The European Commission is defending its 15% tariff deal with the US as a "decision for stability and predictability." However, a growing list of critical machinery products has been left vulnerable to the much higher tariffs on steel and aluminum derivatives.

Earlier this week, the Trump administration implemented 50% tariffs on hundreds of "derivative" steel and aluminum products, with imported injection, blow, and compression molds specifically included in the measure. The tariffs represent an expansion of the administration's trade policy approach toward materials it says are critical to American manufacturing supply chains.

Under the updated policy, the steel and aluminum content of these products will be subject to a 50% tariff, while the non-steel and non-aluminum components will face reciprocal tariffs.

A threat to European machinery companies

According to Verband Deutscher Maschinen- und Anlagenbau (VDMA), an association of about 3,600 German and European machinery and equipment manufacturers with a focus on medium-sized businesses, this now threatens the existence of many European machinery companies. The organization is pressing the European Commission to work toward a solution.

According to Oliver Richtberg, head of VDMA Foreign Trade, providing duty-free status for US products while extending punitive tariffs to European machinery would not only be unbalanced but also a direct slap in the face of one of the pillars of European industry.