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 executives are worried about the possible introduction of tariffs on goods from Mexico, proposed by the administration of US President Donald Trump. If the 25% tariffs that have been proposed really become a reality, then Volksaagen, as well as other car companies, could find themselves in huge trouble.

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.