Detroit’s Big 3 Furious After Trump’s Trade Deal With Japan

Japan and its automakers are celebrating a freshly inked trade deal between the country and US that dramatically reduces the tariffs on its exports to America. But that same deal has left Detroit’s automakers apoplectic with rage because their own vehicles could now be subject to higher tariffs than those shipped in from Asia.

Related: Stellantis Shipments To North America Fell Off A Cliff In Q2

This week’s agreement means goods coming to the US from Japan will be tariffed at 15 percent, down from the current 25 percent level. Stock in Japanese automakers leapt at the news, Toyota’s climbing 15 percent and Mazda’s surging 17 percent.

Lower Tariffs, Rising Tensions

But under those terms cars imported to the US from Japan would attract a lower duty than those from Canada and Mexico, where Detroit-based brands build some of their vehicles. President Trump has threatened to push tariffs on goods coming from Mexico to 30 percent and those from Canada to 35 percent starting August 1.

The White House called the Japan deal “a historic win for American automakers by putting an end to Japan’s unfair auto trade barriers for American-made cars,” insinuating that the agreement was good for Detroit because it would now be able to sell more vehicles in Japan.

However, far more cars are sent from Japan to the US than flow the other way – auto exports made up more than 28 percent of all shipments to America in 2024, according to customs data reported by CNBC.

Detroit’s car industry was rather less enthusiastic than The White House, telling Reuters, “any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.”

Mounting Costs and Global Unease

GM says tariffs have already cost it $1.1 billion in the second quarter of 2025 and could cost it $5 billion by the end of 2025. The US-Japan agreement rubs salt in a wound that’s already sore after the UK negotiated a 10 percent tariff on its goods.

Meanwhile, European carmaker are also anxious to strike a deal, but discussions between the EU and the US haven’t proved fruitful and Trump recently threatened a 30 percent tariff on goods from the bloc.

The Weirdest Microcar Ever Wears A Bowtie And Top Hat Without Shame

Tiny, quirky cars have always fascinated enthusiasts, but few are as delightfully odd as the Cyclops II. What began as a fictional design in a 1957 satirical piece by cartoonist Stan Mott for Road & Track was soon made real by the magazine itself. Since then, several replicas have been built, each one embracing the car’s playful absurdity. On September 21st, one of these rare examples will cross the auction block.

Also: Rare Corbin Sparrow Microcar Is A Museum Piece Small Enough For Your Living Room

This Cyclops II is being sold as a part of Larry Klairmont’s expansive car collection and has a unique finish inspired by a tuxedo-wearing magician. As such, the lower part of the body is finished in black, while the upper half is painted in white. There’s then a red pinstripe running around the exterior and a large red bowtie up front. The microcar even wears a top hat.

Small Size, Big Personality

The Cyclops makes a BMW Isetta seem like a Rolls-Royce. This tiny microcar sits on miniature wheels with white shrouds, and it doesn’t even look like it would be drivable. However, it is fully operational and has a cabin just big enough for two occupants, though only if they sit in a posture best describe as an upright fetal position.

Under the tiny bodywork sits a chain-driven, single-cylinder Briggs & Stratton engine producing just 6.5 horsepower. While the original Cyclops II could reportedly reach speeds up to 20 mph (32 km/h), this example may be a bit slower. Between the top hat and bowtie, the added aerodynamic drag might be more than the engine can manage.

Mecum Auctions

Compact but Crowd-Pleasing

According to Mecum Auctions, this Cyclops II measures just 52 inches tall, 48 inches long, and 38 inches wide. Despite its size, the car has made appearances at events like the Rallye Monte Carlo and the US Grand Prix at Watkins Glen, proving that charm sometimes outweighs practicality.

Nearly 300 vehicles from Klairmont’s collection will go up for auction this September through Mecum. You can view the full listing on their website over here.

Mecum Auctions