Brussels, October 16, 2025 – In a conversation with Trade Commissioner Maroš Šefčovič, VDMA President Bertram Kawlath urged the EU to renegotiate the expansion of U.S. tariffs on steel and aluminum products with the United States. Machinery products must be excluded from these tariffs, as they pose a direct threat to the industrial SME sector. This is confirmed by statements from numerous VDMA member companies.
Regarding the meeting with EU Commissioner Šefčovič, VDMA President Kawlath stated:
VDMA member companies on the impact of U.S. tariffs:
“A stable and predictable trade policy is essential for internationally operating industrial companies. The special tariffs on steel and aluminum cause significant administrative burdens and may counteract the onshoring of production. It is crucial to ensure U.S. farmers have access to affordable agricultural machinery. Therefore, targeted exemptions for agricultural machinery from Section 232 tariffs and a predictable regulatory framework are vital. Additionally, CLAAS manufactures in the U.S. for export as well, so tariff refunds are urgently needed to improve competitiveness.”
“The flat tariff of 15 percent negotiated between the U.S. and the EU applies to our products only in exceptional cases, as many of our products have since been added to the Section 232 derivative list. Our systems are primarily made of steel, which is still subject to a 50 percent tariff. Adding to the burden, we must calculate and prove the exact raw steel content of all individual components. We are required to specify where the steel was melted and cast; otherwise, the goods cannot be cleared and delivered. The enormous bureaucratic effort and the additional costs on top of the tariffs are significant and painful competitive disadvantages.
Further uncertainty arises from the fact that the tariff deal between the EU and the U.S. is only valid for four months – after which the Section 232 tariffs will be reviewed again. Thus, the deal has not delivered what the market urgently needs: clarity, reliability, and predictability. The tariffs are detrimental to both our American customers and ourselves, increasing inefficiency. Ultimately, delivery times are extended and our products become more expensive for U.S. customers – even though they urgently need them for the intended re-industrialization.”
“The current U.S. punitive tariffs – especially the additional burden of 50 percent tariffs on aluminum – directly affect our axial fans and impair our transatlantic business relations.
As a globally active company, we support the VDMA’s call for renegotiations. Only reliable framework conditions can ensure the international competitiveness of mechanical engineering.”
“The EU has responded to the U.S. tariffs with a €93 billion package. But countermeasures alone are not enough. The EU must demonstrate that it is willing to actively defend the interests of its key industries. What we need is a strategic realignment of European trade policy based on reliability, fairness, and long-term partnerships – not short-term deals that ultimately only create uncertainty. We are experiencing a significant increase in costs and a considerable administrative burden that heavily strains our export department. These are resources we urgently need elsewhere. We therefore fully support the VDMA’s call for renegotiations with the U.S. government and the European Commission.”
“In a competitive environment, free markets and healthy competition lead to better products and lower prices. Trade restrictions such as tariffs create additional bureaucracy, hinder quality and innovation, and lead to price adjustments throughout the supply chain – resulting in higher costs for end customers. In close cooperation with our team in the U.S., we are doing everything we can to continue supplying our customers with agricultural machinery for successful, efficient farming, thereby contributing to food security in the U.S.”
“The classification of many agricultural machines as so-called steel products and the associated U.S. tariffs hit us completely unexpectedly. Our exports to the U.S. – our most important foreign market – are becoming significantly more expensive. This undermines our competitiveness precisely where we have been active for decades. There is great concern: our customers will hardly accept such price increases for new machines and spare parts for existing equipment, and in the end, this threatens not only orders but also jobs in Germany.”
“With 25 percent of our revenue coming from the U.S. market, it is essential for ENGEL. However, the ongoing uncertainty regarding punitive tariffs on steel and aluminum is hindering investment decisions. Foreign injection molding machine manufacturers are indispensable, as there are no significant domestic producers – a contradiction to current U.S. tariff policy.”
“The announcement of 50 percent tariffs on steel and aluminum components of plastic machinery will have a significant impact on us and our customers. According to the Plastics Industry Association, over 90 percent of the machines used for plastics processing in the U.S. come from overseas. Defining an entire injection molding machine as a ‘steel derivative’ is a gross misjudgment. Importing finished nails instead of steel rods may be considered a steel derivative – but not complex technical products like injection molding machines.
The 50 percent tariff on the ‘steel value of the machine’ now comes on top of the 15 percent for imported machinery products.
“With the recently announced expansion of U.S. tariffs on steel and aluminum products, product groups within the Liebherr portfolio are also affected. The exact impact and implementation of the new regulations cannot yet be fully assessed. We are currently working intensively to gather and evaluate all relevant information and to initiate the necessary steps – always with the goal of complying with all applicable regulations.
For our product segments in earthmoving and material handling, tariffs could range from the initially expected 15 percent up to 20 percent, depending on the customs classification of the final product and the proportion of steel and aluminum used.
The challenge lies in accurately determining the customs-relevant share of these materials in each final product. The tariff regulations available to us allow for a wide range of interpretations, which poses the risk of incorrect customs declarations – potentially resulting in additional tariffs of up to 200 percent of the product’s total value.
A precise and reliable calculation of the dutiable aluminum and steel content of each product – which is essential given the financial implications – is currently proving to be very challenging and time-consuming.
During this process, we are forced to temporarily halt deliveries of Liebherr earthmoving and material handling products to the U.S. to avoid the risk of miscalculations and corresponding penalty tariffs.”
“Our company supplies braiding machines for various applications and industries, including the medical sector. The U.S. market has gained significant importance. Our American customers are expanding their manufacturing capacities, including for export. Our machines are currently subject to a 15 percent tariff. Spare parts and components (such as motors) may be affected by additional tariffs on a case-by-case basis.
Due to the large number of parts and components, checking whether and to what extent they are subject to these tariffs is very time-consuming.
Ultimately, the tariffs are likely to reduce U.S. customers’ willingness to invest and/or increase the cost of products made in the U.S. using our machines. This has clearly not been adequately addressed by the U.S. administration in the context of the ‘tariff deal.’”
“The flat tariffs of 15 percent negotiated between the U.S. and the EU affect the majority of our product portfolio. In addition, our flexographic printing machines fall under the Section 232 derivative list due to their tariff code.
This regulation forces us to calculate the exact steel and aluminum content of each individual component and to prove the origin of the raw materials – a bureaucratic challenge without clear guidelines from the U.S. customs authority.
The lack of directives and value indices for pricing leads to significant additional efforts, which come on top of the tariffs and result in painful competitive disadvantages.
Moreover, there is considerable planning uncertainty for machines with longer delivery times, as the actual tariff rate at the time of import remains unclear.
In the interest of our valued American customers – who often have no local alternatives – we therefore demand that our machines be subject only to the base tariff of 15 percent and not additionally fall under Section 232.
Furthermore, we advocate for greater reliability, predictability, and a simplified customs process in international trade.”
Bertram Kawlath, VDMA President
VDMA represents 3,600 German and European companies in the mechanical and plant engineering sector. The industry stands for innovation, export orientation, and small and medium-sized enterprises. The companies employ a total of around 3 million people in the EU-27, more than 1.2 million of them in Germany alone. This makes mechanical and plant engineering the largest employer among the capital goods industries, both in the EU-27 and in Germany. It accounts for an estimated turnover of around 870 billion euros in the European Union. Around 80 percent of the machinery sold in the EU comes from a manufacturing facility in the internal market.