BERLIN (Reuters) -More than half of German and European machinery exports to the United States could be hit by new tariffs if Washington expands its list in December, the German Engineering Federation VDMA said on Wednesday, urging the European Union to renegotiate the tariff deal.
The federation, which represents 3,600 machinery and plant engineering companies, said 56% of exports could be affected by steel and aluminium tariffs, up from around 40% after an initial expansion in August.
“This affects virtually all branches of mechanical engineering. And there is reason to fear that the US will continue this foul play,” VDMA president Bertram Kawlath said in a statement.
The VDMA said it has conveyed its concerns to European Commission President Ursula von der Leyen.
“The EU must not let up here. We urgently need renegotiations on this customs deal – it is anything but predictable and stable for our industry,” Kawlath said.
American tariffs impose complex bureaucratic requirements on German companies, the association said. Further expansion of the list could disrupt supply chains, ultimately impacting U.S. consumers. “The steel and aluminium tariffs will only result in losers on both sides of the Atlantic,” Kawlath said.
The VDMA said the U.S. Department of Commerce established a process in October to include more products on its list of aluminium and steel tariffs. The deadline for a decision according to its own protocol would be within 60 days, so at the latest in early December.
If the proposals are followed, up to 200 engineering products would require an import tariff of 50% on their steel and aluminium content, according to the association.
Misreporting the value or origin of these materials could lead to punitive tariffs of 200%, the VDMA said.
European-made machines are used in the American aerospace industry and for the production of weapons systems and semiconductors.
(Reporting by Natascha KochEditing by Kirsti Knolle and Frances Kerry)
