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.

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,

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