BERLIN, May 28 (Reuters) - German carmakers BMW

, Mercedes-Benz and Volkswagen are

in talks with the U.S. Department of Commerce on a tariff deal

that would involve a mechanism to offset imports and exports,

the Handelsblatt business daily reported on Wednesday.

In return for tariff relief, the companies could invest

billions in the United States, the report said citing company

sources. It did not give a more exact sum.

The aim is to clinch a deal by early July, according to

Handelsblatt.

(Writing by Rachel More

Editing by Madeline Chambers)