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

Volkswagen called tariffs "harmful" and detrimental to American consumers, Reuters reported. The company runs one plant in Puebla, Mexico.

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 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.

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.

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.