
Live updates: Trump to discuss trade with British Prime Minister Keir Starmer in Scotland
During the trip, Trump has also visited Trump golf properties as his family's business prepares to open a new Scottish course bearing his name in August.
Critics argue the overseas trip — with its entourage of advisers, White House and support staffers, Secret Service agents and reporters — is an example of Trump's blending of presidential duties with promoting his family's business interests. The White House has called the visit a working trip.
Trump will embark on a formal state visit to the U.K. later this year.
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The COVID pandemic turbocharged auto inflation due to supply chain disruptions, parts shortages, stronger demand for non-urban transportation, and other factors. Costlier new cars increased demand for used cars, fueling inflation there, as well. More expensive parts and higher repair costs caused a surge in insurance premiums, which have doubled during the last 10 years. The charts below show the trends. Auto inflation has stabilized — but prices aren't coming down. They're basically stuck at new, higher levels. The only real break for drivers has been gasoline prices, down about 10% during the last year, to a national average of about $3.15 per have been first-line victims of Trump's tariffs. That means their customers will feel the pain too. General Motors (GM) and Jeep-parent Stellantis (STLA) both said tariffs harmed profitability in the second quarter. Ford (F) will probably echo that theme when it reports earnings on July 30. Automakers aren't just suffering from tariffs on imported parts, but also from Trump's new 50% tariff on most imported steel and aluminum, which are major components in cars. Most car prices haven't risen yet. The all-in cost of buying a car has actually dropped from peak levels of 2022, when the average cost of a new car equated to 42 weeks of work for the typical buyer, according to the Cox Automotive/Moody's Analytics affordability index, which accounts for prices, incomes, and interest rates. That's now down to about 37 weeks of work. But overall costs are still about 10% higher in real terms than they were from 2012 through 2021. And it's only a matter of time before automakers start passing higher tariff costs onto buyers. Some of the most popular cars in the US market are imports. The Subaru Impreza, Toyota (TM) Prius, and Mazda (7261.T) Miata come from Japan, as a few examples. Many Audis, BMWs ( and Mercedes ( come from Europe, along with the Volkswagen (VWAGY) Golf. Those imports will all come with the new 15% tax. Korean imports include the Hyundai ( Elantra, Kia Soul, and many other models from the two Korean manufacturers. They seem likely to face the same 15% import tax, since that is becoming the standard for Trump's trade deals. Read more: What Trump's tariffs mean for the economy and your wallet Mexico is the biggest source of automotive imports, supplying about 40% of all imported components, plus finished vehicles such as the Ford Maverick, Chevy Blazer, Mazda 3, and Nissan (NSANY) Sentra. Canada is another major source of vehicles such as the Chrysler Pacifica, Lexus RX 350, and many Honda (HMC) Civics. New Trump trade deals with Mexico and Canada seem further off, but in the meantime, he imposed a 25% tax on imported products from those countries that don't satisfy complex domestic-content requirements. 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Shareholders won't accept it, and with costs rising throughout the industry, all automakers will have pricing power, allowing them to charge more. Even if prices rise by less than under some other scenario, car buyers still have reason to expect lower prices from Trump, not higher ones. Trump ran for president last year, vowing to 'bring prices way down,' after three years of excessive inflation. Voters who went for Trump in 2024 said that was one of the main reasons they picked him. Yet earlier this year, Trump said he 'couldn't care less' if automakers raised prices to offset the cost of his tariffs. They're going to. Maybe it won't be by as much as analysts thought before, but that won't comfort buyers facing sticker shock anew at the dealership, service center, auto parts store, and insurance agency. Those Trump trade deals won't look so rosy once people start to pay for them. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. 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