German carmakers in talks with US over possible tariff deal: sources
Export credits
Under the proposals being discussed, German carmakers would get credits for cars they export from the US, which could then be deducted from tariffs, a second source said.
The talks were first reported by Handelsblatt.
Volkswagen, Mercedes-Benz and BMW declined to comment on any talks with the US government. The carmakers have previously said they were holding talks with the US government over tariffs.
The US is the fifth-largest source of car imports for the EU, after China, Japan, Britain and Turkey, according to EU figures.
The European Commission, which oversees trade policy for the 27-nation bloc, is stepping up efforts to secure a deal with Washington to end US import tariffs on EU goods, or at least prevent any increases.
Brussels has asked the EU's leading companies and CEOs for details of their US investment plans as leverage for negotiations.
Still, the Commission is also preparing for retaliation should talks fail, with motor vehicles and motor vehicle products among the highest value items on a list published by the Commission earlier this month of products that could be hit with countermeasures.
Shares in the carmakers got a boost from news of the talks, with BMW up 3.3% and Mercedes up 2.6%. Volkswagen's shares initially rose 2.2% before returning to their previous value.
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