German engineering firms are voicing concerns over newly imposed supplementary tariffs on imports into the United States. Despite existing agreements with the European Union, the U.S. government is reportedly extending tariffs to additional industrial products.
Oliver Richtberg, a representative of the German Engineering Federation (VDMA), stated that the added duties threaten the U.S. business of many affected companies. The U.S. is incrementally expanding its steel and aluminum tariffs, now encompassing 407 additional products as of August 15th. This effectively pushes duties on numerous goods above the 15 percent ceiling previously agreed upon with the EU. For instance, motorcycles imported from the EU will now face approximately 30 percent tariffs due to the addition of a 50 percent levy on steel components on top of the initial 15 percent tariff.
According to Richtberg, the negotiated trade arrangement has lost its effectiveness for the mechanical engineering sector, as tariffs on steel and aluminum components circumvent the agreed-upon 15 percent overall cap. The VDMA estimates that around 30 percent of EU machine exports to the U.S. are now subject to these supplementary tariffs, impacting crucial products like motors, pumps, industrial robots and agricultural and construction machinery.
A further concern for the industry is the U.S. government’s intention to expand the list of affected products every four months. Richtberg characterized this as a destabilizing factor, creating ongoing uncertainty for mechanical engineering firms and undermining any anticipated security for businesses operating in the sector.
