FRANKFURT (dpa-AFX) – The German mechanical and plant engineering industry is criticizing the US government’s changed customs rules for steel and aluminum. “From April 6th, a flat-rate tariff rate of 25 percent will be due for many machines from Europe. In many cases, European mechanical engineering will be burdened more heavily than before – that is disappointing,” said the industry association VDMA.
What is particularly challenging for companies is that they do not have time to prepare for the change. The new regulations were announced on Thursday.
Risk of high punitive tariffs
Companies would still have to prove where the steel and aluminum used was cast or melted, explains the association. This is not affordable for many companies. The risk of punitive tariffs of up to 200 percent remains.
There is limited relief for some companies, as a customs cap of 15 percent applies to individual mechanical engineering products such as injection molding machines and conveyor technology until December 31, 2027. “Products that are predominantly made of steel and aluminum, on the other hand, will be placed in a significantly worse position. In the future, they will be subject to a 50 percent tariff on the entire product,” the statement says.
The Steel Association called the available information “still too vague to be able to draw a comprehensive picture of the effects on the steel industry in Germany.” There will be no fundamental change to the 50 percent tariff on direct steel imports into the USA. This is a significant burden for exports./isa/DP/he
