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Trump Pushes Temporary Gas Tax Holiday

President Donald Trump has put forward a plan to suspend the federal gas tax, currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, as a direct response to fuel costs that have surged over 50% since the Iran war began on February 28.

With average gas prices hitting $4.52 per gallon as of Sunday, per AAA data, the move aims to ease the burden on American consumers grappling with the fallout of geopolitical tensions.

A full-year suspension of the tax could slash federal revenues by $36 billion to $40 billion, based on recent figures from the Highway Trust Fund, which relies on these funds to maintain highways, bridges, and public transit systems. Even a shorter one month pause would cost the Treasury between $3 billion and $3.5 billion, a significant dent at a time when infrastructure needs are pressing.

You can read more on the matter here.

What’s going on?

• Conestoga College Faces New Scrutiny Over Ex-President’s $3.8M Exit Deal (theDeepDive)

• US issues new sanctions over Iran's oil shipments to China (Bloomberg)

• The Real Test Of Trump’s Project Freedom Is Not Feasibility, It’s Durability (theDeepDive)

• NATO exercise in Latvia reveals Western alliance’s drone vulnerabilities (Globe)

• UK Moves to Nationalize British Steel, Legislation Set for This Week (theDeepDive)

• Wave of government resignations threatens Starmer’s UK premiership (FT)

• Liberals Lead Among Young Canadians Even as Youth Unemployment Hits Near-Record Highs (theDeepDive)

• Housing Market’s Spring Is Shaping Up as a Bust After April Sales Were Flat (WSJ)

• Russia Lost Territory in Ukraine for the First Time Since 2024 (theDeepDive)

• Inflation reading Tuesday expected to show prices at nearly a three-year high (CNBC)

• Canadian Home Prices Are Down 21% From Their 2022 Peak (theDeepDive)

What’s the latest?

• Tech: OpenAI says enterprise AI adoption is reaching a “tipping point” as it launches a new Deployment Company focused on helping businesses integrate AI into complex workflows. The new unit includes the acquisition of consulting firm Tomoro and partnerships with companies like Goldman Sachs, SoftBank, and Bain, as competition intensifies with rivals like Anthropic and Google in the enterprise AI market.

• Politics: President Donald Trump said the fragile U.S.-Iran ceasefire is now “on life support” after rejecting Tehran’s latest counterproposal to end the war, calling it “totally unacceptable.” Tensions remain high despite the truce extension, with ongoing clashes in the Strait of Hormuz, U.S. naval blockades, and recent attacks involving Iran, the UAE, and U.S. forces. Markets are closely watching the situation because any further escalation could sharply impact global oil supply and energy prices.

• Markets: Canada’s S&P/TSX Composite Index rose more than 100 points in late-morning trading, supported by gains in energy and base metal stocks, while major U.S. indexes also moved higher. Oil prices climbed above $97 per barrel, gold edged up, and the Canadian dollar strengthened slightly against the U.S. dollar.

• Real Estate: Luxury real estate sales in Manhattan surprisingly stayed strong despite fears over New York Mayor Zohran Mamdani’s proposed pied-à-terre tax on second homes worth $5 million or more. Contracts for homes priced above $4 million slightly increased year-over-year, while ultra-luxury deals above $10 million surged 80%, showing wealthy buyers haven’t pulled back yet. Still, major brokers and investors like Ken Griffin warn the proposed tax could eventually drive wealthy residents, jobs, and investment out of New York, with some high-end deals reportedly already being delayed as buyers wait for more details on the policy.

• Gasoline: Traders on prediction market Kalshi are increasingly betting that U.S. gasoline prices could rise above $5 per gallon after Donald Trump rejected Iran’s latest proposal to end the war. The renewed tensions pushed oil prices higher, with U.S. crude nearing $98 per barrel and Brent crude rising above $104 as fears grow that the conflict and disruptions around the Strait of Hormuz could further tighten global energy supplies.

We’re In for a Long Silver Bull Run!

The stock market and stuff

• GM Cuts Up To 600 IT Jobs In Tech Reset, Bloomberg Reports (theDeepDive)

• Orla Mining Posts Earnings Dip as Costs Climb (theDeepDive)

• Modi Urges Indians to Halt Gold Purchases for a Year to Shield Forex Reserves (theDeepDive)

• Gasoline prices set to go higher after Trump’s Iran proposal rejection. (CNBC)

• Barrick Sees Q1 Performance Slip Versus Fourth Quarter (theDeepDive)

• Cameco Halts Key Lake Production After Bridge Collapse (theDeepDive)

In the juniors

• Capitan Silver Intersects 935 g/t Silver Equivalent over 1.3 Metres, Within a Wider Zone of 157 g/t Silver Equivalent over 20.0 Metres at the Cruz De Plata Project (JMN)

• Selkirk Copper Strikes New Lens Beneath Old Pit, Launches 50,000 Metre Phase 2 Program (theDeepDive)

• Tocvan Ventures Accelerates Gran Pilar: 5,000+ Meters Drilled to Date, Historic Workings Discovered on South Block, Pilot Progresses (JMN)

FULL DISCLOSURE: Power Metallic is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Metallic. The author has been compensated to cover Power Metallic on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.