VW Warns of Trade Conflict Amid US Tariffs on Mexico, Canada, and China
Volkswagen has expressed concerns over potential trade conflicts after President Donald Trump announced tariffs on goods from Mexico, Canada, and China. The German automaker has a significant presence in Mexico, with its Puebla factory being the country's largest.
Volkswagen issued a statement saying it is assessing the impact of the tariffs on its operations. "We are counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict," the statement read.
Trump has imposed a 25% levy on imports from Canada and Mexico, and an additional 10% tax on Chinese goods, effective Tuesday. The German auto industry lobby, VDA, has criticized the tariffs as a setback for global trade and a potential threat to jobs in Europe.
Volkswagen is among the German automakers most vulnerable to the tariffs. Analysts at Stifel believe that 65% of Volkswagen's US sales would become uncompetitive if duties are imposed on Mexican imports.