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The tabular VDMA overview "Country-related embargoes" makes it easy to find out which countries are currently subject to EU embargo measures and what the current status of the embargo texts is.

The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.

With effect from May 29, 2025, the EU has largely, but not completely, lifted its sanctions against Syria. This is in response to the change in US policy towards Syria announced by President Trump in Saudi Arabia.

This article provides an overview of the wide range of support available to German companies wishing to enter the African market. The overview is updated regularly, but does not claim to be exhaustive.

Sentiment among companies in the mechanical and plant engineering sector in Baden-Württemberg remains low

Incoming orders in the mechanical engineering sector in the 1st quarter and especially in March increased sharply. However, this is only temporary due to major orders from the chemical, marine machinery and telecommunications sectors.

The mechanical engineering sector started the year with a subdued export result. March at least showed a slight upward trend. However, the weaknesses in the Chinese and EU markets remain serious.

The EU provides consolidated versions of its sanctions regulations. In the case of the Russia sanctions, the consolidated legal texts have now been updated to the 16th sanctions package.

On May 20, 2025, the EU published its 17th package of sanctions against Russia. The measures (5 amending regulations) all come into force on May 21, 2025. Some of the tightened sanctions are also relevant for the mechanical and plant engineering industry.

The EU internal market needs ambitious reforms. The EU internal market strategy aims to improve Europe's competitiveness, but remains too vague in detail.

Foreign exchange market was deregulated in March 2024. But expectations that exports would pick up afterwards were not fulfilled. VDMA members in Egypt nevertheless report good business.

Saudi Arabia in transition offers both challenges and opportunities. Local presence remains crucial, and not just because of increasing Chinese competition.

The new Trump tariffs are not only raising costs for the machinery sector, but creating confusion and uncertainty among manufacturers that export to the United States.

The foreign trade department informs you about the latest developments in exports and supports you in accessing difficult markets. We support your international activities with offices worldwide and practical information.

Budget 2025: Tech Industry bats for deeptech fund, tweaks in safe harbor rules ‘threshold

Budget may trigger consumption revival as purchasing power increase for middle class: FMCG Companies

India ready to collaborate openly to build inclusive global energy future: Union Minister for Petroleum and Natural Gas

19,826 km roads constructed so far under Bharatmala: Union Minister of Road Transport and Highways

From 7-11th April Oliver Wack from VDMA Foreign Trade visited Japan. The main topic was to prepare VDMA President's Bertram Kawlath's visit to Japan in September.

The webinar on May 20, 10:00 a.m. to 12:00 p.m., is the first in a series of events organized by the Agency for Business and Economic Development (AWE), VDMA e.V. and Germany Trade & Invest (GTAI).

The Shanghai-Germany Manufacturing Industry Exchange Dialogue was held on April 1, 2025, at Hannover Messe, co-organized by the Shanghai Municipal Government and VDMA.

New tariffs for European goods in trade with the USA.

VDMA President Bertram Kawlath calls for government reform to reshape the labor market. Security also means increasing industrial competitiveness.

In turbulent times, good trade relations are just as important as innovation. With the guest country Canada and the focus on the use of artificial intelligence in production, Hannover Messe 2025 has set the right signals.

The USA is much more than just a major sales market for industry in Europe. The change in trade policy under Donald Trump is hitting companies all the harder. Europe must now show unity and strength - in every respect.

The tougher the international competition, the greater the demand for payment terms from the manufacturer. Currently, the disruptive measures taken by many national governments are increasing the need for export cover.

The US government's tariff policy could result in a 4% drop in production by Japanese car manufacturers.

Tariffs of 25 percent on the import of cars and car parts have been announced. They are due to come into force starting May 3.

Mitsubishi Corporation plans to build data center on the site of the former JFE blast furnace with an investment volume of JPY 150 billion (EUR 937 million).

Malaysia and Singapore launched the Johor-Singapore Special Economic Zone (JS-SEZ) in January 2025. The new economic initiative aims to drive significant business growth with as many as 50 projects and create 20,000 skilled jobs.

In February, the ASEAN manufacturing purchasing managers' index (PMI) rose to 51.5, the highest in seven months, from 50.4 in January. This marks the highest reading since July 2023.

The VDMA is intensifying its activities in sub-Saharan Africa and is looking forward to new support in the team of the foreign trade department

New orders for machinery in Japan fell by 3.5% in January compared to the previous month, while the order backlog reached a record high due to a shortage of labor and transportation capacity.

On March 12, the USA imposed tariffs of 25 percent on all steel and aluminum products, including some steel and aluminum derivatives. This affects the mechanical and plant engineering sector, especially the spare parts business.

Despite a slight decline in machinery exports to Kazakhstan in 2024, the German mechanical engineering industry remains confident

In 2024, machinery exports from Europe to the Southeast Asian region will still not be able to match the levels of the years before coronavirus and will even record further losses.

The EU's 16th sanctions package against Russia and Belarus has been somewhat lost in the excitement surrounding US President Trump. But there are new risks and details that VDMA members have to deal with.

The EU is aiming to conclude a free trade agreement with India this year. It would be an important step towards improving the competitive position of industry, also with regard to China.

The largest energy-related trade fair, SMART ENERGY WEEK, took place from February 19 to 21 at Tokyo Big Sight. Germany was strongly represented with three pavilions.

New orders in the machinery sector will increase in 2024 for the first time in two years, driven by semiconductors, electronics industries and others

The Japanese car manufacturers Honda and Nissan have broken off talks about a merger. However, the restructuring of the Japanese automotive industry is expected to continue in the future.

The Japanese electronics company Pioneer Corporation has opened a new R&D base in Wetzlar, Germany.

Nominal GDP in Japan in 2024 amounted to 609.3 trillion JPY (EUR 3.9 trillion) - an increase of 2.9% compared to the previous year and thus a record high.

President Trump is calling for reciprocal trade and tariffs – what impact might this have on machinery and equipment manufacturers and transatlantic trade?

With a liaison office for the ASEAN region, the VDMA aims to support European mechanical engineering in the region. Tiffany Ang has been representing the VDMA in the ASEAN region based in Singapore since January 6, 2025.

The USA and China remain top of the mechanical engineering export rankings in 2024. Overall, exports fell by a nominal 5 percent to just under 200 billion euros.

The partner country of Hannover Messe 2025 is Canada: The country is attractive for the European mechanical and plant engineering industry and offers significant growth potential.

The Chinese government has taken countermeasures in response to the US government's announcement that it will impose an additional 10 percent tariff on all imports from China.

The US tariffs for Canada and Mexico also affect the mechanical engineering industry - and its American customers. Quick negotiations are needed to get the tariffs off the table.

Machinery new orders revised upwards for the first time in 8 months, supported by investment in decarbonization and AI

Overview of the VDMA's foreign trade policy activities in 2024 - a review of the year

The USA is an important market for the German mechanical engineering industry. Despite protectionist tendencies, the dynamic remains positive; with the potential of headwinds. The VDMA calls for close EU-US relations and rejects tariffs.

At the end of 2024, Switzerland and the EU managed to redefine their relations. It is questionable whether the necessary referendum in Switzerland will accept the rules.

The VDMA Dubai meeting was characterized by a positive mood - driven by current business as well as business expectations. Nevertheless, there are challenges.

The EU Commission agrees to postpone the Deforestation Regulation by one year following massive criticism.

The EU Commission has published the Combined Nomenclature (commodity codes) for the year 2025. There are only a few changes for mechanical engineering.

After the very weak economy in 2024, hopes are pinned on markets picking up in 2025 / Politicians must set business-friendly framework conditions

VDMA supports companies in opening up international markets by participating in trade fairs, among other things. In addition to its own trade fair stands in Germany, it offers companies the opportunity to exhibit at group stand (German Pavilions).

The business expectations of German mechanical engineering companies in China for 2024 show little sign of improvement. The hoped-for growth will once again not be achieved.

The U.S. government has issued a notice of proposed rulemaking that would prohibit the importation of vehicles equipped with Chinese or Russian hardware or software.

The U.S. Department of Treasury issued the final rule restricting certain investments in the Chinese semiconductor and microelectronics, quantum computing and artificial intelligence sectors.

The order situation in the mechanical engineering sector remains weak, particularly in Germany. However, companies are also still waiting for new investment momentum in global business.

On October 28, the Russian central bank raised the key interest rate to 21 percent. At the same time, it indicated that the interest rate could soon rise even higher. The reasons are high inflation and the overheated economy.

This overview highlights the key differences and similarities between the trade policy of the two U.S. presidential candidates.

The August statistics on new orders for machinery showed that new orders from the "private sector (excluding ships and electricity)" fell by 1.9% to 858.1 billion yen (5.3 billion euros) compared to the previous month.

The EU Commission proposes postponement of the Deforestation Regulation by one year following massive criticism.

The tougher the dispute between the USA and China becomes in global trade, the greater the pressure on Europe. What will industries have to face if rules-based trade is pushed aside?

In this exclusive publication, we present Kamala Harris’s trade policy agenda and provide an assessment of the potential impact on machinery and equipment manufacturers.

The following summarizes the discussions with VDMA members' branches in Turkey and with Turkish mechanical engineering companies as well as the second meeting of VDMA members in Istanbul.

In December 2024, the EU bodies agree to postpone the start of implementation by 1 year.

On September 13, 2024, the Biden Administration released the final version of its four-year review of Section 301 tariffs, which includes sweeping tariff hikes on selected Chinese goods.

The deforestation regulation forces us to act.

India has established itself as one of the up-and-coming markets for the European mechanical and plant engineering industry.

India wants to become a major economic power. The government is promoting growth with numerous measures. But locally, the paths to new business can be tortuous.

The June statistics on new orders for machinery in Japan showed that new orders from the "private sector (excluding ships and electricity)" increased by 2.1% month-on-month to 876.1 billion yen (5.4 billion euros).

Donald Trump has promised to impose new tariffs on all European imports. This and other trade policy promises are set out in an exclusive publication for members.

Mechanical engineering recorded a nominal decline in exports of 4.8% in the first half of 2024. Weak demand from Europe and China in particular weighed on exports.

Japan's real GDP growth for the second quarter (April-June) was 0.8%, converted at an annual rate of 3.1%.

New opportunities for companies, investors, and individuals will emerge in Brazil and abroad as the H2 policy promotes economic development, environmental protection, energy security, and international cooperation.

Uzbekistan's economy will grow by at least 5 percent over the next few years. Development programs and reforms are ensuring progress.

China's mechanical engineering industry continues to catch up, products from the Far East are improving and are almost always cheaper. But China's industry is also benefiting from subsidies across the board. Results of a new VDMA study.

Chinese companies now have a global presence and dominate some global markets

Applicants from NRW must in future submit their application to the Visa Center in Frankfurt am Main

China is not only striving for technological supremacy locally, but also internationally.

Baden-Württemberg companies encounter a complex economic and political field of tension in China.

At the invitation of Baden-Württemberg's Minister of Economic Affairs, Dr. Nicole Hoffmeister-Kraut, a Baden-Württemberg delegation of company and association representatives as well as scientists traveled to Morocco for the first time in 40 years (!)

The deforestation regulation forces us to act.

Major effort required to implement the CO2 border adjustment mechanism

China's government is now called upon to prevent a trade war with the EU before the new tariffs come into force. European industry finally needs a level playing field.

The long-standing cooperation with the VDMA has been adapted, which continues to offer exclusive special conditions for members and a regional extension to Italy, Austria and Poland.

What's new in the area of export controls? What do you currently have to be prepared for in practice? The event addressed the most important developments.

Among other things, the event covered changes in the areas of ATLAS exports, carbon offset tax (CBAM) and customs clearance in third countries.

Russia is trying by all means to covertly procure sanctioned goods in the EU. This creates a risk of unintentionally becoming involved in sanctions violations. VDMA Foreign Trade provides tips on how to react to this.

Germany and Italy maintain close economic relations, especially in mechanical engineering. The new VDMA office in Bologna is intended to be a local point of contact.

China has developed rapidly and, as a result, undergone considerable change. This has an impact on the economic and political environment to which the machinery and plant engineering industry cannot close its eyes.

VDMA study shows need for catching up (or pent-up demand) for German financing offers

How are imports and exports from and to China developing? How can European machine builders maintain their market position in view of technological developments in China? Daniel Yoo, office manager VDMA-Shanghai, provides information.

Germany Trade and Invest (GTAI) provides a monthly overview of publications relevant to mechanical engineering on Africa exclusively for VDMA members.