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 affected, though, because it builds and imports the 3 Series from Mexico for the US market.

Some car firms have announced investment to expand or open new US facilities in recent months in an effort to spread production globally and avoid tariffs. The Hyundai Motor Group, for example, has invested more than £16 billion to increase its vehicle production in the country, including a new steel manufacturing plant.

The news will come as a big blow to the likes of JLR, for which the US is its biggest market with firm recording big increases in Range Rover and Defender sales in recent years. Minitoo, will be hit, given its models are made in the UK and China.

Other car makers targeting the US that don’t have factories across the Atlantic include Cupra – although its models could be manufactured at other Volkswagen Group facilities in the US – and Lotus.

However, the move could also affect domestic US car makers and firms that currently manufacture vehicles there. GM, for example, manufactures a number of vehicles and car parts in Canada, China and Mexico that it then imports into the US, and those vehicles and parts would be hit by the tariffs.

The announcement has been dubbed “disappointing” by the Society of Motor Manufacturers and Traders.

Mike Hawes, the trade body’s CEO, called for UK and US representatives to “come together immediately and strike a deal that works for all”.

He said: “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.