Germany will offer to scrap the EU’s 10% tax on US autos: Report

German auto makers are proposing an end to the European Union’s 10 percent import tax on U.S.-made cars, the Wall Street Journal reported Wednesday.

The newspaper reported that Richard Grenell, the U.S. ambassador to Germany, has been in talks recently with the chief executives of German car makers BMW, Volkswagen and Daimler, where they pitched the idea of ending car tariffs between the U.S. and the EU.

During these talks, the executives said they would be in favor of scrapping these levies as part of a broader deal encompassing industrial goods, the Journal said.

There is a catch, however. Europe also wants a 25 percent tax on imported pickup trucks, SUVs and big vans scrapped, according to the report. That tax has been in place since the Johnson administration and scrapping it could alienate U.S. auto workers, a key constituency for President Donald Trump.

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