Economists warn that consumers should brace for higher prices on a range of goods, from leather products and clothing to electronics and automobiles, later this year.

Japan has a done a trade deal with Washington which will cut tariffs on the crucial car sector to 15%, in exchange for $550 billion of Japanese investment in the U.S.

President Donald Trump’s tariffs cost German auto giant Volkswagen about $1.5 billion over the first half of 2025, the company said on Friday. Sales in North America plunged 16% due primarily to U.S. tariffs, said Volkswagen, which owns a host of brands including Audi, Lamborghini and Porsche.

But on Friday, the company told investors to expect an operating return on sales — a measure of operating profit — of between 4 and 5 per cent, compared with a range of 5.5 to 6.5 per cent previously.

President Trump said he's considering using money generated by U.S. tariffs on imports to offer a "little rebate" to Americans.

President Donald Trump said on Friday that he was contemplating sending rebate checks to Americans using tariff revenue.