Tánaiste Simon Harris has said the introduction of the new US tariff on EU goods provides “some degree of certainty” to businesses.
Levies on more than 90 countries around the world came into effect overnight, with Ireland subject to the EU’s 15% rate.
Simon Harris, who is Minister for Foreign Affairs and Trade, said while tariffs are bad, he said on balance, “it’s better to have some degree of certainty in an agreement and certainly a lower rate of tariff than many parts of the world”.
“What this does provide is clarity and certainty for many parts of the Irish economy in relation to what the trading environment with the United States will now look like for the time ahead,” Mr Harris added.
Officials on both sides of the Atlantic are still working on the finer details of the framework agreement.
The Tánaiste said he was in contact with the EU Trade Commissioner Maroš Šefčovič, who he said is “expecting the joint statement between the United States and the EU shortly”.
“I’m certainly hoping that’s something we see this week,” he added.
“I think it’s quite peculiar, quite frankly, that that hasn’t yet arrived and been published, considering the tariffs are now in place, and I suppose that, in of itself is an indication that really, this is just a high-level framework agreement,” Mr Harris said.
He said there is still a lot of work to do and “so much to play for in terms of trying to exempt as many sectors as possible from tariffs”.
On sectoral carve-outs, Mr Harris said the Government “very much wants to see zero-for-zero when it comes to the spirits industry.
He said the expectation at this stage is that any exemptions for the drinks sector “won’t be included in the original list of carve-outs.”
“There will be space for engagement between the US and the European Union in relation to that, and I’ve highlighted to the European Commission how important that is to Ireland, and indeed to many drink suppliers right across our country, but also not just in Ireland,” he said.
He warned that securing a zero-for-zero rate for the spirits industry “may be something that will take a little bit of time.”
Mr Harris said he “certainly expects” the United States to live up to their side of the agreement.
“This has been a very difficult and arduous process. It’s caused huge uncertainty, huge stress, huge anxiety for many Irish businesses, for many European businesses.
“Now that we have a framework agreement, it’s very important that it’s honoured, not just in letter, but also in spirit, because there’s a very clear understanding from the European Union that there will now be space to work on trying to exempt more areas from tariffs in the time ahead, including the drinks industry,” Mr Harris added.
‘Task force at EU level’ on pharmaceuticals
Pharmaceuticals are also covered by the 15% deal agreed between the EU and US, but there is uncertainty about the future, after President Trump threatened to impose rates as high as 250% on the sector over the next 18 months.
The Tánaiste held talks earlier today with the Chief Executive of Pfizer, Albert Bourla, at Government Buildings.
Speaking following the meeting, Simon Harris said: “I think it’s fair to say at a broad level that the industry itself is concerned about tariffs, and in that sense, Ireland, the European Union and the pharma industry are aligned.”
Given the challenges facing the sector, the Tánaiste is to propose that the European Commission establishes a taskforce on pharmaceuticals.
“I think a task force at an EU level, which relevant member states and the industry could be involved in, working closely with the Commission, would be a prudent and sensible thing to do.”
“Pharma is something that affects many member states. We need to get those relevant member states plus industry together to work with the European Commission and to speak with one voice to the United States,” Mr Harris added.
