The German Engineering Federation (VDMA) has voiced strong concerns over the recent EU-US tariff agreement, warning that the deal could undermine the competitiveness of German machinery exports and place thousands of jobs at risk.
Concerns over expanded US tariffs
While the European Commission highlighted the agreement, which introduced a 15 percent ceiling on tariffs for most EU goods, as a path to “stability and predictability,” the US simultaneously broadened its tariff regime. As a result, around 30 percent of US imports of European machinery are now subject to a 50 percent tariff on the steel and aluminum content of products.
According to VDMA, this expansion disproportionately affects medium-sized engineering firms that struggle to meet extensive “melt and pour” (steel) and “smelt and cast” (aluminum) documentation requirements for every batch of raw material used.
Rising list of affected products
The US Department of Commerce is authorized to revise the tariff list every four months, creating continuous uncertainty for exporters. Already, 150 new products have been added to the list, including motors, pumps, industrial robots, agricultural machinery and construction equipment.
Future reviews could further expand coverage to drones, wind turbines, and key components, amplifying risks for Europe’s advanced manufacturing sector.
VDMA calls for action
In an open letter to EU Commission President Ursula von der Leyen, VDMA President Bertram Kawlath urged Brussels to negotiate relief on steel and aluminum derivative tariffs and ensure that machinery and equipment are excluded from future measures.
Initially, the VDMA welcomed the 15 percent permanent tariff ceiling as providing planning security. However, with the spread of 50 percent tariffs on critical machinery products, the federation now warns of an existential threat to Europe’s engineering industry.
