Mercedes-Benz (MBGAF), and Volkswagen (VWAGY) are in talks with the U.S. over a possible import tariff deal, Reuters reported on Wednesday, citing people familiar with the matter. The automakers are hoping for a deal in June,

Germany's leading automakers are in talks with Washington over a possible import tariff deal, seeking to use their U.S. investments and exports as leverage to soften any blow, three people familiar with the matter said.

With Donald Trump extending tariffs on imported cars from the European Union, BMW, Mercedes-Benz and Volkswagen plan to strengthen their local manufacturing footprint.