Merkel begins to yield to Trump: proposes negotiations to reduce tariffs on vehicles | International

German Chancellor, Angela Merkel said Thursday to be ready to begin international negotiations with its partners to reduce tariffs on the automotive industry, and thus to disrupt the trade dispute between the European bloc and the United States.

This negotiation, "to which it would be ready" to participate, can not be conducted solely between the European Union (EU) and the United States, "but with all the countries with which we trade cars ". press

Merkel said that a "common European position" was needed on the issue, which is "under development" and it was pbaded on to the next visit of the president of the European Commission, Jean-Claude Juncker, Washington at the end of the month.

But the German leader opened the debate on a proposal made Wednesday night in Berlin by the US ambbadador to Germany, Richard Grenell, close to President Donald Trump, to the leaders of the three German automakers, Volkswagen, BMW and Daimler, as well as that of the Continental car parts manufacturer.

At this closed meeting, confirmed to AFP by a sectoral source, Grenell proposed to the United States and Europe to cancel tariffs "We must guarantee the 39, equal treatment of all trading partners, "said Merkel, moving away from the possibility of bilateral negotiations between Washington and Brussels.

which multilaterally renounces tariffs on cars "is an option I can imagine ," he added.

Trump threatens to raise tariffs EU car imports to 20%, which would affect Germany whose economy is very dependent on the sector automobile.

Great Free Trade Area?

The desire of the largest European economy – and the largest producer of cars – to give up tariffs in the automotive sector should be appreciated by Trump, who has already suggested at a G7 summit that countries These proposals have, however, been overturned by a series of other problems, among which Washington 's decision to abandon the nuclear agreement over Iran.

For the automotive giants, the prospect of a zero tariff for their products is something that can hardly be more tempting.

BMW, which has a plant that employs 10,000 people in South Carolina, told AFP: "It supports an increase in trade in reducing tariff barriers, especially those affecting trade in vehicles between the United States and the European Union. "

The German Chamber of Commerce and Industry also has argued that it supports the idea.

"It's better to discuss a tariff cut than to attend an escalation" in the trade dispute with new tariffs, said Martin Wansleben, who heads the Chamber. A trade war in the auto industry, the prospect of giving up the tariffs has had an effect on the stock markets, where shares of the auto giants have recorded significant gains.