Mobile-Menu

Economy US Customs Deal Hits Mechanical Engineering Harder than Expected

Source: Sandro Kipar | Translated by AI 1 min Reading Time

Related Vendors

VDMA Verband Deutscher Maschinen- und Anlagenbau e.V.
FAULHABER Drive Systems

The 15 percent customs deal with the USA, celebrated by the EU Commission, is turning out to be an existential threat for the German mechanical and plant engineering sector.

The VDMA calls on the EU Commission in an open letter to advocate for improvements to the customs deal.(Image: © peterschreiber.media - stock.adobe.com)
The VDMA calls on the EU Commission in an open letter to advocate for improvements to the customs deal.
(Image: © peterschreiber.media - stock.adobe.com)

The European Commission has described the latest tariff compromise with the USA as a decision for "stability and predictability." However, according to the VDMA, the agreement poses a risk for many companies in the mechanical and plant engineering sectors. While a fixed tariff rate of 15 percent now applies to numerous EU products, the USA has simultaneously significantly expanded the list of goods that remain subject to the much higher steel and aluminum tariffs, according to the association.

As a result, around 30 percent of EU machinery exports to the USA are now subject to a 50 percent surcharge on the metal content. Key products such as engines, pumps, robots, as well as agricultural and construction machinery are affected. Additionally, the list is reviewed every four months and can grow at any time—for instance, to include drones or wind turbines. Therefore, there can be no talk of planning security, as the Commission emphasizes, it is further stated.

In addition to the financial burdens, companies also face significant bureaucratic efforts. Proof of melt origin, cast parts, and metal contents are hardly feasible for many medium-sized businesses.

The mechanical engineering association VDMA therefore warns of an existential threat. VDMA President Bertram Kawlath demanded in an open letter to the EU Commission to advocate emphatically for exemptions from US tariffs. Otherwise, the export-intensive industrial sector faces a new wave of uncertainty —with severe consequences for transatlantic trade.

Subscribe to the newsletter now

Don't Miss out on Our Best Content

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy. The consent declaration relates, among other things, to the sending of editorial newsletters by email and to data matching for marketing purposes with selected advertising partners (e.g., LinkedIn, Google, Meta)

Unfold for details of your consent

Related content