BMW, Mercedes, Volkswagen In Talks With US For Tariff Deal, Says Report

German automakers BMW (BMWYY), Mercedes-Benz (MBGAF), and Volkswagen (VWAGY) are in talks with the U.S. over a possible import tariff deal, Reuters reported on Wednesday, citing people familiar with the matter.

The automakers are hoping for a deal in June, a source told Reuters while noting that it would rely on the companies pledging substantial investment in the U.S. to convince the administration.

Another source told the agency that German automakers would get credits for the vehicles they export from the U.S., which would then be deducted from tariffs as part of the proposal being discussed. None of the companies, however, commented on any talks with the U.S. government.

While Mercedes has already said that it will add its best-selling GLC SUV to its Alabama plant lineup starting in 2027, BMW is considering adding shifts at the Spartanburg plant, and Volkswagen's Audi is planning to produce some models in the United States, the report noted.

Both BMW and Mercedes also export heavily from the U.S.

While Trump previously threatened to impose 50% tariffs on goods from the EU starting June 1, he has since then rolled back on it after a call with the EU Commission chief.

The European Commission, which oversees the EU's trade policy, is currently attempting to forge a deal with the U.S. to end import tariffs or prevent further hikes.

The region currently faces 25% import tariffs on its steel, aluminium, and cars. All other goods are subject to a 10% tariff.

On Stocktwits, retail sentiment around BMW is trending in the ‘bullish’ territory while sentiment around Volkswagen and Mercedes are in the ‘bearish’ and ‘neutral’ territory, respectively.

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