US-China trade war hits car firms

CAR firms Daimler and Toyota say they are suffering from a relentless trade war between the US and China.

Annual profits at Daimler tumbled 22pc to £9.8bn after tariffs increased on cars shipped from the US to China.

Toyota also posted a gloomy update, warning that profits are likely to come in lower than expected this year.

It has been hit hard in the US by slowing sales of larger cars and has offered big discounts. Profits in the final three months of 2018 fell to £1.2bn, down 81pc on the previous year.

However, Toyota said it will continue to make vehicles in the UK after rival Nissan scrapped plans to produce a new model in Britain.

Nissan said the decision was chiefly due to falling demand in Europe coupled with tougher regulations for diesels, but Brexit uncertainty made the situation worse.