US taxes on car imports could act as a massive jolt to the bloc’s economy, wiping €14.5bn (£12.9bn) off GDP, according to analysis from investment advisers, Redburn. The firm’s economists believe a “nasty turn” in EU-US trade tensions is coming, which when combined with market nerves over Italian debt, could shake the eurozone.

If the US presses ahead with tariffs, Germany, which relies on carmaking for a fifth of its manufacturing activity, could see 0.28pc shaved from its GDP alone, Redburn claims.