German manufacturers seek tariff deal with US

Tariffs imposed by the United States of America could have a strong detrimental impact on the car industry , and German manufacturers are trying to reach an agreement with the country.

For the automotive market in particular, tariffs of 25 percent on all imported vehicles are at stake – as announced last March .

Reuters writes that BMW , Mercedes-Benz and Volkswagen are in talks with the US Department of Commerce to try to reach an agreement as early as June.

The agency cites three people familiar with the matter. Any agreement will have to involve the promise of significant investment . But in any case, manufacturers have already announced plans to expand in the United States since President Donald Trump began to threaten tariffs.

On the table is a scenario in which manufacturers receive credits for cars exported from the United States, which could then be deducted from tariffs , according to one of the sources cited by Reuters. Neither company has officially commented on the matter.

BMW is already the largest exporter of cars in the US by volume, but it is considering adding shifts to its Spartanburg plant, Mercedes-Benz will start producing the GLC in Alabama and Audi (Volkswagen Group) has had plans to produce in the US since before Donald Trump returned to power.

It is worth remembering that the European Union is also negotiating a tariff agreement with the US. This week, the Trump administration gave a deadline of July 9 to reach an agreement, days after threatening a direct 50% tariff as early as June 1.

Read Also: Tariffs? Trump 'threatens' and backs down. EU asks (and has) until July for "agreement"