Speaking at a press event in preparation for Agritechnica, Dr. Tobias Ehrhard, managing director of the VDMA Agricultural Machinery Association, noted that European ag equipment manufacturers — much like their North American counterparts — are operating in a difficult market environment. 

“Although order intake rose noticeably in numerous product segments in the first half of 2025, the sales situation remains unsatisfactory,” emphasizes Ehrhard. The industry-wide business climate index, which is based on a monthly survey of top managers in European industry, paints a similar picture. “An upturn has been expected for some time, but it is not really materializing at the moment,” says Ehrhard, explaining the continuing stagnation in the industry.

In view of aging machine fleets, he says ag machinery manufacturers expect demand for modern technology to rise again in the medium term. “We are confident that the agricultural machinery markets will normalize sooner or later,” emphasizes Ehrhard, saying that as soon as the economic engine really gets going again, a solid upturn is likely. 

European manufacturers are feeling the pain of U.S. imposed tariffs. 

“While the increased tariff rate in mechanical engineering affects an average of 30% of EU export volume, in agricultural machinery it is 70% on average,” explains Dr. Ehrhard. The VDMA's position on trade policy is clear: “We must move away from protectionism and toward open markets as quickly as possible. Where multilateral free trade agreements are not feasible, bilateral agreements must be concluded, as in the case of Mercosur,” summarizes the industry expert.

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