New York City will cut its financial ties with the Trump Organization in the wake of the US president’s inflammatory remarks to the crowd that stormed the Capitol last week, the city’s mayor announced.

Mayor Bill de Blasio said the city will cancel three contracts to operate a carousel in Manhattan’s Central Park, skating rinks and a golf course in the Bronx that are worth around $17 million a year.

“The president incited a rebellion against the United States government that killed five people and threatened to derail the constitutional transfer of power,” Mr de Blasio said as he announced the decision. “The city of New York will not be associated with those unforgivable acts in any shape, way or form."

The Trump Organization swiftly announced plans to challenge what it branded a politically-motivated decision.

BREAKING: NYC Mayor de Blasio announces on @Morning_Joe that New York City is severing all contracts with the Trump Organization.

— MSNBC (@MSNBC) January 13, 2021

Amanda Miller, a spokeswoman for the company, said: “The City of New York has no legal right to end our contracts and if they elect to proceed, they will owe the Trump Organization over $30 million.

“This is nothing more than political discrimination, an attempt to infringe on the First Amendment and we plan to fight vigorously.”

However Mr de Blasio, a Democrat and regular critic of Donald Trump, said he was announcing the move in the expectation the Trump Organization would contest the decision in court, adding: “We’re on strong legal ground”.

It is the latest in a string of financial consequences for Mr Trump’s businesses after the Capitol riots which left five people dead and triggered impeachment proceedings against the outgoing president.

The PGA of America and the R&A both announced they would not hold tournaments at two golf courses owned by Mr Trump for the foreseeable future.

In addition, the New York Times reported that Deutsche Bank will not do business in the future with Mr Trump or his companies, cutting off a major source of loans for his businesses.

Separately, leading commercial real estate firm Cushman & Wakefield said it will no longer do business with the Trump Organization.

The company had served as agent for two high-profile Trump Organization properties in Manhattan, including Trump Tower, the president’s former residence, according to Business Insider.