"Hidden" duties blocked the export of a German engineering giant to the United States

German company Krone, one of Europe's largest agricultural machinery manufacturers, has suspended exports of large-sized equipment to the United States due to new duties. About writes The Guardian.

After the administration Donald Trump expanded 50% duty on steel imports and aluminum, additional fees were introduced for 407 products – from hair dryers to combine harvesters.

Starting August 18, companies like Krone will have to provide customs officials with detailed information on the origin, weight, and cost of each steel part.

"You need to transfer documents from supplier to supplier. It's almost impossible," said Oliver Richtberg, a representative of the German machine builders' association VDMA, calling agreement between the EU and the US "not worth the paper it's written on".

"Von der Leyen the US trade policy speaks of stability, but this is not the case for our industry. Some companies have simply stopped exporting to the US," he added.

Krone CEO Bernard Krone called the new duties "a big shock."

"We were very concerned about this list. No one could say whether the duty depended on the weight, origin or price of the steel," he explained.

In August, the company extended the vacation for workers and temporarily halted production on some lines.

Despite consulting with lawyers, Krone is still not sure what documents the US needs. Therefore, instead of expensive harvesters (worth up to $800,000), the company will send a "test container" with smaller machines.

"We will know in four weeks if everything is in order with the documents. It's very nerve-wracking," he said.

"Many American clients are surprised. They thought that foreign companies paid the duty, but now they realize that it is the customers who pay. If prices go up, US citizens at Walmart or Target will pay more," Krone concluded.

• on August 21, the US and the EU finalized a framework trade agreement. The document provides for the US to impose a fixed 15% tariff on European goods, including cars, pharmaceuticals, semiconductors, and timber.
• In October, the US administration sent the EU a new proposal for "reciprocal, fair and balanced" trade. Brussels considers the new the US proposals are maximalist.