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.

BMW's plant in San Luis Potosi, Mexico, produces the 3 Series, 2 Series Coupe and M2, with nearly all of the output going to the U.S. and other markets worldwide, according to the carmaker. From 2027, it will produce the all-electric "Neue Klasse" model line.

U.S. President Trump said he could impose 25% tariffs on Canada and Mexico from Feb. 1, sending shares of several Asian automakers and battery firms lower in trading on Tuesday.

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