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German Automakers Push US for Tariff Relief with US Investment Pledges

Talks have progressed with Commerce Department officials under a plan to offset imports with US exports for lifting duties ahead of a possible June deal

Overview

  • The US imposed 25% tariffs on imported vehicles in April, prompting direct negotiations led by Volkswagen, BMW and Mercedes-Benz
  • Volkswagen CEO Oliver Blume has held regular meetings in Washington with the US Commerce Secretary and presidential advisers, calling the discussions fair and constructive
  • German automakers propose a reciprocal credit mechanism that would count US exports against tariff-hit imports to secure relief
  • Volkswagen has offered multibillion-dollar commitments, including a new Scout brand factory, and already supports over 20,000 direct and 55,000 indirect jobs in the US
  • Sources familiar with the talks say formal agreements with individual companies could be reached by June