German engineering manufacturers warn about the risks associated with the tariff deal between the EU and the United States on steel and

The German Federation of Mechanical Engineering (VDMA) has expressed serious concern about the recent tariff agreement between the EU and the United States, warning that the deal could undermine the competitiveness of German machinery exports and endanger thousands of jobs.

Concerns about expanded US tariffs

While the European Commission singled out the agreement, which imposed a 15 percent tariff ceiling on most EU goods, as a path to "stability and predictability," the US simultaneously expanded its tariff regime. As a result, about 30 percent of European equipment imports to the United States are currently subject to a 50 percent tariff on steel and aluminum content in products.

According to the VDMA, this expansion disproportionately affects medium-sized engineering firms, which struggle to meet the extensive documentation requirements of "smelting and casting" (steel) and "smelting and casting" (aluminum) for each batch of raw materials used.

A growing list of affected products

The U.

S. Department of Commerce is authorized to review the tariff list every four months, creating constant uncertainty for exporters. Already 150 new products have been added to the list, including motors, pumps, industrial robots, agricultural machinery and construction machinery.

Future reviews may further expand the reach of drones, wind turbines, and key components, heightening the risks to Europe's advanced manufacturing sector.

VDMA calls for action

In an open letter to the EU