Many of the approximately 5,000 companies in the sectors of the German Steel and Metal Processing Association (WSM) deliver to the USA. The doubling of US tariffs on parts containing steel and aluminum is hitting them with full force. "The latest scenario turns their exports into a fiasco and further reduces the companies' battered competitiveness. The EU must do all it can to find a solution," demands the WSM. The trade conflict also shows how important it is for the German economy to become more competitive through better framework conditions. Only then can it serve alternative sales markets, according to the association.
Suppliers have to wrestle with additional costs
"US producers will try to find suppliers that are not affected by the tariffs. If they find one, the German supplier is probably out. If they don't find one because the part is too special, the grueling struggle for the additional costs begins," says WSM Managing Director Christian Vietmeyer. The EU must therefore do everything it can to resolve the customs conflict. It is not uncommon for supply contracts to include the addition that the supplier must bear customs duties. "With 50 percent and low margins, this is impossible and puts companies under enormous pressure to negotiate," says Vietmeyer.