Core Viewpoint - The trade agreement between the EU and the US is deemed "worthless" for the German and European machinery manufacturing industry, with potential severe impacts from the expansion of US steel and aluminum tariffs on machinery exports [1][3]. Group 1: Impact of Tariffs - The German Machinery Manufacturers Association warns that if the US expands the tariff scope in December, approximately 56% of German machinery exports to the US will be affected, impacting nearly all sectors of the machinery industry [3]. - The US plans to impose a 50% tariff on about 200 types of machinery products, with the worst-case scenario potentially leading to punitive tariffs as high as 200% [1]. - In August, the US expanded the range of EU machinery products subject to steel and aluminum tariffs, affecting around 40% of the total machinery exports from Germany and the EU to the US [1]. Group 2: Broader Implications - The tariffs not only disrupt trade between the US and Europe but may also undermine the stability of global manufacturing supply chains [5]. - The association emphasizes that European-manufactured machinery plays a crucial role in US production, particularly in sectors vital to national security, such as weapon systems, semiconductors, and aerospace [3].

Group 1 - The European Union will suspend two countermeasures against U.S. tariffs within six months based on an agreement reached with the United States [1]