A 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes. The new tariff comes days after Donald Trump eased the measure in response to business worries, but did not eliminate it. The US president has said the new tariff, along with a 25% import tax on cars that went into effect last month, is intended to push carmakers to do more manufacturing in the US.

But analysts said any immediate expansions in the US were likely to come at the expense of production elsewhere, while also leading to higher costs for the businesses – and ultimately higher prices for customers.