Agreement Under Contention

In a blow to Joachim Strobel, the head of the "Earthmoving" and "Material Handling" divisions at machinery manufacturer Liebherr, the trade agreement between the EU Commission and the US has failed to deliver the expected benefits. Strobel, who primarily exports Liebherr's products—excavators, bulldozers, and wheel loaders—to the US, has been left grappling with uncertainty and temporary difficulties.

These products are essential for operations at ports and construction sites across the US, making Strobel's customers heavily reliant on his exports. However, the lack of clarity and planning security promised by EU Commission President Ursula von der Leyen has led to a temporary halt in exports to the US.

Strobel had initially felt hopeful after the handshake between von der Leyen and US President Donald Trump in Scotland. He believed that the agreement would bring urgently needed clarity and planning security. Yet, the reality has been far from promising. The agreement has resulted in increased uncertainty for Strobel and other EU companies.

The current status of trade agreements between the EU and the US includes a reciprocal tariff rate of 15% on almost all goods from the EU. This framework agreement, however, is not legally binding and still requires ratification processes. New US tariffs, scheduled to commence August 1, 2025, impose a 30% flat rate on EU imports, despite ongoing negotiations. The EU has suspended its planned retaliatory tariffs initially.

Existing trade agreements and quota systems with the EU have been terminated as of March 12, 2025, affecting sectors including steel, aluminum, and automotive industries, which are relevant for companies like Strobel exporting equipment. The lack of a binding agreement and the imposition of new tariffs have made it challenging for Strobel to plan for the future and ensure the continued success of his business.

Despite these challenges, Strobel remains optimistic about finding solutions and navigating the uncertain waters of international trade. His resilience and determination serve as a testament to the spirit of innovation and perseverance that lies at the heart of the manufacturing industry.