🚨 Big news! Germany's VDMA machinery lobby has slammed the EU Commission's plan to exempt U.S. industrial goods from tariffs. They call it a "direct slap in the face" and demand an urgent renegotiation to protect European engineering.
The European Commission wants to lift duties on U.S. machinery in return for the U.S. cutting car tariffs on EU-made vehicles from 27.5% to 15%, effective August 1. This truce between the world’s two biggest trade partners is a win for some, but the VDMA sees an old plot twist.
It’s like trading your last pizza slice for a soda you didn’t order 🍕🥤– nobody wins that swap! The VDMA warns that without clear, permanent exemptions for mechanical engineering products, Europe’s machinery sector could face job losses and a competitive slump.
- The EU will scrap duties on U.S. goods and buy more American energy products.
- The U.S. keeps tariffs on about 70% of EU exports.
- Germany’s machinery pros say this imbalance threatens thousands of jobs.
Some EU governments accept the deal as the lesser evil, fearing Trump-era plans to impose 30% tariffs on almost all EU goods. But for the VDMA’s 3,600 member firms, the price is too high.
🔍 What’s next? The VDMA is urging Brussels to head back to the table and firmly exempt mechanical engineering products from any sectoral tariffs. Business leaders, students, and globe-trotters in the trade world will be watching this story closely. Stay tuned! 🌍
Reference(s):
cgtn.com
