Revving Up Trade: Germany and U.S. Seek Auto Tariff Truce

German Chancellor Friedrich Merz announced plans on Friday to propose a transatlantic auto trade agreement allowing duty-free import of U.S. cars into Europe in exchange for similar tariff waivers on European vehicles exported to the United States.

This announcement followed Merz's initial visit to Washington, during which he engaged in trade discussions with U.S. President Donald Trump. Currently, Europe exports significantly more autos to the U.S. than it imports, according to data from the European auto association ACEA.

Citing similar proposals from auto executives like Mercedes-Benz CEO Ola Kaellenius, Merz emphasized ongoing negotiations, which will involve representatives from the White House and the German chancellery to assess trade relations. Merz plans to inform EU Commission President Ursula von der Leyen about these discussions.

(With inputs from agencies.)