The Trump administration is planning to enact a 25% tariff on vehicles imported into the United States, followed later by a similar tariff on auto parts, sparking concerns about the impact on what consumers pay.

U.S. President Donald Trump last Wednesday announced sweeping 25% tariffs on cars “not made in the U.S.,” sending shockwaves through global automakers.

The president’s new tariffs on imported vehicles and his plans to kill a popular tax credit will likely torpedo demand for vehicles made by American workers.

President Trump says the tariffs will encourage investment in U.S. factories, but analysts say car buyers will have to pay thousands more.

Donald Trump announced a sweeping new set of reciprocal tariffs on Wednesday, arguing that they would allow the United States to succeed. Trump's tariffs, which he imposed via executive order, are expected to send economic shockwaves around the world.

All British products are set to be hit by a 10% tax on goods imported into the US from abroad set to take effect this weekend. Ministers insist they hope to have the tariffs overturned as part of ongoing talks on a wider economic agreement with the US.