Germany’s powerful VDMA machinery lobby has slammed the EU’s proposed tariff exemptions for U.S. goods as a "direct slap in the face," warning of job losses and competitive risks for Europe’s industrial backbone. The fiery response comes after Brussels offered duty-free access to select American products in exchange for reduced U.S. tariffs on EU cars.
Deal or No Deal? 🤝💼
The EU Commission’s plan, announced Thursday, would lower U.S. car tariffs to 15% from 27.5% starting August 1. While it avoids Trump’s threatened 30% tariffs on EU goods, critics call it lopsided: Europe must buy more U.S. energy and cut duties while Washington keeps tariffs on 70% of EU exports.
VDMA Sounds the Alarm 🚨
Representing 3,600 firms, the VDMA warned the deal could cripple Europe’s machinery sector – a €800B industry employing 12M people. "Extending punitive tariffs to European machinery while granting U.S. products duty-free access is unbalanced," they stated, urging Brussels to renegotiate.
Trump’s Trade Shadow 🇺🇸🌐
The deal follows years of tension, with Trump previously calling the EU a U.S.-targeting "consortium" and criticizing the $235B trade deficit. While EU governments accept it as damage control, the VDMA argues it sacrifices key industries for short-term peace.
As trade wars heat up, one thing’s clear: Europe’s factories are digging in for a bumpy ride. 🏭🌪️
