German engineering association VDMA has issued a stark warning ahead of the 15th Mechanical Engineering Summit, highlighting the detrimental impact of U.S. tariffs on the sector. Bertram Kawlath, Vice President of VDMA, stated in interviews with RTL and ntv that renegotiation of these tariffs is imperative. “There’s no alternative” Kawlath emphasized, “otherwise, we, as the largest industrial employer in Germany, with mechanical engineering being its major export sector, will have to abandon this market.
The association previously sent an urgent letter to European Commission President Ursula von der Leyen, formally requesting a reopening of trade negotiations. When questioned about a response to this appeal, Kawlath indicated that one is expected, noting he anticipates a meeting with Von der Leyen on Thursday.
The industry is currently operating under significant strain. Production levels have declined by approximately ten percent since 2018, placing considerable pressure on numerous businesses. The imposition of tariffs, reaching as high as 200 percent, has now resulted in a situation where “some mechanical engineering companies are simply no longer able to export machinery” to the affected market.
