EU trade commissioner Maros Sefcovic and US trade representative Jamieson Greer are meeting in Paris today to accelerate the pace of trade talks between the EU and Washington.
Their discussion – which is being held on the sidelines of the OECD ministerial meeting – comes after US President Donald Trump said he would hit the European Union with 50% tariffs.
President Trump has delayed these proposed tariffs until 9 July to allow the EU and Washington produce a deal.
Today, the US doubled tariffs on steel and aluminium imports from 25% to 50%.
Its the second hike on the metals, which are key components in everything from cars to canned food, since March.
The move also comes on the same day as President Trump expects trading partners to deliver their “best offer” in bids to avoid punishing import tax rates on other goods from taking effect in early July.
“I think the EU needs to strike a fine balance in all of this in terms of getting a good deal for the the EU, which will take time, that would be a good deal for Ireland then as well,” said Kate English, Chief Economist with Deloitte Ireland.
Ms English said the EU also needs to reassure the US administration that progress is being made.
“What we see here what we see here is that the Irish economy, the EU economy, the global economy, is finally balanced at the moment,” she said.
“We have tailwinds that are pushing us along; that strong domestic employment; inflation falling; the good possibility of an interest rate cut tomorrow, which would be good news for borrowers such as mortgage holders.”
However, she highlighted that the OECD outlook this week indicates a more challenging time ahead for businesses.
The OECD has slashed its annual global growth forecast, warning that US President Donald Trump’s tariffs blitz will stifle the world economy – hitting the US especially hard.
“There’s also strong headwinds and that was very clear and even some updated economic forecasts released yesterday, it’s really, really difficult for businesses and economies to plan in such an uncertain policy environment,” said Ms English.
