Mechanical engineers in distress: US tariffs threaten existential fears!

Mechanical engineers in distress: US tariffs threaten existential fears!

The additional tariffs that the US government recently introduced on steel and aluminum are increasingly having a negative impact on mechanical engineering in Europe. Loud Deutschlandfunk The tariffs were increased to 50 percent, which significantly worsened the competitive conditions for European companies. Components such as motors, pumps and industrial robots, which are essential for machine production in the USA, are particularly affected. Many companies therefore fear that their US business is at serious risk.

In July 2025, the EU and the USA agreed on an agreement in principle that would impose a 15 percent tariff on most imports. But the high tariffs on steel and aluminum stand in the way and act as a stumbling block for the entire sector. Oliver Richtberg, head of the foreign trade department at the VDMA, said that the tariff increases are putting a heavy burden on mechanical engineering and threatening the existence of many companies.

Details of tariff increases

Of particular concern is the expansion of US tariffs to 407 product types, which are also affected by the 50 percent. The VDMA has already sent a letter to Ursula von der Leyen, President of the European Commission. This letter urgently warns that the existing trade agreement and the US special tariffs endanger the existence of many mechanical and plant manufacturers. Industry representatives are calling on the EU Commission to actively support the abolition of tariffs on steel and aluminum derivatives. In addition, an exemption for machinery and equipment from future sectoral tariffs should be considered.

The new tariffs will also significantly increase the bureaucratic burden on companies. Companies have to provide extensive evidence of the steel melt, the origin of the castings and the metal content. A large number of companies complain about this additional effort, which represents a major burden, particularly for small and medium-sized companies. These problems are also manifested in the automotive industry, where motorcycles from the EU face tariffs of around 30 percent based on the steel parts they contain.

U.S. Treasury Secretary Scott Bessent estimates that revenue from the tariff hikes could exceed $500 billion a year in the future - a significant increase from the previous estimate of $300 billion. This development is a cause for concern for European machine builders, particularly as they have relied on traditionally strong business in the US market.

The situation remains tense and the VDMA, which represents 3,600 companies in Europe, is faced with the challenge of finding adequate solutions to ensure the industry's competitiveness in the international market. The EU's next steps in customs policy will be crucial for many companies.