German engineering sector 'disappointed' by new US tariff rules

The German mechanical and plant engineering sector has criticized the US government’s revised tariffs on steel and aluminium.

"From April 6, a flat-rate tariff of 25% will apply to many machines from Europe. In many cases, this will place a greater burden on the European engineering sector than before – that is disappointing," the industry association VDMA said on Friday.

The association said it is particularly challenging for companies that they have been given no time to prepare for the change. The new regulations were announced on Thursday.

Companies must continue to prove where the steel and aluminium used in their products was cast or smelted, the association said. This is unfeasible for many. The risk of punitive tariffs of up to 200% remains.

Admittedly, there is limited relief for some companies, as a tariff cap of 15% applies to certain mechanical engineering products, such as injection moulding machines and conveyor technology, for a limited period until December 31, 2027.

"Products consisting predominantly of steel and aluminium, on the other hand, are significantly worse off. In future, they will be subject to a 50% tariff on the entire product," the VDMA statement said.