Fewer Orders: US Tariffs Impact Machine Industry - VDMA Warns: German Machinery Sector Faces 5% Production Drop in 2025 Due to U.S. Tariffs
The German Engineering Federation (VDMA) has revised its outlook for the machinery sector, anticipating a five percent dip in production this year. This follows escalating trade tensions with the USA, which has imposed hefty tariffs on EU machinery imports. The sector, employing around 1.2 million people in Germany, is grappling with a 15 percent drop in orders from non-Eurozone countries. Conversely, orders from Eurozone nations have risen by 12 percent. The impact of U.S. President Donald Trump's 50 percent tariffs on steel and aluminum imports, including machinery components, is evident. The trade dispute, initiated under Section 232 of the Trade Expansion Act of 1962, has led to a significant decrease in orders for German machinery manufacturers in August. VDMA now predicts a slight growth of one percent by 2026, suggesting a long road to recovery for the sector. The trade dispute's effects are far-reaching, with employment and production both feeling the strain. The industry eagerly awaits resolution of these tariffs.
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