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 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 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,