Trump implements 25% tariffs on vehicle imports

Donald Trump has announced 25 per cent tariffs on all motor vehicle imports to the United States. During a press conference in the Oval Office last night, the US president announced that cars and light trucks imported into the US would be subject to the levy in the latest escalation of his far-reaching trade war.

- ATHENA STAVROU, ANGUS THOMPSON

"What we're going to be doing is a 25 per cent tariff for all cars that are not made in the United States," Mr Trump said. The announcement raises fears of greater economic pain in the UK, whose largest vehicle export market is the US, having sold £6.4bn in motor vehicles to the country in 2023, according to the Office of National Statistics.

Andrew Griffith, the shadow trade secretary, called the announcement "concerning", adding that British jobs are "clearly now at real risk".

He told The Telegraph: "I'm afraid Labour have dropped the ball here. This government has never laid out a plan, took too long to get round the table with Trump and, as of now, they have nothing to show for it."

The OBR earlier warned tariffs threatened by Trump could eliminate all of Ms Reeves' margin of error in her budget if they are implemented.

Talks between the UK and US on avoiding tariffs remain ongoing, with trade secretary Jonathan Reynolds visiting Washington last week to discuss an "economic deal".