Germany-U.S. Automotive Trade Tensions: Duty-Free Deal in Talks

In a bid to reshape transatlantic trade, German Chancellor Friedrich Merz announced on Friday an initiative to foster duty-free car imports between Europe and the U.S. The effort, discussed with President Donald Trump during Merz's inaugural trip to Washington, aims to create a balance in automotive trade.

Merz revealed that dedicated representatives from the White House and the German chancellery will engage in intensive discussions to improve U.S.-German trade relations. However, he emphasized that trade negotiations would continue to fall under the jurisdiction of the European Union, mentioning an urgent briefing with EU Commission President Ursula von der Leyen.

The announcement follows reports of ongoing discussions between major German automakers like Mercedes-Benz, BMW, and Volkswagen with U.S. officials regarding potential import tariff agreements, which could set a precedent for future cross-industry tariffs.

(With inputs from agencies.)