Volkswagen fears that tariffs will damage the worldwide auto industry

The comments by the German auto giant, which already faces high costs and cheap competition from China at home, reflect great uncertainty following the US president’s threat to possibly impose 25% tariffs on products from Mexico.

Volkswagen has warned of the «detrimental economic impact» of Donald Trump’s proposed tariffs on imports from Mexico, where Europe’s largest manufacturer has a big plant.

The comments by the German automaker, which already faces high costs and limited competition from China at home, show tremendous uncertainty following the US president’s threat to impose 25% tariffs on Mexican exports.

Although no firm decision has been made, Trump said such tariffs could take effect as early as Feb. 1.

“Volkswagen Group is concerned about the harmful economic impact that the U.S. administration’s proposed tariffs will have on U.S. consumers and the international automotive industry,” a spokesman said in a statement emailed to Reuters.