Germany's VDMA machinery association has condemned the European Union's proposed tariff exemptions for U.S. industrial goods as "a direct slap in the face," escalating tensions over a trade deal critics call lopsided. The agreement, announced Thursday, would lower U.S. tariffs on EU-built cars to 15% starting August 1 in exchange for EU duty cuts on American products.
A Controversial Compromise
While EU governments view the deal as damage control against former U.S. President Donald Trump's threat of 30% tariffs on EU goods, the VDMA warns it disproportionately harms Europe's machinery sector. The lobby group argues the arrangement allows duty-free U.S. imports while maintaining punitive tariffs on 70% of EU exports.
Sector-Specific Concerns
"This isn't just unbalanced – it threatens one of Europe's economic pillars," a VDMA spokesperson stated, predicting job losses and competitive disadvantages for its 3,600 member companies. The group demands urgent renegotiation to permanently exempt machinery from tariffs.
The deal comes amid lingering trade tensions, with Trump having previously criticized the EU's $235 billion merchandise trade surplus with the U.S. Analysts note the agreement narrowly avoids broader escalation but leaves key industries vulnerable.
