The Trump administration is waiting to make a decision on the possibility of applying new tariffs to European cars. Also, days ago, German car manufacturers announced a possible deal with U.S. suppliers.

In May, President Donald Trump set November as the deadline for deciding whether to impose new tariffs on cars and auto parts from the European Union, which according to the Atlantic Council, represent 29 percent of the total value of cars exported from the EU.

This week, the U.S. government is expected to extend the deadline to decide whether to apply the rate that could be as high as 25 percent.

The European Union had threatened retaliation by also levying taxes on U.S. assets.

Companies such as Volkswagen AG and Daimler AG have plans to shift parts of their global production to suppliers in the U.S., according to Bloomberg.

Regarding the economic determinations, earlier this month U.S. Commerce Secretary Wilbur Ross made a statement during an interview with Bloomberg TV.

“Our hope is that the negotiations we’ve been having with individual companies about their capital investment plans will bear enough fruit that it may not be necessary to put the 232 fully into effect, may not even be necessary to put it partly in effect,” said Ross, referring to the national-security investigation under Section 232 of a 1962 trade law.

Meanwhile, the U.S. ambassador to Germany, Richard Grenell, has played an intermediary role in recent months to convince German carmakers to generate more value and investment in the United States.

In response, some companies said they are ready to switch parts of their Mexican production to U.S. suppliers.

According to Bloomberg, Volkswagen plans to invest $800 million at its only U.S. vehicle factory located in Chattanooga, Tennessee, which will create at least 1,000 new jobs.

Daimler, manufacturer of Mercedes Benz, said it has earmarked $1 billion on investments to expand vehicle manufacturing at its Tuscaloosa factory in Alabama, which will add more than 600 jobs.

According to Reuters, an unidentified person who would be familiar with the commercial determinations that are on hold, said President Trump will announce a six-month delay in the decision on the tariff rate to the European Union.

Meanwhile, as the British news agency points out, U.S. Trade Representative Robert Lighthizer and the EU Trade Commission have been talking since last week and now the tone had become more positive.