The VW Group has warned about the severe “adverse economic impact” that the decision of the new U.S. president, Donald Trump, to impose heavy tariffs on imports from Mexico could have on the German automaker, which has a factory in Mexico.
The VW alert comes at a time when the brand is already facing Chinese competition in the domestic market, and reflects significant uncertainty following Trump’s threat to impose a 25% tax on products coming from Mexico.
The final decision has not yet been made by Trump, who has already made it clear that he intends to impose the new tariffs starting February 1.
“The VW Group is concerned about the adverse impact that the tariffs proposed by the U.S. administration will have on American consumers and the automotive industry,” said a VW spokesperson in statements to “Reuters.”
“We value collaboration and open dialogue. The VW Group hopes to continue its constructive and long-standing partnership with the U.S. administration,” the VW spokesperson added.
It is worth noting that VW’s factory in Mexico is one of the largest in the group, producing models that are exported to the U.S.
