President Donald Trump threatened to place a tariff of around 25% on cars imported into the United States, a policy that could raise prices on cars from most automakers – including American car brands – almost immediately after the tariffs are imposed.

Japan has raised the issue of auto tariffs with the US after President Donald Trump threatened to impose a 25% levy on car imports, a move that would deliver a big blow to Japan’s economy.

Donald Trump is considering imposing tariffs of about 25 per cent on imports of cars, drugs and chips into the US as he teased the next steps of a rapidly escalating trade war.