US–EU Trade Deal Tariffs Threaten European Plastics Machinery Exports
Signed on July 27 in Scotland by US President Donald Trump and European Commission President Ursula von der Leyen, the deal also includes commitments for the EU to purchase $750 billion in US energy and for US investments in Europe to reach $600 billion by 2028. While hailed by US officials as a boost to American manufacturing and energy dominance, European industry leaders see substantial risks.
Massimo Margaglione, president of Amaplast, representing over 170 Italian manufacturers, criticized the agreement as “more like a surrender” than a deal. With over 70% of Italy’s plastics and rubber machinery exported internationally and about 10% destined for the US, the new tariffs could dramatically increase costs for American factories relying on European equipment and complicate supply chains.
The tariffs come at a challenging time amid currency volatility and global economic uncertainty. Amaplast is urging both the Italian government and the European Commission to clarify which products might be exempted from tariffs, hoping to include plastics and rubber machinery in such exemptions.
Further compounding industry worries is the failure of the agreement to remove the longstanding 50% US tariff on European steel. The European Steel Association (EUROFER) highlights that these steel tariffs continue to burden manufacturers and calls for joint EU–US efforts to tackle global steel overcapacity and stabilize the market.
According to a recent survey by Germany’s IFO Institute, a majority of German manufacturers of rubber, plastics, and machinery report negative impacts from US tariffs, with many postponing or canceling planned investments in the US. At the same time, several companies are turning their focus toward expanding opportunities within the EU and emerging markets such as India.
IFO experts emphasize that to maintain global competitiveness, European policymakers must ensure stable regulatory frameworks and facilitate access to alternative markets.