Current Events in April 2025

Key takeaways:

• Sources indicate Volvo will cancel U.S. orders for the S90 next year, citing the low sales volume of the model in the American market.
• In response to the Trump administration's tariffs, Volvo is also reducing incentives on existing U.S. inventory and exploring increased production at its South Carolina plant.
• The decision highlights the growing impact of the escalating trade war on global automakers with production in China and underscores Volvo's strategic shift towards its higher-volume crossover models in the U.S.

If you've always dreamed of having a big, luxurious Volvo S90, dream on but you'll soon have to confine your shopping to the used-car lot. 

Volvo is reportedly planning to discontinue U.S. sales of the S90, which is manufactured in China, as trade tensions between the United States and China intensify and as the automaker grapples with newly imposed tariffs on Chinese goods, including vehicles.

​Automotive News quoted a person familiar with Volvo’s strategy, who wished to remain anonymous, as saying that the S90 is a "low-volume car for the U.S.," with only 1,364 units sold in 2024.

"Rather than deal with [the tariffs], they are just going to cut it out," the source explained. The company will reportedly focus on its more popular XC90, XC60, and XC40 crossover SUVs in the American market. A Volvo spokesperson declined to comment, Automotive News said.

President Trump on Wednesday significantly escalated trade tensions by slapping a 125 percent tariff on goods made in China, a fivefold increase from the 25 percent levy applied to vehicles from other countries on April 3rd. Those tariffs will remain in effect even after a temporary pause on reciprocal duties with most other nations.

A slow but steady retreat

Discontinuing the S90 would mark Volvo's further retreat from the shrinking U.S. sedan market. Last summer, the automaker ceased U.S. sales of the S60, which was produced in South Carolina.

Despite a 7.5 percent increase in U.S. sales during the first quarter, reaching 33,285 vehicles, Volvo's global deliveries saw a 5.7 percent decline, with slumps in key markets like Europe and China. The heavy reliance on imports – 96.8 percent of Volvo's U.S. sales in the first quarter were imported from Europe or China – exposes the company to significant risks from the Trump administration's aggressive trade policies.

In addition to the S90, Volvo's new EX30 subcompact crossover is also sourced from China, although production of that model is slated to expand to Ghent, Belgium, later this year.

Volvo said, however, that it is "ramping up" production of the electric EX90 crossover at its currently underutilized Ridgeville, S.C., assembly plant to boost volumes and reduce costs.

To deal with the increasing costs of importing vehicles into the U.S., Volvo is also adjusting its incentive strategy. While sticker prices are not expected to change for now, the automaker plans to implement "minor incentive changes," a company executive said. This includes reducing discounts on imported vehicles already in the U.S. before the tariffs took effect. The company intends to use these savings to offset the financial burden of future imports subject to the higher tariffs.

UPDATE: Despite the pleas of consumer advocates the House voted largely along party lines to trash the consumer protection overdraft bill, with Republicans mostly voting to do so and Democrats largely opposing it. 

Key Points:

• New York AG Letitia James and 22 other attorneys general are urging the U.S. House to reject a resolution that would reverse the Consumer Financial Protection Bureau’s 2024 rule capping overdraft fees.

• The CFPB rule applies only to large banks with over $10 billion in assets, limiting excessive fees that can damage credit and force account closures.

• Critics say overturning the rule would prioritize bank profits over consumers, as overdraft fees often exceed the overdraft amount and disproportionately hurt low-income Americans.

A coalition of 23 attorneys general, led by New York Attorney General Letitia James, has sent a letter to U.S. House leaders urging them to vote against a resolution that would overturn a key Consumer Financial Protection Bureau (CFPB) rule limiting overdraft fees charged by the nation’s largest banks.

The CFPB rule, finalized in 2024, aims to rein in excessive overdraft fees, which have long been a lucrative but controversial source of revenue for banks. It applies only to banks with more than $10 billion in assets and is designed to protect consumers from predatory charges when they accidentally overdraw their checking accounts.

“Overturning this rule will only do one thing: help big banks profit at your expense,” said AG James in a statement. “Accidentally overdrawing your account by a few dollars shouldn’t result in an outrageous fee.”

Banks favor scrapping the consumer protection measure, which they say does more harm than good. "It’s important to remember that government-imposed price controls only harm the consumers they’re purported to help," the Consumer Bankers Association argues in a statement on its website. 

Overdraft fees: A costly burden

The average overdraft fee is around $35, often far exceeding the actual overdrawn amount. In 2023 alone, U.S. banks collected $5.8 billion in overdraft-related revenue. According to the AG coalition, a $35 fee on a $26 overdraft—typically repaid within three days—is equivalent to an annual interest rate of 16,000%.

The attorneys general argue that such fees are not only excessive but also disproportionately harm low-income consumers, frequently leading to credit damage and involuntary account closures that can push people out of the banking system altogether.

The CFPB rule, if preserved, would force banks to treat overdraft fees like interest on a loan, making their true cost more transparent and subject to regulatory scrutiny.

All eyes on the House

The House is expected to vote on House Joint Resolution 59, which would nullify the CFPB’s overdraft rule. The Senate narrowly passed its version last month in a 52–48 vote, with Republican Senator Josh Hawley (Mo.) joining Democrats in support of the consumer protection.

Supporters of the CFPB rule point out that many major banks — including Citigroup, Capital One, and Ally Bank — have already eliminated overdraft fees voluntarily, demonstrating that such charges are not essential for maintaining basic banking services.

Joining AG James in signing the letter are attorneys general from California, Illinois, Massachusetts, North Carolina, and other states, as well as the Hawaii Office of Consumer Protection.

With tens of millions of consumers affected by overdraft policies each year, the outcome of this vote could have major implications for bank customers nationwide — particularly those living paycheck to paycheck.

Key Points:

• Beginning May 7, 2025, the TSA will enforce Real ID requirements at airport security for domestic travel.

• Only Real ID-compliant licenses or approved alternatives like passports will be accepted at checkpoints.

• Millions of Americans still lack compliant IDs, raising concerns about delays and disruptions at airports.

After nearly two decades of delays, the long-anticipated Real ID enforcement deadline is finally approaching — and airline passengers who aren't prepared may find themselves grounded.

Starting May 7, travelers flying within the United States will need to present a Real ID-compliant driver’s license or another approved form of identification at Transportation Security Administration (TSA) checkpoints.

The requirement, passed by Congress in the wake of the September 11, 2001, terrorist attacks, is intended to strengthen national security by standardizing the process for issuing state IDs.

Are you Real ID-Ready?

As of early 2024, only about 56% of IDs nationwide met Real ID standards, though TSA says about 80% of current travelers are presenting acceptable identification. That still leaves a significant number of people who may be turned away from security checkpoints if they attempt to fly without the right credentials.

“I do anticipate some disruption,” said Rich Davis, senior security adviser at International SOS. “It’s going to be a little bit of a stressful day or 10.”

To check whether your license is compliant, look for a star in the upper corner — often a black or gold star, or a star inside a circle or bear. If your license lacks this symbol, it won’t be accepted for air travel after May 7.

What counts as approved?

If you don’t have a Real ID, you’ll need to present another accepted form of identification, such as:

• A valid U.S. passport or passport card

• A DHS Trusted Traveler card (like Global Entry or Nexus)

• A Department of Defense or Veteran Health ID card

• Identification issued by a federally recognized tribal nation

• Enhanced driver’s licenses from certain states

• Foreign passports and permanent resident cards

A temporary paper license issued after applying for Real ID is not accepted, so travelers should apply at least two weeks in advance to allow time for processing and mailing.

Prepare for crowds at the DMV

State motor vehicle departments are already experiencing long lines and limited appointment availability as the deadline nears. While AAA branches in some states can process Real ID applications, not all do, and non-members may face additional fees.

“If you don’t have a trip coming up, consider waiting until after May 7 to avoid the rush,” said AAA spokeswoman Aixa Diaz.

Until then, TSA is urging Americans to double-check their ID before heading to the airport — or risk missing their flight entirely.