European carmakers close in on U.S. tariff delay

The Trump administration, in a move that could forestall potentially devastating tariffs on American auto imports, is in discussions with European carmakers about increasing their investment and employment in the U.S.

The talks come ahead of a Wednesday deadline for President Trump to decide whether to impose tariffs on foreign cars and car parts, which his administration has declared a national security threat.

While neither side called it a deal, the carmakers have worked out an understanding with American officials in an effort to delay the tariffs for several months, according to people familiar with the deliberations.

German pledge: The car industry in Germany, which is on the brink of recession, is promising to create 25,000 jobs at U.S. factories, according to a senior American official. BMW, Daimler and Volkswagen have large operations in the U.S. that have already been hit by fallout from Mr. Trump’s trade war.