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 Volkswagen Group has raised alarms over U.S. President Donald Trump’s proposed tariffs on Mexican imports.

"The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the U.S. administration will have on American consumers and international automotive industry," a Volkswagen spokesperson said in an emailed statement to Reuters.

President Trump suggested a 25 percent tariff on Canada and Mexico, which could greatly impact the many popular vehicles built in those countries.