“Further tariffs would directly hit the American economy and make products for US consumers more expensive,” said Hildegard Mueller, president of the German Car Association (VDA).

“A tariff of 25%, currently mooted by President Trump, is a provocation,” she said.

While the EU levies a 10% tariff on car imports versus 2.5% in the US, Hildegard said the legal basis for reciprocal tariffs was “completely unclear”.

The US levied a 25% tariff on imports of pick-up trucks, which are popular in the country, she said.

Trump on Tuesday said he could impose levies “in the neighbourhood of 25%” on cars, after last week announcing that tariffs on autos could come “around April 2”.

“Tariffs as a negotiating instrument are the wrong tool. The risk of a global trade war with negative consequences for the world economy is high,” Mueller said.

German carmakers make about 15% of their unit sales in the US, according to analysts at Moody’s, though not all of the vehicles are manufactured in Europe.

Contacted by AFP, the Society of Motor Manufacturers and Traders, the auto industry association in the UK, declined to comment.

Trump has already announced tariffs on steel and aluminium imports as well as on all imports from China and is threatening duties of 25% on goods from Mexico and non-energy imports from Canada.