Volkswagen counts on talks to avoid trade conflict after Trump tariffs

BERLIN (Reuters) - Volkswagen is counting on talks to avoid trade conflict, Europe's biggest carmaker said on Sunday, after U.S. President Donald Trump ordered tariffs on goods from Mexico, Canada and China.

The company's Puebla factory is Mexico's largest and one of the biggest in the Volkswagen Group, making nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos models, all for export to the United States.

"We are assessing any potential effects on the automotive industry and our company as a result of the announced tariffs," Volkswagen's statement said.

"We are counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict."

Trump said that 25% levy on Canadian and Mexican imports, as well as an additional 10% tax on Chinese goods, would come into force on Tuesday.

German car lobby VDA said on Saturday that the tariffs are a significant setback for rule-based global trade and could have repercussions on jobs in Germany and Europe.

Volkswagen is the most exposed to tariffs among German carmakers. Analysts at investment bank Stifel have said that 65% of the cars that Volkswagen sells in the United States would no longer be competitive if duties were added to Mexican imports.

(Reporting by Andrey Sychev and Victoria Waldersee; Editing by Elaine Hardcastle and David Goodman)

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