In an article published in the Frankfurter Allgemeine Zeitung, European Commission President Ursula von der Leyen stated, “The most important element of our agreement is that we have set a very clear line at 15 percent for most EU products, including vehicles and pharmaceuticals.” However, according to experts, the US’s expanded list of high-tariff products undermines this statement. About 30 percent of machinery imported from the EU to the US now falls under a 50 percent tariff on the metal content of the product. This threatens the presence of many companies in the US market.
The tariff list will be updated every four months. As a result, contrary to the Commission’s promised stability, uncertainty in transatlantic trade will continue. In addition, bureaucratic procedures associated with steel and aluminum tariffs further burden companies. Firms are required to provide detailed documentation on the steel’s place of smelting, the origin of cast parts, and the metal content of the product. Especially for medium-sized enterprises, obtaining these data in full is difficult.
VDMA (German Engineering Federation), representing machinery and plant engineering manufacturers, sent an open letter to the European Commission. “Since the initial announcement of the tariffs, VDMA has expressed cautious optimism that a permanent 15 percent tariff could at least provide companies with planning certainty. However, following the agreement reached, VDMA President Bertram Kawlath concluded that the new tariffs once again unsettle European industry. ‘The resulting damage and the possibility of further tariffs in the coming months put key sectors of the mechanical engineering industry on the brink of an existential crisis,’” he warned
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