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.

Volkswagen has expressed concern over the "harmful economic impact" of potential tariffs proposed by US President Donald Trump on imports from Mexico, reported Reuters.

Volkswagen AG (OTC:VWAGY) is upset about U.S. President Donald Trump‘s proposed tariffs on imports from Mexico. The Wolfsburg, Germany-based car manufacturer “is concerned about the harmful economic impact that proposed tariffs by the U.

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

Volkswagen warns that Donald Trump’s proposed 25% tariff on Mexican car imports could harm consumers and the global auto sector, risking a new North American trade war.

And it's not as if Volkswagen doesn't have a presence in the U.S. To demonstrate its commitment to American sites, the company pointed out that it is making total investments of over $10 billion in the country, split roughly between its Chattanooga plant and a joint venture with Rivian.

U.S. President Donald Trump's proposed tariffs could raise car prices and affect global automakers, warns Germany's VDA. Trump threatens 25% tariffs on Canada and Mexico to boost U.S. production. Automakers,