The association of Germany's engineering industry, VDMA, warned Wednesday that the German and European mechanical engineering industry will face fresh challenges if the United States extends it tariff lists in December, urging the European Union to renegotiate the trade agreement.
In a statement, the 3,600-member federation said the so-called tariff deal between the EU and the U.S. remains "worthless" for German and European mechanical engineering, especially as U.S. authorities consider adding many more products to the steep steel and aluminum tariffs.
The U.S. is expected to add a further 200 mechanical products to the sectoral tariffs list, imposing a 50 percent duty on their steel and aluminum content and, in the worst case, a penalty duty of 200 percent, according to the statement.
The U.S. Department of Commerce already extended the tariff lists in August, affecting 40 percent of all German and European machinery exports to the U.S., it said.
VDMA President Bertram Kawlath said Wednesday that the federation forecasts 56 percent of German engineering exports to the U.S. would be affected by the high steel and aluminum tariffs, which would affect almost all branches of this industry.
He emphasized that import tariffs on European machinery undermine rather than promote the U.S. government's goals of protecting national security and reindustrializing America, because European-made machinery plays an important role in American manufacturing, especially in weapons systems, semiconductors and aerospace.
Kawlath said that the EU "urgently needs" renegotiations on the customs deal, which brings anything but predictability and stability for the industry.
German engineering body warns of U.S. tariff surge, urges EU to renegotiate deal
German engineering body warns of U.S. tariff surge, urges EU to renegotiate deal
