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.

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