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Madrid Machine Tool Maker Sees 35% Output Hit by U.S. Tariffs

With a 60-year legacy in Madrid’s industrial heart, Técnica del Decoletaje has become a trusted name in precision machine tools. Their components travel halfway around the world, finding their way into cars sold in the United States.

But as U.S. tariffs on EU goods rise, the effects have rippled through the automotive supply chain. Mario Lobato, managing director at Técnica del Decoletaje, told CGTN that about 35% of the company’s products are now subject to higher duties, squeezing profit margins and slowing order flows.

Rafael Rosa, a longtime technician on the factory floor, sums up the mood: "Tariffs have not brought anything positive. Production materials are more expensive, and both multinationals and small- and medium-scale businesses have been deeply affected."

For many Spanish SMEs that rely on overseas markets, these trade barriers signal a shift in strategy. As costs climb, companies like Técnica del Decoletaje must weigh the historic strength of their expertise against the uncertainty of new tariffs.

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