Currently, the German auto giant operates a factory in Puebla, Mexico which reported production of nearly 350,000 cars in 2023.

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.

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

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.

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.