Volkswagen on Tuesday warned against the "harmful economic impact" of tariffs that U.S. President Donald Trump is proposing on imports from Mexico, where Europe's top carmaker operates a major factory.

The German carmaker is already contending with a sales slowdown, high costs, and competition from cheaper Chinese competitors. View on euronews

Volkswagen called tariffs "harmful" and detrimental to American consumers, Reuters reported. The company runs one plant in Puebla, Mexico.