Two-thirds of German engineering firms expect tariff hit, lobby finds

BERLIN, ‌Dec 9 (Reuters) - Two-thirds of German engineering companies expect a ‍revenue ‌knock due to U.S. tariffs, with almost half estimating such ⁠a revenue hit at ‌more than 10%, according to a survey by the VDMA sector lobby.

According to the survey of nearly 400 member companies, almost half (47%) ⁠reported a decline in orders from the United States since April.

"It's not ​just about the absolute level of the ‌tariffs, but also about the ⁠associated bureaucratic burden," said VDMA president Bertram Kawlath at the lobby's annual press conference on Tuesday.

"Only about a ​quarter of our companies believe they can meet the American requirements," he said in a statement, calling on German and EU leaders to make clear that tariffs are ​counterproductive.

However, tariffs ‍are only one ​in a long list of challenges facing the sector, said the lobby.

A lack of genuine reform and overbearing bureaucracy is stifling domestic growth, while geopolitical crises, increasing trade restrictions, global customer uncertainty and Chinese competition are hampering the sector's ⁠ability to recover.

Kawlath said better business conditions in Germany and Europe would be the best ​way to counter this competition.

On that basis, the VDMA confirmed its forecast for a real production decline of 5% this year, although new data offer ‌some hope for a slightly better outcome, and growth of 1% next year.

(Reporting by Miranda Murray; editing by Matthias Williams)