Hey fam, big drama in Brussels: Germany’s machinery lobby VDMA just slammed the EU’s plan to waive import taxes (a.k.a. tariffs) on U.S. industrial goods—calling it a direct slap in the face. 😮
Here’s the deal: the U.S. agreed to cut its car tariffs from 27.5% to 15% starting August 1. In return, the EU wants to drop duties on U.S. industrial products and buy more U.S. energy. Sounds fair? VDMA thinks not. ⚙️🔧
Why the fuss? Under the plan, European machinery makers could still face high duties, losing out to cheaper U.S. imports. VDMA warns this could lead to job losses, hurt innovation, and give U.S. competitors an edge. 😬
Breaking it down:
- U.S. cars: tariff cut from 27.5% to 15%
- EU side: duty-free on U.S. industrial goods
- Machinery sector: still under steep tariffs
VDMA says the EU Commission needs to hit the rewind button and renegotiate. Mechanical engineering products should get a permanent exemption—no ifs, ands, or buts. 🤝
For now, Brussels has to balance the risk of U.S. President Trump slapping 30% tariffs on European imports against protecting its homegrown industries. It’s a classic case of two giants flexing muscles—and Europe’s machinery sector is caught in the middle. 🌍💥
What do you think? Should the EU renegotiate or stick with the deal to keep U.S. tariffs at bay? Drop your thoughts below! 👇
Reference(s):
cgtn.com
