Economic blow: US and NRW tariffs labeled as detrimental to the economy
The recently announced tariff agreement between the US and the EU has avoided an immediate trade war, but it still maintains high tariffs that negatively impact the competitiveness of EU companies, including those in North Rhine-Westphalia (NRW), Germany.
Companies in NRW, especially in chemical manufacturing and export-heavy industries, are expressing concerns about the continued tariff burden. Ralf Schlindwein, Business Manager "International" at the IHK Düsseldorf, states that the tariff agreement is not satisfactory. Gerhard Schröder, CEO of Aluminiumwerk Unna AG, a company specializing in the production of aluminum tubes, has already lost some orders due to the higher tariffs on steel and aluminum since June.
Schlindwein, who is one of the main suppliers of aluminum tubes to the US market, received many questions immediately after the announcement of the tariff agreement. Despite losing orders, customers in the USA are currently urgently looking for manufacturers of aluminum tubes, and short-time work or negative working hours are not an issue in his company at the moment.
NRW’s Economics Minister Mona Neubaur (Greens) evaluates the agreement as needing to "swallow some frogs." She has been active in initiatives related to industry, climate, and economic transformation in NRW, reflecting a general government stance committed to supporting industries amid external economic pressures. However, specific direct comments from Neubaur on the latest US-EU tariff deal were not found in the search results.
Industry groups like Germany’s VCI underscore the need for further tariff reductions to support reindustrialization and transformation efforts in both the EU and US chemical sectors. Companies in NRW are pushing for the tariffs to be gradually reduced.
In contrast, Lanxess AG, a chemical company based in Cologne, welcomes the agreement between the EU and the USA. The old tariffs are still in effect, according to Schlindwein. Achim Post, the state chairman of the SPD, criticizes the tariff agreement as harmful to the economy.
The tariff dispute between the US and the EU has resulted in a basic tariff rate of 15% on most EU imports into the USA. This agreement applies to cars, semiconductors, and pharmaceutical products. Higher tariffs will remain in place for steel and aluminum, at 50% since June 4.
Targeted investment in Europe’s competitiveness is now a focus, according to Neubaur. The deal provides relief from further escalation but maintains significant costs for NRW’s export businesses. The German government, including regional leaders like Neubaur, is expected to pursue policies to offset the additional burden from tariffs.
| Aspect | Details | |----------------------------------|------------------------------------------------------------------------------------------------| | Impact on NRW economy | High tariffs hurt export competitiveness of NRW companies, especially in chemicals and manufacturing. | | Company reactions | Concerned about tariff costs; call for tariff reductions to sustain competitiveness. | | NRW Economics Minister’s role | Mona Neubaur focuses on economic stability and transformation but no direct quote on this deal found; she oversees related policy areas. | | Industry calls | German chemical groups seek quick publication of detailed deal terms and further negotiations. |
- The tariff agreement between the US and the EU has imposed a high tariff burden on NRW companies, particularly those in the chemical manufacturing and export-heavy industries, which are expressing concerns about maintaining their competitiveness.
- Industry groups like Germany’s VCI are advocating for further tariff reductions to support reindustrialization and transformation efforts in both the EU and US chemical sectors, with companies in NRW pushing for the tariffs to be gradually reduced to offset the additional burden from tariffs.
