‘Foul play:’ German machinery sector angered by additional US tariffs

Frankfurt (dpa) – German industry representatives on Wednesday urged the European Union to renegotiate its trade agreement with the United States, saying tariffs on steel and aluminium imports from the bloc are disproportionately affecting the sector.

On top of a 15 percent baseline tariff, manufacturers from the bloc have to pay a roughly 40 percent levy on the steel and aluminium components of machinery exported to the US under the agreement struck between the Trump administration and the European Commission earlier this year.

The exact fees are determined in a complicated calculation which is set to be applied to further products in the sector following another round of trade talks in December, the Association of German Mechanical and Plant Engineering (VDMA) warned.

According to VDMA calculations, this would mean that around 56 percent of German machinery exports would be affected by the steel and aluminium tariffs, which would impact virtually all branches of the mechanical engineering industry.

“It is to be feared that the US will continue this foul play,” said VDMA President Bertram Kawlath, calling on the EU to continue negotiations.

Kawlath also warned the US of negative consequences for its arms production, which is dependent on machines manufactured in Europe. (29 October)