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

Lucid Air Gains New Feature You’d Have To Be Stupid To Use

The Lucid Gravity is the brand’s white knight, but the Air is rolling into 2026 with a handful of updates. The biggest is access to the Tesla Supercharger network, although you’d have to be dumb or desperate to use it.

While that sounds odd, let us explain. Starting on July 31, Air owners can use a $220 NACS adapter to gain access to more than 23,500 Tesla Superchargers. That seems fantastic, but the Air is only capable of charging at speeds up to 50 kW. This means it could take up to an hour to gain 200 miles (322 km) of range.

More: Lucid Air Drivers Will Soon Be Passengers In Their Own Cars

That’s ridiculous for a ‘fast charger’ and you’d be far better off using a traditional CCS charging station. Depending on the trim, the Air supports a DC CCS fast charging capability of up to 300 kW and that’s six times higher than at a Tesla Supercharger.

Despite being terrible, Lucid’s Emad Dlala claimed “Access to the Tesla Supercharging network … is yet another major milestone.” However, if there are other alternatives, you should avoid Superchargers like the plague.

Besides Supercharger access, the 2026 Air Pure comes with an improved air conditioning compressor from the Gravity. It promises improved cooling as well as quieter operation.

Buyers will also find a newly standard Lucid Mobile Charging Cable Kit and optional 19-inch Aeronaut wheels, which are available in Platinum or Stealth. The Comfort and Convenience Package has also been updated to include a rear center console display and storage bin.

The $79,900 Air Touring builds on that and features higher density battery cells. They help to increase the EPA-estimated range over 6% to 431 miles (694 km).

Last but not least, the Air Grand Touring now comes standard with 20-way power front seats with heating, ventilation, and massage functions. Lucid said they “make road trips in the industry’s longest range electric vehicle, at up to 512 miles (824 km) of EPA-estimated range, even more comfortable and relaxing.”

2026 Lucid Air Pricing

Tesla’s Cybertruck Incentives Look Like Panic Sales Dressed Up As Deals

Come September 30, not a single electric vehicle in the United States will qualify for a federal tax credit. As that deadline approaches, Tesla appears increasingly motivated to clear out as much inventory as possible.

The company has rolled out a number of incentives across its lineup, with a particular focus on the slow-selling Cybertruck. Even so, it’s unclear whether these perks will be enough to boost demand.

Review: GWM Ora GT Proves The Chinese Mean Business

There are dozens of Cybertrucks in Tesla’s current inventory, some of which are eligible for the federal EV tax credit, and some of which aren’t. Regardless, almost all of them are being sold with generous price cuts, with some valued at upwards of $3,000. Eligible vehicles can get the tax credit regardless of whether they purchase the electric pickup or lease it.

In case discounts and credits aren’t enough to convince people to get behind the wheel of a Cybertruck, there’s another incentive on offer. All Cybertrucks that are leased from Tesla’s current inventory now come standard with a 20-inch Cyber Wheel upgrade as standard, complete with all-terrain tires.

0 Percent Financing, With Conditions

In addition, the Cybertruck is available with 0 percent APR financing. However, this is only available for “well-qualified buyers with excellent credit” who order a new Cybertruck with Full-Self Driving and provide a minimum down payment of 4 percent on terms of up to 60 months.

Tesla has also started advertising several offers that apply across its range, including for the Cybertruck. For example, all military members, first responders, teachers, and students can receive a $1,000 discount for being ‘American Heroes,’ and every new Tesla includes a free one-month trial of Full Self-Driving.

Free FSD Transfers

Perhaps the most intriguing offer currently available is that Full Self-Driving can now be transferred to a new vehicle free of charge. Usually, FSD is locked to the vehicle, rather than the owners who have paid for it. During promotional periods like this, Tesla often offers free transfers of FSD for brief periods, but this appears to be the first time the Cybertruck has been included. While that’s a step in the right direction, Tesla should make FSD free to transfer for all owners, all the time.

Trump’s Trade War Just Cost GM Over $1 Billion

President Trump’s trade war continues to cause self-inflicted injuries as American companies are getting slammed by higher fees. This includes General Motors, which revealed tariffs cost them $1.1 billion in the second quarter.

All told, the automaker is expecting tariffs to cost them between $4 and $5 billion this year alone. That’s a staggering figure and one that will likely result in price increases.

More: GM Needs A Corvette Turnaround As Sales Crash In First Half

Tariffs aside, the company earned $47.1 billion in revenue in the second quarter and had an adjusted EBIT (Earnings Before Interest and Taxes) of $3 billion. GM went on to note the latter figure decreased primarily due to tariffs.

In North America, the company reported net revenues of $39.5 billion. This was aided by record crossover sales as well as strong demand for trucks. U.S. dealer inventories were also down in Q2, while EV sales were up significantly.

Other notable takeaways include lower than average incentive spending and average transaction prices in excess of $51,000. The automaker said this shows “robust demand across our portfolio.”

While the elimination of the clean vehicle credit will likely cause chaos, GM noted second quarter EV sales were up 111% from a year ago and they controlled 16% of the U.S. EV market.

Chevrolet became the second best-selling EV brand as sales jumped 146% in Q2. This is largely due to the affordable Equinox EV, which is the third best-selling electric vehicle in America so far this year. The company went on to note Cadillac is the best-selling electric luxury brand and the 5^th largest EV brand in America – including both luxury and mainstream brands.

In a letter to shareholders, CEO Mary Barra acknowledged slower EV growth. However, she said “We believe the long-term future is profitable electric vehicle production, and this continues to be our north star. As we adjust to changing demand, we will prioritize our customers, brands, and a flexible manufacturing footprint, and leverage our domestic battery investments and other profit-improvement plans.” Speaking of flexibility, Barra noted ICE models have a “longer runway” than initially expected.

Lead image credit: White House photo

This Could Be The World’s Most Valuable Ferrari F40

Some Ferraris are legends, but a few go even further into the realm of myth. While some may consider the F40 as the finest Prancing Horse ever built, there’s an even rarer and more desirable version.

Built to take the F40 racing on both sides of the Atlantic, the F40 LM is among the rarest and most coveted models to wear the world-famous badge. One of these highly sought-after machines is heading to auction during Monterey Car Week next month.

Also: Ferrari F40 Crippled In Hit-And-Run Crash. Can You Identify The Driver?

Just 19 examples of the F40 LM were produced by Michelotto, developed specifically for American IMSA competition and the European FIA-GT series. This particular car is number 14 of those 19 and is a rare example built to GTC specification, making it the most powerful of all the F40s. If RM Sotheby’s estimate turns out to be accurate, the car could sell for between $8.5 million and $9.5 million.

A Racing Pedigree with an International Past

This F40 LM is chassis number 95448 and was delivered new to a buyer living in St. Moritz, Switzerland, who owned several other Ferraris at the time. Walter Hagmann kept the car until 2002, before buying it back and selling it again in 2007. Over the following years, the new owner drove it at various racing events in Italy, France, Spain, and the Czech Republic.

RM Sotheby’s

The auction house notes that in 2014, the F40 LM was sent back to Michelotto, where the engine and gearbox were overhauled and the car was refinished in the original shade of Rosso Corsa. It has since been owned by collectors in Las Vegas, Germany, and Austria.

To get it ready for August’s sale, it was serviced with new fuel bladders, timing and accessory belts, spark plugs, and fuel filters. It also received new Michelin Pilot Sport GT Slick S7M tires.

More Power, Less Weight, Same Iconic Formula

Like the regular F40, the LM uses a 2.9-liter twin-turbocharged V8. However, upgrades made to it allow it to churn out a monumental 760 hp, or 289 hp more than the standard model. The LM also weighs roughly 700 lbs (317 kg) less than a stock F40, tipping the scales at just 2,315 lbs (1,050 kg) with fluids.

If you’re the type who likes their Ferraris loud, rare, and capable of outrunning your accountant’s panic attacks, you might want to take a closer look. You can check out the listing here. Just don’t blame us if you start rearranging your retirement plan.

RM Sotheby’s

Toyota’s Biggest SUV Brings More Luxury At A Higher Cost

Following hot on the heels of the Tundra, Toyota has introduced the latest Sequoia. The body-on-frame SUV gets a little more expensive and luxurious for 2026.

Since this is a model year update, the only notable styling change is the addition of a Wave Maker paint job. It’s exclusive to the Sequoia TRD Pro, which starts at $80,765 and undercuts the Ford Expedition Tremor.

Review: The Toyota Sequoia Packs 437 Hybrid Ponies And Looks Good Doing It

Bigger changes occur inside as all trims now come equipped with a power-folding third-row seat. On the topic of seats, the Sequoia Limited ditches SofTex upholstery for proper leather. It’s a welcome change and buyers will find black leather with white contrast stitching or grey leather with black stitching.

The range-topping Capstone has also been revamped as its black and white interior gives way to a new shale cabin. The stylish seats sport textured accents, brown flourishes, and Capstone badging. We can also see grey walnut wood trim instead of the old brown walnut.

A hybrid powertrain resides under the hood and consists of a twin-turbo 3.4-liter V6, a 1.87 kWh battery pack, and a ten-speed automatic transmission with an integrated electric motor. This enables the model to produce a combined output of 437 hp (326 kW / 443 PS) and 583 lb-ft (790 Nm) of torque. Customers can get rear or four-wheel drive, but neither is particularly efficient as the Sequoia tops out at 21 mpg city, 24 mpg highway, and 22 mpg combined.

Pricing starts at $64,025 which is an increase of $1,600. The Limited climbs from $68,825 to $69,795 for a smaller $970 increase, while the Capstone jumps $520 to begin at $84,435.

2026 Toyota Sequoia Pricing

The Electric M3 Ushers In A New Era Of BMW Design

With the release of its all-electric M3, BMW’s M division will embark on a brave new future and try to convince gearheads it’s possible to have a fun and engaging EV. While it’ll be some time before anyone gets behind the wheel of this promising new model, recent spy photos offer a surprisingly detailed glimpse at what’s to come. So far, things are looking encouraging.

Read: This BMW M3 May Be The Heaviest Yet But Also The Quickest Ever

Visually, the electric M3 will mark one of the first entries in BMW’s Neue Klasse lineup, bringing with it a noticeably different design language compared to today’s M3. One of the biggest changes is at the front. The oversized and much criticized kidney grilles from the six-cylinder version appear to be on the way out.

A New Take on the Front End

Based on prototype sightings, these renderings from Kolesa suggest the electric M3, possibly named the iM3, will feature sharp headlights integrated cleanly into slim, illuminated kidney grilles. It looks excellent, which isn’t a word we’re used to using when it comes to modern BMW designs. The publication has also imagined the new sports sedan with a large secondary lower grille finished in black, adding to the aggressive looks.

The same testers also hint that the side profile of the new model will differ significantly from the G80 M3, drawing more from the design of the latest 5-Series. This will include door handles that sit flush with the bodywork and simpler lines. Then there’s the rear.

The taillights of the new model should be similar to those from the recent Vision Driving Experience demonstrator, but if these renders prove accurate, they’ll be slightly smaller and slimmer. A sculpted bumper with a pronounced diffuser gives the rear a more commanding and purposeful appearance.

Powertrain Possibilities

BMW hasn’t shared official specs for the iM3 just yet, but all signs point to a quad-motor layout. While the theoretical output of this setup could reach a staggering 1,341 horsepower, equivalent to one Megawatt, the Germans are expected to dial it back to somewhere in the range of 700 to 800 horsepower for production. Even at those numbers, it would make this the most powerful M3 to date, and possibly the quickest as well.

Toyota Tundra Gets More Colorful And Lavish For 2026

The Toyota Tundra is reaching middle age and gaining a number of new features in an attempt to stay fresh. Unfortunately, the truck is also getting more expensive as pricing climbs from $40,090 to $41,260.

Starting outside, there isn’t much to report besides a new Wave Maker paint job that is exclusive to the TRD Pro. Furthermore, all models now come equipped with a tow hitch and 7/4 pin connector.

Review: The Toyota Tundra Is A Tougher, More Capable Pickup With Available Hybrid Power

Rounding out the exterior styling changes is a revamped SX Package, which now comes with larger 20-inch wheels. It also looks like the TRD Rally Package can be combined with a 3-inch TRD lift kit and the Tow Tech Package.

Moving inside, the Limited trades SofTex upholstery for new black or grey leather with contrast stitching. Likewise, the $80,800 Capstone boasts new Shale leather seats with textured accents and brown flourishes.

Speaking of seats, the Tundra TRD Pro can be equipped with newly optional ISO Dynamic chairs. They echo the ones found on the Tacoma TRD Pro and promise to enhance comfort when off-roading.

Buyers will also find upgraded climate control systems as trucks with a single-zone setup now have a “smartflow management system.” Double cab trucks also get a little nicer thanks to rear air vents on the center console.

Under the hood, there are two familiar engines including a twin-turbo 3.4-liter i-FORCE V6 with 389 hp (290 kW / 394 PS) and 479 lb-ft (649 Nm) of torque. Customers can also get a hybridized i-FORCE MAX producing 437 hp (326 kW / 443 PS) and 583 lb-ft (790 Nm) of torque. Both are connected to a ten-speed automatic transmission, which can be paired to an available four-wheel drive system.

While the engines carryover, Toyota has eliminated the 22.5 gallon gas tank that used to come standard on the SR and SR5. Now, all Tundras come equipped with the larger 32.2 gallon tank.

2026 Toyota Tundra Pricing

When You Tow A Ferrari And A Benz Like It’s A Fridge This Is What Happens

If you’re attempting to tow a massive car trailer, a Ferrari 488 GTB, and a Mercedes-Benz GLA, you’d better make sure you set everything up correctly and do not exceed the permitted towing rating of the vehicle you’re driving. It seems the driver of a VW Touareg in Europe recently discovered this the hard way and will probably be left to have a very awkward conversation with their insurer.

Also: This Just Might Be The Most Expensive Oops Of The Year

Details about this incident are limited, but it looks to have happened over the weekend, somewhere in Serbia. According to the Redditor who posted about it, he overtook the Touareg and the trailer shortly before the crash, noting that the SUV was “clearly struggling” and “barely pulling the load.” He added that the trailer was also swaying left to right.

A Tire Blowout and a Sudden Loss of Control

Shortly afterwards, disaster struck. According to authorities, one of the SUV’s tires blew, and it spun out of control. The trailer detached from the VW and flipped onto a grass embankment next to the road. Remarkably, the red Mercedes GLA and the yellow Ferrari being towed remain strapped in, but were left to dangle upside down.

While the Touareg is quite a capable tow vehicle and can pull as much as 3,500 kg (7,716 lbs), it’s almost certain that figure has been exceeded. Both the Ferrari 488 and first-gen Mercedes GLA weigh around 1,500 kg (about 3,300 lbs), and the trailer almost certainly exceeds 500 kg (1,102 lbs).

Some commentators have speculated that the weight on the trailer may not have been distributed correctly, and there are no signs that any safety chains have been used to ensure the trailer remained firmly attached to the Volkswagen.

Read: Driver Sues Ferrari After Alleged Brake Failure Caused 488 To Fall Into Pond

It’s difficult to determine the full extent of the damage done to the Mercedes and Ferrari, but both of their roofs have almost certainly been crushed. If so, they’ll probably be written off by their insurer – assuming they were insured to begin with, of course.

Lead image Reddit /u PutridPreparation424