BMW, Mercedes, VW in talks with US over possible tariff deal, sources say

German carmakers BMW , Mercedes-Benz and Volkswagen are in talks with Washington on a possible import tariff deal, hoping to gain some leverage from their U.S. investments and exports to soften the tariff blow, three people familiar with the matter said.

The carmakers hope that the talks with the U.S. Department of Commerce could result in a deal in June, one of the people said, but this would be contingent on carmakers pledging substantial investments that would sway the U.S. administration.

Under the proposals being discussed, German carmakers would get credits for cars they export out of the United States, which could then be deducted from tariffs, a separate source said.


German carmakers have been in the crosshairs of U.S. President Donald Trump, who has put in place tariffs of 25% on car imports into the United States, the biggest export market for Volkswagen, BMW and Mercedes-Benz.

The talks were first reported by Handelsblatt.

Volkswagen, Mercedes-Benz and BMW declined to comment on any talks with the U.S. government. The carmakers previously said they were holding talks with the U.S. government over the tariff issue.

Shares in the carmakers got a boost following the report, with BMW up 3.1%, Volkswagen up 2.2% and Mercedes up 1.8%.

Already struggling with a protracted slowdown in German industry and stiff competition from abroad, Germany's carmakers are battling to stem the fallout from Trump's tariff strategy.

But there has been some optimism, with executives at BMW, the biggest auto exporter by volume from the U.S., and Volkswagen subsidiary Audi recently indicating there might be movement on the issue in the coming months.

BMW specifically said it expected tariffs to decrease in July.

Mercedes, meanwhile, has responded to the tariff threat with plans to add production of its GLC SUV for North America at its plant in Tuscaloosa, Alabama.