German Carmakers Engage in Talks with Washington Over Tariffs

German carmakers BMW, Mercedes-Benz, and Volkswagen are currently negotiating with Washington in a bid to strike a potential import tariff agreement. This initiative aims to leverage their investments in the U.S. to cushion the impact of tariffs, according to inside sources.

The discussions with the U.S. Department of Commerce are aimed at reaching a deal by June. A provision under consideration could offer German manufacturers credits for vehicles exported from the United States, credits which could be deducted from imposed tariffs.

Faced with President Donald Trump's 25% tariffs on car imports, which heavily affect their major export market, these negotiations provide a glimmer of hope for the carmakers. German industry leaders remain optimistic about progress in the coming months, while Volkswagen, Mercedes, and BMW stocks have seen a positive uptick following initial reports.

(With inputs from agencies.)