BERLIN, Aug 29 (Reuters) - Germany's VDMA machinery and

equipment manufacturers lobby on Friday called the EU's planned

tariff exemption for certain products from the United States "a

direct slap in the face" and said the EU Commission needed to

"urgently renegotiate".

The European Commission proposed on Thursday removing duties

on imported U.S. industrial goods in return for reduced U.S.

tariffs on European cars.

"Duty-free access for U.S. products while simultaneously

extending punitive tariffs to European machinery - that would

not only be unbalanced, but also a direct slap in the face for

one of the pillars of European industry," said the VDMA.

The lobby, which represents some 3,600 German and European

firms, warned that there would be serious consequences to such a

move, including job losses and enormous competitive

disadvantage.

"The EU Commission must urgently renegotiate. Mechanical

engineering products must be clearly and permanently exempted

from sectoral tariffs," said the VDMA.