US offers tariff solution to German car companies on condition: says a report

The United States President Donald Trump would suspend threats to impose tariffs on imported cars from the European Union provided the bloc removes duties on US cars. The US ambassador to Germany conveyed the message to German car bosses, according to a report by a leading German-language newspaper Handelsblatt on Wednesday, July 4.

Handelsblatt reported US ambassador Richard Grenell told executives from Daimler, Volkswagen, and BMW during a meeting that in exchange Trump wanted the European Union to withdraw duties on imported cars from the US. The meeting had taken place at the US embassy in Berlin on Wednesday.

In June, Donald Trump had threatened to impose a 20-per cent import tariff on all EU-assembled vehicles, which could disturb the industry’s current business model for selling cars in the US.

 Daimler and Volkswagen, however, declined to comment on the report.

A spokeswoman for the German Economy Ministry also declined to comment, saying issues related to the trade dispute with the United States were being handled by the European Commission in Brussels on behalf of EU member states.

A European Commission spokeswoman only said Commission President Jean-Claude Juncker would discuss the matter with Trump later this month, without commenting any further.

“This will be an opportunity to discuss the many issues of common interest, notably also relating to trade,” the spokeswoman said.