The German engineering federation, the Verband Deutscher Maschinen- und Anlagenbau (VDMA), has cautioned about the repercussions of ongoing US tariffs ahead of the 15th Mechanical Engineering Summit. Bertram Kawlath, Vice President of the VDMA, stated to RTL and ntv television channels that renegotiation is essential. “It’s unavoidable. Otherwise, we, as the largest industrial employer in Germany and a significant exporter, will simply cease trading with our largest market.
The industry association previously sent an urgent letter to European Commission President Ursula von der Leyen, formally requesting a resumption of negotiations. When questioned about a response, Kawlath indicated that one is anticipated, stating, “We haven’t received a reply yet, but I expect one. I anticipate seeing Ursula von der Leyen on Thursday.
The sector is currently facing considerable strain. Production has decreased by roughly ten percent since 2018, placing significant pressure on numerous businesses. The tariffs, which can reach up to 200 percent, are now rendering exports unfeasible for some machinery manufacturers.