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 extending tariffs to additional industrial products.
Oliver Richtberg, a representative from the German Engineering Federation (VDMA), indicated that these tariffs threaten the viability of numerous companies’ U.S. operations. The U.S. administration is incrementally broadening its steel and aluminum tariffs – initially set at 50 percent – to encompass a wider range of industries. Since August 15th, an additional 407 products have been affected, effectively exceeding the 15 percent tariff ceiling agreed upon with the EU in many cases. For example, motorcycles imported from the EU now face approximately 30 percent duties, due to the addition of a 50 percent levy on steel components alongside the initial 15 percent tariff.
Richtberg stated that the original tariff agreement has largely lost its value for the machinery and plant engineering sector, as duties on steel and aluminum products effectively undermine the agreed-upon 15 percent cap. The VDMA estimates that approximately 30 percent of EU machinery exports to the U.S. are now subject to these supplementary tariffs, particularly impacting products such as engines, pumps, industrial robots and agricultural and construction machinery.
Industry representatives are also concerned by the U.S.’s practice of expanding the list of affected goods every four months, describing it as a continuing uncertainty. This practice undermines the intended security for businesses within the machinery and plant engineering sector, they argue.