Top executives of Volkswagen and Daimler are set to meet senior Trump administration officials as the United States considers slapping tariffs on European-made cars.
White House economic adviser Larry Kudlow, Commerce Secretary Wilbur Ross and US Trade Representative Robert Lighthizer are among those preparing to attend the White House meeting.
Kudlow told reporters on Monday the administration would meet with the executives individually and would talk about "a lot of things, including our hope that they will continue to invest directly in the US and that they will use ... (North American) content ... make engines here, if you will."
US President Donald Trump has threatened to impose stiff tariffs on cars assembled in the European Union as part of his "America First" trade policy.
Although the European Commission handles trade negotiations on behalf of the common trading bloc, the Trump administration has summoned auto bosses as part of a campaign to "rebalance" global trade flows.
The executives will underline the EC's plea to cut tariffs on cars and explain the importance that German industry plays as a net exporter of vehicles from the US, a person familiar with discussions told Reuters.
BMW Chief Financial Officer Nicolas Peter and Daimler CEO Dieter Zetsche will attend the meeting. Volkswagen CEO Herbert Diess is also planning to attend.
The U.S. Commerce Department has circulated draft recommendations to the White House on its investigation into whether to impose tariffs of up to 25 per cent on imported cars and parts on national security grounds.
Last week, BMW said it was considering building a second manufacturing plant in the US that could produce engines and transmissions, which drew praise from Trump.
Trump agreed in July not to impose higher duties on EU cars while the two sides sought to improve ties in a number of fields, from regulatory co-operation to energy and a deal to remove tariffs on industrial goods.
On Sunday, he said China had agreed to "reduce and remove" tariffs on vehicles exported from the United States.
German Chancellor Angela Merkel said on Monday that although the EU is formally responsible for negotiating trade on behalf of Germany, German car makers play an important role in global trade.
