German engineering manufacturers warn of risks from EU-US tariff deal on steel and machinery

Friday, 29 August 2025 14:27:56 (GMT+3)   |   Istanbul

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.


Similar articles

India’s MOIL Limited has cut prices of all grades of manganese ores for July 2026 deliveries

02 Jul | Steel News

Steel sector PMI in Hebei decreases to 46.5 percent in June 2026

02 Jul | Steel News

India’s LMEL sees iron ore output rise 53% in Q1 of FY 2026-27

02 Jul | Steel News

India’s BCCL sees 13% decline in coking coal output in June 2026

02 Jul | Steel News

India’s NMDC Limited sees 44% rise in iron ore output in June 2026

02 Jul | Steel News

Shagang Group keeps local HRC price stable for July 2026

02 Jul | Flats and Slab

New house prices in 100 Chinese cities up 0.16% in June 2026

02 Jul | Steel News

US issues final results of CVD review on rebar from Turkey

02 Jul | Steel News

US import long steel prices decline amid reports of more imports at US Gulf Coast

01 Jul | Longs and Billet

USWC export scrap market remains bearish as bulk prices to docks fall

01 Jul | Scrap & Raw Materials