The German government remains hopeful for an agreement with the US regarding threatened automotive tariffs. Federal Economy Minister Katherina Reiche (CDU) stated on Wednesday, on the sidelines of G7 consultations in Paris, that Berlin is engaged in intensive talks with US officials. The sector is of paramount importance to Germany. 'And I am hopeful that we will successfully resolve this challenge together,' she added.

Last Friday, US President Donald Trump announced an increase in tariffs on cars and trucks from the EU, raising them from 15 to 25 percent. Trump justified the move by claiming the European Union is failing to uphold the agreed trade deal. The exact timeline for when these new tariffs will take effect remains unclear.

BMW Chairman Nicolas Peter also sees the European Union as having a responsibility. 'The EU must finally implement its part of the agreements,' he told the weekly newspaper 'Die Zeit'. Both sides should ratify the trade agreement, which offers significantly more benefits to the US, as soon as possible.

Negotiations are scheduled to take place in Brussels on Wednesday. Chancellor Friedrich Merz stated on Tuesday evening that a swift agreement would be desirable, noting that companies require planning certainty.

(Reporting by Christian Krämer and Kirsti Knolle, edited by Christian Götz. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for corporate and markets).)