US tariff tightenings threaten German foundries

The German foundry industry faces further major challenges in international competition: since August 18, tariffs of 50 percent have been imposed on more than 100 export products to the US, placing a massive burden on small and medium-sized enterprises that are already under severe pressure. The BDG is now calling for effective protection and political support.

In the course of the latest negotiations between the EU and the US, little attention has been paid to the fact that the US administration has extended the existing 232 tariffs of 50 percent to more than 400 tariff items. The foundry industry in Germany and Europe, which is already under considerable economic pressure, is particularly affected. Since August 18, more than 100 products are now subject to a 50 percent tariff on exports to the US, instead of the previous 15 percent. These include key products such as combustion engine blocks, cylinder heads, and pump housings.

"Effective protection for the foundry industry as well"

This massive increase in tariffs hits the German foundry industry at an extremely vulnerable time. The US is by far the most important export market, accounting for around 15 percent of total exports outside the EU. In addition to losses from direct US business, there are considerable burdens from existing US tariffs on important customer groups such as cars and mechanical engineering, and diversion effects from other supplier countries such as Turkey into the completely unprotected EU market.

“Politicians must not abandon the German foundry industry, which is heavily dominated by small and medium-sized enterprises, with this further tariff blow,” says Dr. Martin Theuringer, CEO of the BDG. “The focus must now be on creating effective protection against trade diversion for the foundry industry as well.”

Specifically, the BDG is calling for the interests of foundries to be taken into account in the follow-up solutions to the steel safeguards expiring in 2026.

The German foundry industry is a pioneer in the circular economy and a leader in Europe. It employs 70,000 people and generates around 12 billion euros annually.

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