*

Carmakers hope to gain leverage from their U.S.

investments and

exports

*

Under proposals being discussed, German carmakers would

get

credits for cars they export from the U.S.

*

U.S. is biggest export market for VW, BMW and Mercedes

(Changes sourcing in headline and paragraph 1)

BERLIN, May 28 (Reuters) - German carmakers BMW

, Mercedes-Benz and Volkswagen

are in talks with Washington on a possible import tariff deal,

hoping to gain some leverage from their U.S. investments and

exports to soften the tariff blow, three people familiar with

the matter said.

The carmakers hope that the talks with the U.S. Department

of Commerce could result in a deal in June, one of the people

said, but this would be contingent on carmakers pledging

substantial investments that would sway the U.S. administration.

Under the proposals being discussed, German carmakers would

get credits for cars they export out of the United States, which

could then be deducted from tariffs, a separate source said.

German carmakers have been in the crosshairs of U.S.

President Donald Trump, who has put in place tariffs of 25% on

car imports into the United States, the biggest export market

for Volkswagen, BMW and Mercedes-Benz.

The talks were first reported by Handelsblatt.

Volkswagen, Mercedes-Benz and BMW declined to comment on any

talks with the U.S. government. The carmakers previously said

they were holding talks with the U.S. government over the tariff

issue.

Shares in the carmakers got a boost following the report,

with BMW up 3.1%, Volkswagen up 2.2% and Mercedes up 1.8%.

Already struggling with a protracted slowdown in German

industry and stiff competition from abroad, Germany's carmakers

are battling to stem the fallout from Trump's tariff strategy.

But there has been some optimism, with executives at BMW,

the biggest auto exporter by volume from the U.S., and

Volkswagen subsidiary Audi recently indicating there might be

movement on the issue in the coming months.

BMW specifically said it expected tariffs to decrease in

July.

Mercedes, meanwhile, has responded to the tariff threat

with plans to add production of its GLC SUV for North America at

its plant in Tuscaloosa, Alabama.