The leading car manufacturers in Germany are in negotiations with the Washington government regarding a possible agreement on import tariffs, trying to use their investments and exports in the U.S. as leverage to halt any decisions from the U.S. that could affect them.
According to “Reuters”, BMW, Mercedes-Benz, and VW hope that negotiations with the U.S. Department of Commerce could result in an agreement as early as June, but it all depends on the companies promising substantial investments that may influence the U.S. government.
The three companies have already made it known that they are ready to expand their plans in the U.S. since President Donald Trump made threats of tariffs.
Mercedes-Benz has already announced that it will start producing the GLC SUV at its Alabama plant starting in 2027. For its part, BMW is considering increasing the number of shifts at the Spartanburg plant, and Audi, a brand of the VW group, is planning to produce some models in the United States, although the brand states that the plan predates Donald Trump’s arrival at the White House.
It is worth noting that BMW, which urged the European Union to reduce tariffs on the import of U.S. vehicles from 10% to 2.5%, is the largest exporter of cars from the U.S. by volume. Mercedes-Benz also exports a significant amount from its Alabama plant, which is its center for SUV production.
According to the same source, the proposals under discussion indicate that German companies will receive credits for the cars they export from the United States, which could be deducted from the tariffs imposed on imports.
Recall that Donald Trump announced in April a 25% tariff on all imported automobiles, urging international manufacturers to build factories on U.S. soil.
