The report warned that premium auto companies could face the highest costs, including companies like Volvo and Jaguar, and that Trump's plans “will likely intensify the headwinds the global auto industry will face in an already challenging 2025.

Analysts and experts fear the tariffs could be more damaging for European car makers and their suppliers than any direct tariffs on EU goods.

US President-elect Donald Trump’s tariffs are expected to have a significant impact on carmakers across Europe and America. A report by S&P Global on Friday revealed that the automakers are estimated to lose up to 17 per cent of their combined annual core profits if the US government levies tariffs on Europe,