Tariffs on steel and aluminum hit European machine producers

As new Trump Administration tariffs on steel and aluminum began to bite this week, European machine producers said the policy change came so quickly they have not had time to adjust, according to a statement from trade group VDMA.
βStarting April 6, a flat tariff rate of 25 percent will apply to many machines from Europe. In many cases, this will place a heavier burden on the European machinery industry than before -- which is disappointing. What is particularly challenging for our companies is that they are not being given time to prepare for the change,β Oliver Richtberg, Head of the Foreign Trade Division at the VDMA, said in a release.
One of the challenges is a requirement that companies provide proof of where the steel and aluminum used in the machinery was cast or smelted, even for small components like screws, the group said.
βFor certain machinery products, such as injection molding machines and conveyor technology, a tariff cap of 15 percent applies for a limited period until December 31, 2027. This provides limited relief for some companies. Products consisting predominantly of steel and aluminum, on the other hand, are significantly worse off. For these, a 50 percent tariff will apply to the entire product in the future.β
The VDMA represents 3,500 German and European mechanical and plant engineering companies, which employ around 3 million people in the EU-27.
The new policy comes after President Donald Trump signed a series of executive actions on April 2 to set Section 232 tariffs on pharmaceutical products and charge a flat 25% rate for steel, aluminum and copper derivative products, according to New York-based shipping and logistics provider Sobel Network Shipping.
