US President Donald Trump’s trade war against Canada and Mexico could have far-reaching consequences for German automaker Volkswagen. A significant portion of the company’s US sales come from its Mexican production lines, with 44% of cars sold last year being made in Mexico. This is a result of the integrated North American auto market disrupted by free trade agreements terminated by Trump.
The imposition of a 25% tariff on goods from Canada and Mexico could exacerbate Volkswagen’s struggles. The company is already facing challenges in China due to slowing demand and increased competition from local rivals, further diminishing its earnings.
Source: https://www.politico.eu/article/eu-automakers-caught-up-in-trumps-trade-war