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Trade conflicts, bureaucracy and rising costs are slowing down the mechanical engineering sector. Production will fall by 5 percent in 2025. VDMA President Kawlath calls for an "autumn of action".
Instead of promoting innovation in the single market, EU digital laws have become hurdles in many places. The EU legislator must therefore use the digital omnibus to fundamentally correct digital regulation.
The EU is finally making progress on the Mercosur agreement. The decision to treat the trade part separately is particularly helpful. Now it is up to the EU Council and Parliament.
EMO 2025 with Alliance Country Canada
The EU proposes tariff exemption for US products - while punitive tariffs are extended to European machinery. The EU Commission urgently needs to renegotiate; mechanical engineering products must be permanently exempted from sectoral tariffs.
The EU Commission defends the 15 percent "tariff deal" with the USA. But more and more products are falling under the much higher steel and aluminum tariffs. The VDMA is urgently calling on the EU Commission to work towards improvements.
Exports in the mechanical and plant engineering sector fell by 3.4% year-on-year in the first half of the year. The tariff conflict between the EU and the USA has left its mark. Europe is now all the more challenged to fight for open markets.
The "tariff agreement" between the EU and the USA is hurting companies, the supposed planning security has been bought at a high price. In the end, it will probably be American customers who pay the bill. The EU and the German government must act now.
The EU has updated the content of one of its two embargo regulations against Sudan. Among other things, two new companies have been added to the blacklist.
A politically motivated ban on exports of rare earths from China is not compatible with a trusting trade relationship. The EU must show strength towards China and take action.
On July 18, 2025, the EU published its 18th sanctions package, which also includes measures against Belarus. It includes two amending regulations. Some of the tougher sanctions are also relevant for the mechanical and plant engineering sector.
On July 18, 2025, the EU published its 18th sanctions package against Russia. The measures (2 amending regulations) all come into force on 19.07.2025. Some of the tightened sanctions are also relevant for the mechanical and plant engineering industry.
Good news for European companies: the EU's free trade agreement with Indonesia is an important success for more rules-based trade worldwide.
US punitive tariffs of 30 percent would be damaging for all parties involved, for the EU and the USA. Investments and reindustrialization would be slowed down.
When it comes to raw material stocks in Europe, a broad perspective is needed. Stockpiling is one component, the circular economy another.
If export goods are not delivered, there is a risk of high losses - especially for custom-made products. Hermes Cover protects against losses due to sanctions or geopolitical conflicts, among other things.
From the VDMA's perspective, visa policy and technical interfaces are among the top issues for German-Brazilian cooperation in mechanical engineering. The German-Brazilian Business Days provide an opportunity for exchange.
Chinese companies often enjoy competition-distorting advantages and subsidies. In a new position paper, the VDMA makes demands on German and European politicians to counteract these disadvantages.
The new Chinese export controls on rare earths and some products made from them are increasingly becoming a massive problem. China cannot keep up with issuing the export licenses that are now required.
We always report on changes to major embargoes or embargo changes with significant relevance for mechanical and plant engineering at short notice. Here is an overview of less relevant embargo changes since January 2025.
The tabular VDMA overview "Country-related embargoes" makes it easy to find out which countries are currently subject to EU embargo measures and what the current status of the embargo texts is.
The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.
With effect from May 29, 2025, the EU has largely, but not completely, lifted its sanctions against Syria. This is in response to the change in US policy towards Syria announced by President Trump in Saudi Arabia.
Letters of credit or advance payment are not very attractive in a competitive environment. Credit insurance for payment terms is an alternative. These are also an entry into export financing.
The EU provides consolidated versions of its sanctions regulations. In the case of the Russia sanctions, the consolidated legal texts have now been updated to the 16th sanctions package.
On May 20, 2025, the EU published its 17th package of sanctions against Russia. The measures (5 amending regulations) all come into force on May 21, 2025. Some of the tightened sanctions are also relevant for the mechanical and plant engineering industry.
The EU-Commission launches public consultations on possible countermeasures in response to Trump's introduction of “reciprocal” tariffs and tariffs on cars and car parts from the EU.
In light of Trump’s tariffs, analysts highlight ASEAN’s risks from trade tensions but remain optimistic about the region's resilience. Singapore’s semiconductor industry stays cautious, exporters diversify suppliers and customers amid uncertainties.
The Shanghai-Germany Manufacturing Industry Exchange Dialogue was held on April 1, 2025, at Hannover Messe, co-organized by the Shanghai Municipal Government and VDMA.
New tariffs for European goods in trade with the USA.
The EU is right to keep a cool head in response to US President Donald Trump's punitive tariffs. An open trade war would serve no one. However, the EU should use the momentum for new free trade agreements.
VDMA President Bertram Kawlath calls for government reform to reshape the labor market. Security also means increasing industrial competitiveness.
To ensure the competitiveness of the mechanical and plant engineering industry, the VDMA is calling for reliable economic framework conditions. A strong industry means a strong economy.
The EU's 16th sanctions package against Russia and Belarus has been somewhat lost in the excitement surrounding US President Trump. But there are new risks and details that VDMA members have to deal with.
Donald Trump and Elon Musk may appear to be saviors - in reality, they are more like "wrecking balls". VDMA President Bertram Kawlath argues against this in an interview.
The Chinese government has taken countermeasures in response to the US government's announcement that it will impose an additional 10 percent tariff on all imports from China.
The VDMA has addressed extensive demands to politicians. What do the parties think? Our overview shows the extent to which the mechanical and plant engineering industry is taken into account in the programs for the federal election on February 23, 2025.
Less bureaucracy, a maximum tax rate of 25% and an efficient infrastructure are essential to ensure competitiveness. Germany will only remain a strong industrial location through bold reforms.
The U.S. Department of Commerce issued the final rules that prohibit the sale or import of vehicles equipped with hardware or software associated with Chinese or Russian-controlled entities.
Donald Trump's economic program could be a test of strength for Europe. This makes it all the more important that the EU now acts as one, especially on trade issues.
The EU Commission agrees to postpone the Deforestation Regulation by one year following massive criticism.
US President-elect Donald Trump is threatening the EU with tariffs, while in Germany the traffic light coalition is falling apart. Difficult times for the industrial SME sector - which must not experience six months of political standstill.
he posting of employees in Europe must not be a bureaucratic madness. The EU Commission's proposal for an eDeclaration is right, but further measures must follow.
Donald Trump's second term in office will be a greater challenge for the mechanical engineering industry than his first presidency. The USA remains an attractive market, but Trump's tariff plans will have a noticeable impact on trade.
Foreign guests face various challenges when applying for a visa and entering Germany. Inviting companies can support them.
India is an important growth market for the European mechanical engineering industry. At the same time, India is one of the last high-duty countries in the mechanical engineering sector. A free trade agreement is therefore urgently needed.
The EU Commission proposes postponement of the Deforestation Regulation by one year following massive criticism.
The deforestation regulation forces us to act.
Competition with China is also becoming tougher on third markets. The VDMA position paper formulates expectations of politicians with regard to China.
Chinese companies now have a global presence and dominate some global markets
Russia is trying by all means to covertly procure sanctioned goods in the EU. This creates a risk of unintentionally becoming involved in sanctions violations. VDMA Foreign Trade provides tips on how to react to this.
The US wants to reduce trade dependence on malign actors while reaching agreements with the EU and other trading partners with shared values. Does this signal a shift with implications for German industry?
Germany and Italy maintain close economic relations, especially in mechanical engineering. The new VDMA office in Bologna is intended to be a local point of contact.
Partner, competitor and system rival: China's role has changed dramatically. While still enormously important as a sales market, Beijing is at the same time making clear its claim to determine the rules of global trade.
VDMA study shows need for catching up (or pent-up demand) for German financing offers
Africa is in the focus of politics and offers the economy many opportunities. In order for German interests and companies to survive in competition with China, among others, the VDMA is calling for adjustments from policymakers.
The EU and U.S. should finally bury the hatchet on this half-decade-long trade dispute that has triggered uncertainty and increased costs for manufacturers in both markets.
There are many reasons for European companies to think about diversification of supply chains, production sites and sales markets. Indonesia is increasingly coming into focus in the machinery and plant engineering sector.
What are the effects of the IRA on the American market and what are the consequences for the European mechanical and plant engineering industry? Current VDMA publication provides an overview.
Turkey has announced that only "Türkiye" will be used as the country name in international correspondence.
VDMA member companies consider different strategies to minimize decoupling risks in both markets. The full report is available for download.
VDMA Foreign Trade supports and accompanies member companies in expanding foreign sales into future markets with potential.
Up-to-date information on all issues related to export control, embargoes and sanctions, tailored to the information needs of management.
Up-to-date information on all issues related to export controls and sanctions.
Up-to-date information on doing business with Iran.
In the daily political debate, good arguments are the be-all and end-all. In the VDMA's brief positions you will find short statements on current controversial issues.
The VDMA offers events on current foreign trade topics, on the web and live on site.
New fact sheet highlights differences for obtaining the respective customs simplification procedures
Export control is sometimes underestimated, sometimes overestimated. VDMA members can get advice and help from the VDMA to identify and comply with export restrictions and avoid unnecessary expense.
The VDMA's office in Brussels sees itself as a bridge between industry and EU policy.
The VDMA Foreign Trade team supports VDMA member companies in the internationalization of mechanical and plant engineering. We provide you with practical support in all matters relating to foreign business.
Where answers count and expertise is required: At VDMA Photovoltaik Equipment, you receive all the services the industry needs in Germany. Professional and reliable, we are the drive and backing for your company. We catch the top themes and create values for you.
China, India, Japan, USA, Brazil or Singapore: Our VDMA liaison offices abroad help you with your commitment in the most important foreign markets.
