Donald Trump’s decision to slap tariffs on imported cars has crashed U.S. car stocks with major brands feeling the sting. Shares of General Motors were down 8% in after-market trading after the announcement was confirmed.

Meanwhile, the stock price of American car giant Ford was down by around 4.5%. After the President’s statement, share prices in Toyota, Honda and Hyundai all fell between 3% and 4%. Elon Musk’s Tesla was also rocked with share prices down 1.3% after the policy was confirmed on Wednesday afternoon.

Mike Hawes, SMMT Chief Executive, said, “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK-made cars.

“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.

“The industry urges both sides to come together immediately and strike a deal that works for all.”

President Trump announced the policy from the Oval Office as he suggested the move would kick start US automotive production,

The President said: “This will continue to spur growth like you haven’t seen before.

“We’ll effectively be charging a 25% tariff. But if you build your car in the United States, there is no tariff.”