Markets & Economy - vdma.eu

The Supreme Court's ruling against the US government's reciprocal tariffs is an important signal for rules-based trade. Nevertheless, uncertainty remains for European companies.

The Argentina-US trade and investment agreement aims to lower tariffs and trade barriers, limit unfair practices and strengthen cooperation and competitiveness.

On his first trip to China, Federal Chancellor Merz is being challenged: The basic prerequisite for cooperation is fair competitive conditions. Companies are coming under increasing pressure because China is systematically distorting competition.

The ASEAN region is developing into one of the most important growth zones in the global automotive market. With a population of around 680 million and an economic output on a par with Germany, the ASEAN region is becoming increasingly important.

There are various service providers and information providers that support companies in internationalising their activities. They often specialise in specific regions and/or topics.

Three interesting events are waiting for you in March. In addition to our online introduction to the new Five-Year Plan, we will also focus on competition strategy and employment restructuring.

China’s 15th Five-Year Plan for 2026–2030 is expected to be officially released during the annual “Two Sessions” meetings in Beijing in early March. Even before publication, the main policy directions are already emerging.

Since February 1, 2026, the euro has been the sole means of payment in Bulgaria, thus completing a key economic transition phase.

The mechanical engineering industry in Germany closed the year 2025 with zero growth in order books. Overall, the mood in the sector has recently brightened slightly.

The EU-Mercosur agreement is very important at a political level and the Brazilian economy sees it as a strategic impulse.

China remains the No. 2 export market for the German mechanical engineering industry, but a weak economy, increasing competition and geopolitical shifts are significantly changing the framework conditions.

The EU-Parliament has referred the agreement with Mercosur to the EU-Court of Justice for review. From VDMA's point of view, the trade agreement should nevertheless be provisionally applied in the near future to create planning security.

The EU's free trade agreement with India sends out a very important signal in favor of rules-based trade and against the law of the jungle. The elimination of customs duties and technical barriers to trade provides an urgently needed boost to competition.

HANNOVER MESSE's interactive formats can be used specifically to generate more qualified leads, increase visibility before and during the trade fair and enter into direct dialog with relevant target groups.

As global supply chains shift, ASEAN’s strategic importance grows. This publication offers data-driven insights, manufacturing trends, and member experiences shaping growth in Southeast Asia, in collaboration with GTAI and EDB.

ASEAN’s manufacturing sector finished 2025 on a high, recording its strongest quarter in four years. While growth moderated slightly, resilient demand, rising hiring and improved confidence point to solid momentum entering 2026.

This overview is intended to support the announcement, planning and participation in relevant trade fairs and exhibitions in the sub-sectors and groups of the VDMA.

VDMA President Bertram Kawlath visited Brazil. Talks on the EU-Mercosur agreement, company visits and institutional dialog strengthened the strategic partnership.

At the central stand, experts from foreign trade, the drive technology, fluid technology and electrical automation associations and the Manufacturing-X forum look forward to exchanging ideas with visitors and exhibitors.

The European Parliament's Mercosur decision is completely incomprehensible and complicates the process considerably. Small and medium-sized industrial companies urgently need EU free trade agreements that also come into force.

External shocks and home-grown problems are weakening the country's competitiveness.

Are you planning a visit to the Hannover Messe? Then we have good news for you: As a special service, the VDMA is providing you with free admission tickets - exclusively for our members and partners.

Contrary to online reports, the US Customs and Border Protection (USCBP) has not issued new guidelines for calculating the metal value in machinery products. Until new guidelines are published, the VDMA is sticking to its previous methodology.

VDMA Executive Director Thilo Brodtmann on the signing of the Mercosur trade agreement by the EU.

The time for reform debates is over - politicians must act now! Germany's industrial SMEs urgently need relief. And the EU must strengthen the internal market. Populist slogans for 'Europe first' do not help.

Japanese government announced a new tax reform 2026 for productivity-enhancing fixed asset investment.

Machinery orders rise by 7.0% in October, marking the second consecutive monthly increase. Several large orders for rail vehicles contributed to this growth.

New orders for industrial machinery and equipment in October show an increase of 9.7%, with domestic demand growing by 6.2% and foreign demand by 18.1% compared to the previous year.

According to the Bank of Japan's December business climate survey, the business climate index (DI: Diffusion Index) for large manufacturing companies improved by one point to 15 compared to the September survey.

After Mercosur, the conclusion of a trade agreement with India must now be at the top of the agenda. The aim is to dismantle customs duties and technical barriers to trade that noticeably hinder trade.

The EU-Commission's proposal to combat overcapacity in the steel sector has been presented. In the view of the VDMA, this proposal must also involve European steel consumers, who must not be burdened with additional costs and more bureaucracy.

The US border authorities are planning extensive changes to the ESTA application, which could make business trips to the USA much more complicated in future. The focus is on new requirements such as mandatory social media disclosures and extended data collection.

Saudi Arabia increases customs duties and introduces new tariff lines.

The agreement brings a gradual reduction in customs duties and complex rules of origin. Market access and first-mover advantage characterize the strategic orientation.

The VDMA Foreign Trade team keeps an eye on business opportunities in Western Europe/EU and Southeast Europe. Newsletter in English.

VDMA supports companies in opening up international markets by participating in trade fairs, among other things. In addition to its own trade fair stands in Germany, it offers companies the opportunity to exhibit at group stand (German Pavilions).

As part of the VDMA event series "The Dragon in the Room", representatives from member companies met in Berlin at the beginning of December to discuss how to deal with China and the resulting strategic activities.

In October, part of the VDMA team traveled to South Africa for a market visit. The aim of the trip was to visit local members and further expand the mechanical engineering network in one of the most dynamic economic regions in Africa.

The Indian government has postponed the introduction of various BIS certification requirements for certain product categories. Among other, the Ministry of Heavy Industries (MHI), which is responsible for mechanical engineering, has postponed the implementation of certain certification requirements.

The UK is no longer a member of the EU, which means that the EU's export controls for third countries apply here. Although they are rarely a problem, formal restrictions and procedures must still be complied with.

There are also EU export controls for business with the USA. Although they are rarely a problem, formal restrictions and procedures must still be observed.

The EU has postponed the introduction of the deforestation regulation for another year.

In recent years, India's economic development has been characterized by strong momentum, structural change and growing importance on the world stage, including rising employment and expanding private consumption.

The mechanical engineering industry wants to maintain production in Germany and Europe. However, better location conditions are urgently needed to prevent research, production and therefore innovation from migrating away.

Inflation, declining global competitiveness of Turkish exporters, high interest rates and price pressure from local and Chinese competitors are depressing the mood among VDMA members in Türkiye. Investments and growth are failing to materialize.

In our theme publications, you will find facts, figures and data related to vocational training, engineering courses, skilled workers, mechanical engineers and women in machinery and equipment manufacturing.

Batam’s BBK SEZ emerges as a cost-efficient hub for manufacturing, logistics, and digital services. When linked with Singapore and Johor, the tripartite sees potential to strengthen regional supply chains and reshape the future of a tri-hub network.

Mechanical engineering has long driven innovation, but somewhere along the way, it lost its ‘cool’ factor. On 21 Nov 2025, the 10th VDMA SEA Summit gathered industry leaders to explore how to attract and engage the next generation.

Ukraine is facing one of the biggest energy crises since the beginning of the war of aggression. The Federal Ministry for Economic Affairs and Energy is calling for support.

Industries in Southeast Asian markets are facing challenges: Is China's overcapacity threatening to deindustrialise the region?