Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
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Mercedes-Benz proposes a system for duty-free car imports between the US and EU, aiming to balance exports. CEO Kaellenius discusses the potential trade impact.
BERLIN (Reuters) -Mercedes-Benz has proposed a deal under which U.S. cars could be imported into Europe duty free in exchange for tariff waivers on the same number of vehicles that EU automakers export to the U.S., the company's CEO said in a German magazine interview.
"For every car that leaves the USA or Europe, a car from the other side comes in duty free," Ola Kaellenius told Spiegel. "We have put this idea to both sides and it is a possible component of the negotiations between the USA and the EU."
Such a deal could act as a precedent for other industries, Kaellenius added.
Mercedes-Benz, and German rivals BMW and Volkswagen, are in talks with Washington over a possible import tariff deal, sources told Reuters last month.
In a separate interview with the Frankfurt Allgemeine Zeitung newspaper also published Thursday, Kaellenius said Mercedes-Benz was available as a "sounding board" for - and to contribute ideas to - EU and U.S. trade talks.
"As a company, we hold talks with political decision-makers – in the EU as well as in China and the U.S.," said Kaellenius.
"However, negotiations take place at EU level because trade policy falls within the EU's remit. We are available as a sounding board, contributing ideas and presenting scenarios showing how certain decisions would affect us," he added.
Kaellenius' interviews were published hours before Germany's new chancellor, Friedrich Merz, holds his first face-to-face talks with U.S. President Donald Trump as Europe seeks to stave off looming U.S. tariffs.
(Writing by Miranda MurrayEditing by Madeline Chambers and Mark Potter)
Mercedes-Benz has proposed a deal where U.S. cars could be imported into Europe duty-free in exchange for tariff waivers on an equal number of vehicles exported from the EU.
Ola Kaellenius, the CEO of Mercedes-Benz, is leading the discussions and has stated that the company is available to contribute ideas to EU trade policy.
Kaellenius mentioned that such a deal could set a precedent for other industries beyond automotive, potentially influencing future trade negotiations.
Mercedes-Benz, along with other German automakers like BMW and Volkswagen, is in talks with Washington regarding a possible import tariff deal.
The discussions are taking place as Germany's new chancellor, Friedrich Merz, prepares for his first face-to-face talks with U.S. President Donald Trump.
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