Mechanical engineering suffers from customs dispute

USA and China burden the European industry

Mechanical engineering in Europe is suffering from the ongoing tariff dispute between the USA and China. The main reason for this is the uncertainty in the People’s Republic. Companies are therefore currently rather reluctant to invest.

According to the VDMA, this will intensify competition and Chinese manufacturers are increasingly pushing into international markets. The association therefore demands that the parties return to the negotiating table and put an end to the disputes.

Google revokes Android license for Huawei

Meanwhile, the tariff dispute between the USA and China is entering the next round. For example, Trump announced that he would increase the punitive tariffs on products from China from 10 to 25 percent.

Companies are also increasingly coming into the crosshairs of the dispute. For example, Google is restricting Android support for Huawei smartphones. Users would then only be able to use Google applications such as Maps or Gmail to a limited extent.

However, the association also believes that the postponement of punitive tariffs on cars from the EU should be used intensively to find a solution. US President Donald Trump had postponed a possible introduction of punitive tariffs on cars by 180 days.

Europe feels the impact of tariff dispute

The association fears that a considerable amount is at risk for small and medium-sized industry in Europe: “Already today they are suffering from the ongoing tariff disputes and the associated uncertainty. The USA is the most important export market in the world for German mechanical engineering and also the largest foreign investment location.”

The VDMA advocates a free trade agreement with the USA so that industrial tariffs can be reduced.