Donald Trump signs executive order announcing new 25 per cent tariffs on auto imports
US President Donald Trump has announced a 25 per cent tariff on all motor vehicle imports not made in the United States.
This escalates the ongoing trade war and poses a significant threat to the UK economy, as the US is the UK's largest vehicle export market.
The announcement follows the OBR halving the UK's economic growth forecast and Chancellor Rachel Reeves announcing spending cuts to plug a huge budget hole.
The UK government is in ongoing talks with the US to avoid tariffs, but no agreement has been reached yet.
The tariffs could potentially eliminate the Chancellor's budget headroom and necessitating further cuts or tax rises.