A new tariff of 25% will be imposed on all cars imported into the United State, president Donald Trump has announced.

This new levy will come into effect from 2 April. Trump claimed "tremendous growth" for the US’s auto industry as a result of the tariffs. He also promised it would create more investment for US car makers and therefore more jobs.

Speaking at the Oval Office, Trump said "this is very exciting", adding: “What we’re going to be doing is a 25% tariff for all cars that are not made in the United States.”

Mexico will be the biggest country hit by the new levy. There car makers including BMW, Ford, Nissan, Volkswagen, and Toyota all have plants. The US's other top importers are Canada, Germany, Japan and South Korea

Trump confirmed that the new laws were "permanent", quashing any notion that they would be reversed. But he stated that "if you build your car in the United States, there is no tariff".

The likes of BMW, Mercedes-Benz, and Volkswagen already have plants in the US, building key models for both the US and other global markets. BMW's Spartanburg plant in South Carolina, for example, builds the X3, X4, X5, X6, X7, and XM. It will be hit, however, as it builds and imports the 3 Series from Mexico for the US market.

The news will likely come as a big blow to the likes of JLR, which has seen an increase in Range Rover and Defender sales over recent years. Other car makers targetting the US which don't have factories across the Atlantic include Cupra and Lotus.

The announcement has been dubbed "dissapointing" by the Society of Motor Manufacturers and Traders (SMMT).

Chief executive of the trade body, Mike Hawes, called for UK and US representatives to "come together immediately and strike a deal that works for all".

"The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.

"Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic."

Ursula von der Leyen, European Commission president, said the bloc will study the latest announcement, adding: "I deeply regret the US decision to impose tariffs on European automotive exports. 

"As I have said before, tariffs are taxes - bad for businesses, worse for consumers equally in the US and the European Union. 

"The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.

"The EU will continue to seek negotiated solutions, while safeguarding its economic interests."

This new tariff is the latest in a wave of levys introduced by president Trump since he took office for the second time. He said he wants to protect businesses and manufacturers in America.

This is a breaking news story, more to follow