The threat of a 20 percent tariff on vehicles exported from the European Union has a number of automakers panicking. But that tariff could be taken off the table if the EU removes their tariff on vehicles exported from the U.S.
German paper Handelsblatt learned from sources that a meeting was held between the US ambassador to Germany, Richard Grenell and number of CEOs from German automakers. Grenell presented an offer directly from President Donald Trump - "elimination of all tariffs on automobile imports on both sides and removal of non-tariff barriers, such as regulations on the size of rear mirrors."
Currently, the U.S. levies a 2.5 percent tariff on vehicles imported from EU. A 10 percent tariff is slapped on by EU members on vehicles imported from the U.S.
The hope is that German automakers can put some pressure on the government to possibly bring this up with other EU members.
Diamler, Volkswagen, the German Economy Ministry, and the European Commission declined to comment when asked by Reuters.