Mercedes (MBGYY), BMW BMW, and Volkswagen (VWAGY) are in talks with the U.S. Commerce Department to strike a trade deal, according to German newspaper Handelsblatt. The three German auto titans have reportedly engaged in talks to form a process that would offset imports and exports and are considering investing billions of dollars into the U.S. in exchange for tariff benefits.
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German Auto Giants Accelerate Trade Talks, Reports Handelsblatt
The automakers seek to strike a deal by early July as costly tariffs have forced them to rethink their U.S. strategy. Last year, German automakers produced over 844,000 cars in the U.S. while German car imports totaled approximately 450,000, according to the German Association of the Automotive Industry. Research firm ING adds that the U.S. accounts for about 16% of each of the three company’s unit car sales.
Shares of the three companies are all trading higher in response to the news.
