The latest US tariff regulation on steel and aluminium will increase the burden on Germany’s mechanical engineering industry, says its association VDMA.
According to a new VDMA survey, the average tariff rate for affected companies has risen from 21% to 26% in a matter of one week, since 6 April, Kallanish hears. “Although the procedures have been simplified, many companies are economically worse off,” says VDMA executive director Thilo Brodtmann. About half of the respondents state they are more heavily affected by the new rules. Only about one fifth see benefits, while one third report no change.
The US Administration claims the revised tariffs would provide relief for Europe. “For the European machinery sector, however, the expected relief has not materialised,” Brodtmann says. VDMA therefore calls on the European Union to secure a binding tariff cap of 15% for the machinery industry in its negotiations with the USA.
