UK would not hesitate to retaliate against US tariffs - No 10 sources

Sir Keir Starmer said on Thursday that the UK would not be jumping into a trade war with America

Trump has said the 25% levy would lead to tremendous growth for the industry, promising it would spur jobs and investment in the US.

But there are concerns the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies.

The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales - and Mexico was the top supplier of cars to the country, followed by South Korea, Japan, Canada, and Germany.

UK car exports are worth about £7.6bn per year, and the US is the second largest market for UK cars after the European Union, according to car industry body the Society of Motor Manufacturers and Traders (SMMT).

The SMMT said the announcement from Trump was not surprising but, nevertheless, disappointing.

World leaders criticised the tariffs shortly after they were announced, with German Economy Minister Robert Habeck saying on Thursday the European Union must respond firmly while Frances President Emmanuel Macron called it a waste of time and urged Trump to reconsider.