Trump meets with German auto executives

[WASHINGTON] US President Donald Trump met Tuesday with executives of Germany's three top auto manufacturers, amid efforts by Washington and Brussels to resolve Mr Trump's complaints about imbalanced trade in the sector.

The White House said Trump had encouraged the automakers to produce more in the United States, where they are already significant manufacturers.

"The president shared his vision of all automakers producing in the United States and creating a more friendly business environment," the White House said in a statement following the meeting.

Washington and Brussels in July announced a truce, pausing a tit-for-tat tariff battle after Trump threatened to impose duties on European auto imports, citing national security.

BMW, which maintains a major auto plant in Spartanburg, South Carolina, said Tuesday the meeting had been "constructive" but responsibility for international trade policy "rests solely with the relevant political institutions."

Within two years, the company plans to add 1,000 positions to the 10,000 workers employed in Spartanburg, it said in a statement, and is considering adding a second US site for power trains.

Officials from Daimler and Volkswagen, which has recently announced a potential strategic partnership with US automaker Ford, also attended the meeting.

Earlier, Commerce Secretary Wilbur Ross had said the aim of the meeting was to pare down the US$30 billion trade deficit the US has with Germany in cars and auto parts, which amounts to half the US$66 billion total deficit with the European nation.

"We're trying to get them all to increase their production in the US," Mr Ross said on CNBC prior to the meeting, noting that German plants were at capacity.

Mr Trump was not initially scheduled to join the meeting with the German executives but press secretary Sarah Sanders announced there would be a "brief meeting" with Herbert Diess of Volkswagen, Dieter Zetsche of Daimler and Nicolas Peter of BMW.

The US president has for months been threatening tariffs on imported autos, which would primarily hit Germany, but has pledged not to take any steps against the European Union while negotiations are underway following the July agreement.

"The president as you know said he will not impose tariffs on autos on the Europeans as long as negotiations with them are making good progress so the timing of this whole thing will largely be driven by what happens in negotiations," Mr Ross said.

AFP