Tariff ‘uncertainty’ for NI firm with goods on way to US

The boss of a manufacturing company in Co Tyrone that has 25 high-value machines already en route to the United States has said he is waiting to see how the new tariffs are applied when they arrive and is anticipating “huge levels of chaos” around US ports.

The industrial screening machines made by Edge Innovate in Dungannon cost hundreds of thousands of pounds each.

They are used in the recycling industry to separate waste streams.

The firm has 25 of them on ships heading for the States at the moment.

When they left Liverpool docks President Donald Trump’s tariff regime did not apply.

The base 10% tariff kicked in at midnight and will now be levied when they arrive in US ports.

Managing director of Edge Innovate Darragh Cullen said: “Well, it’s complete uncertainty. We have no idea what’s going to happen when they get there.

“Obviously, tariffs are going to have to be paid when, when do they have to be paid and when will the machines get released?

“So, I would anticipate there’s going to be huge levels of chaos around ports in America until these uncertainties are resolved.”

The US market is 40% of the firm’s turnover. The 10% tariff levied on all UK exports to the United States will apply to their products.

Industrial machinery is one of Northern Ireland’s biggest exports to the US.

There are a number of manufacturers based around the mid-Ulster area.

Mr Cullen said the tariff would increase the cost of his machines in the US market and he is “nervous” about how it would affect sales there.

“There’s serious levels of uncertainty. No one knows what’s going to happen.

“It’s a bit like Brexit, it’s a bit like Covid. It’s just the latest in a number of totally uncertain issues that are going on in the world economy,” he said.

Edge Innovate has other headaches around the Trump tariffs.

Some of the components, in what are complex machines, come from the EU.

Mr Cullen said he does not know yet whether that will affect the tariff rate he has to pay under so-called “rules of origin” arrangements.

EU exports to the US face a 20% levy.

A third concern is whether his company will be hit by any retaliatory tariffs the EU may levy on the US.

Under post-Brexit trading arrangements Northern Ireland is subject to EU rules on goods.

If the EU applies retaliatory tariffs, Northern Ireland must apply them too.

Edge Innovate imports engines from the US to put into their machinery.

Any EU countermeasures could add to the firms manufacturing costs.

Mr Cullen said the 10% export tariff will give his company a competitive advantage in the US market over EU, Chinese and Indian firms who supply the same machines.

However, his products will now be more expensive than those supplied by his US rivals.

“There are no winners in this situation at all. Nobody wants to see the increase in prices,” he added.