the air. The blue windows and colour palette further underline this light and airy impression. The design as a whole seeks to convey an impression of flow and lightness.”
1926 Renault 40 CV des records
Inspired by the 1926 Renault 40 CV des records, which set a number of speed records at the track in Montlhéry, France, between 1924 and 1926, the Renault Filante Record 2025 concept features a special new “Ultraviolet Blue” paint that flops between blue and purple, depending on the viewing angle. The paint serves to give the the impression of movement, even when it’s sitting still.
Renault says the final design was a collaborative effort between the stylists and aerodynamicists and meant to invoke the same sense of newness and speed as the now 100-year-old 40 CV des records. Adding to that “vibe” are bespoke, 3d-printed parts, unique friction-reducing prototype tires, and both steer-by-wire and brake-by-wire technologies that are expected to make their way into the next generation of Renault EVs.
The concept will be on display at this year’s Rétromobile motor show in Paris from February 5th through the 9th, before real-world test sessions and the hunt for a new efficiency record begins in earnest in Q2 of this year.
Electrek’s Take
Renault – and, by extension, the Renault Group – has been making steady progress on both the electrification and autonomous vehicle fronts for years, even logging several million miles on its deployed fleet of electric semi trucks. So while it’s easy to dismiss the claims made to hype up concept cars (which are, by definition, marketing exercises), it seems just as easy to underestimate Renault and its ability to drive at least parts of its concepts to production.
Best known for offering roadside assistance plans and TripTik travel maps in the days before GPS, the American Automobile Association (AAA) is still popular, claiming more than 60 million members in the US and Canada – and now, those members will be able to get preferred pricing at ChargePoint stations.
Established in 1902 by nine motor clubs with fewer than 1,500 members, AAA today boasts more than 60 million members. For their money, AAA members get discounts on auto insurance, hotel stays, and financial services.
“AAA’s first priority is serving our members,” said Bob Huffman, Director of Roadside Programs & Benefits for AAA. “By working with ChargePoint, we are able to provide resources and services to our clubs and service providers, so they are able to best assist our members when they need us most.”
This newest arrangement with ChargePoint offers yet another benefit for AAA road-trippers, but the initial press release is somewhat light on details. It explains only that deal covers Level 2 AC charging as well as Level 3 DC fast-charging stations AAA and CAA (Canadian Automobile Association) members in need of charging infrastructure can find more information at this link.
It’s not much, in the way of information. Still, when the nation’s largest auto club is talking about EVs, it feels like we’re moving in the right direction.
Electrek’s Take
Despite those impressive stats, if you’d asked me what I knew about AAA yesterday I would have told you a story about driving a Mosler Twinstar from Florida to Las Vegas in 22 hours using a AAA TripTik and guessed they’d closed up shop sometime in the last decade.
Tesla has opened up Cybertruck leases in the US, and it is now offering free wraps, worth $6,000, on Foundation Series Cybertrucks, which Tesla is still stuck with.
The Cybertruck wasn’t mentioned once during Tesla’s last earnings call. CEO Elon Musk gave a long speech about the current state of the company and its future, and yet, he didn’t mention Tesla’s only new vehicle launched in the last 5 years.
That’s because the program has been quite disappointing.
Tesla had over 1 million reservations for the electric pickup truck and Musk said that it could see Tesla selling 500,000 units per year. Tesla built the capacity at Gigafactory Texas for a planned production of 250,000 units per year.
Yet, Tesla worked through its entire reservation backlog by selling fewer than 40,000 units, and now it is having problems selling what it currently has in inventory.
The automaker offered discounts, referral incentives, and free Supercharging for life to try to move the truck.
Now, Tesla has announced that it is launching Cybertruck leases in the US starting at $750 per month:
Leases are less profitable than outright purchases, so Tesla generally waits until demand is down before introducing them to new vehicles.
There are a few other things that could help the Cybertruck in 2025.
The electric pickup truck has become eligible for the federal tax credit. Tesla is also planning to release the cheaper RWD version of the Cyhbertruck later this year, which could increase demand, but it’s unclear by as much.
But despite all these incentives, Tesla is having issues moving the Cybertruck. The automaker is still stuck with some Foundation Series Cybertrucks, and it announced this weekend that it is even offering free wraps to those buying inventory Foundation Series Cybertrucks.
Despite all these incentives, Tesla can’t move the Cybertruck. I am curious to see how many Tesla will be able to sell in 2025.
I’ve seen estimates as low as 30,000 units, which would be even lower than last year.
There are some at 100,000 units, and while I would not have doubted 6 months ago, now I think that’s high.
There’s plenty of room to start thinking of the Cybertruck vehicle program as a failure compared to Tesla’s planned production capacity. If Tesla would have worked on a more conventional electric pickup as well as cheaper EVs, I think it would be in a much better situation today.
What do you think? Let us know in the comment section below.
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