Minister hopeful of last-gasp deal with US to avoid Trump's 50pc tariffs

Irish Independent

10 hours ago

EU negotiators are in a race against the clock to secure an agreement with the US, which is threatening to impose 50pc tariffs. Next month's deadline looms large over Irish exporters, with the country set to be disproportionately hit should a trade war with Europe's largest trading partner ensue.
Mr Burke says he understands the challenges Irish businesses face should no deal be agreed upon, but hopes the talks will bear fruit.
Speaking during an Irish trade mission to Japan, he said that Maros Sefcovic, the EU's chief negotiator with the US, was trying to 'frame a landing zone' deal with Washington before time runs out.
'I do believe there are parameters for a deal,' he said. 'I was there for over a week in the US, where I met a lot of business leaders as well as some politicians. Ireland is very invested in its relationship with the US.'
Mr Burke noted that Tánaiste Simon Harris had recently held a 'productive' phone call with US trade representative Jamieson Greer. He believed there was a willingness to work together and 'get a deal'.
'The critical thing is we need to ensure that the EU and US economy, which is the most integrated trading relationship on the globe, is protected,' he said.
However, the minister believes some sectors will face tariffs, even if a 'landing zone' deal is agreed. The trade deal between the UK and US, which still includes a 10pc levy on most British goods, brought with it concerns.
'Critically, it sets the framework for other negotiations,' he said. 'But what we have done and the feedback we have is that we are trying to ensure in the first instance that we get as close to zero in as many sectors as possible.'
Mr Burke said resolving non-tariff barriers to trade, a key frustration for the Trump administration, would also help.
Peter Burke said Irish businesses were looking to diversify into new markets
Washington has openly criticised many of these perceived barriers, including Ireland's move to introduce new health warning labels on alcohol products. Mr Burke recently asked Health Minister Jennifer Carroll MacNeill to consider pausing the introduction amid ongoing trade challenges.
ADVERTISEMENT
'If we can make progress in that area [non-tariff barriers], I think we have a chance of getting agreement in other areas,' he said.
​Mr Burke said Irish businesses were looking to diversify into new markets, including Japan. Alongside Enterprise Ireland, he spent part of last week promoting Ireland's strengths in healthcare, financial services and sustainability to potential Japanese clients.
Despite transatlantic trade tensions, Mr Burke said new investment was still pouring into Ireland. The IDA will be publishing a strong set of half-year results in the coming weeks, he said, which would be 'surprising for some'.
Despite Mr Burke's optimism, there is increasing anxiety among European leaders about securing a positive trade deal in time.
Recent reports suggest that European officials and diplomats are now resigned to the idea that the Trump administration doesn't intend to remove its 10pc baseline tariffs on EU goods.
Speaking in Brussels, Taoiseach Micheál Martin said there would be no winners if the tariff dispute were to continue.
​'Every effort has to be made to get a landing zone that we can live with. It's not ideal. Europe doesn't want tariffs, but we have to deal with the situation that is before us,' he said.
EU leaders met in Brussels last week to discuss the US trade deal and debate how much they were willing to sacrifice to win over the US president.
The Wall Street Journal reported that the EU was considering lowering tariffs on a range of US imports in a bid to clinch a 'speedy trade deal'.
It stated that Germany and ­Italy were leading a group of countries pushing for a quick preliminary agreement that could be updated later in more detailed follow-up negotiations.
The report added that EU leaders were considering additional concessions, including lowering non-tariff barriers, buying more American products and offering to cooperate with the US on its economic concerns regarding China.
Europe's approach to the talks in Washington has also come in for sharp criticism.
Last week, German chancellor Friedrich Merz scolded the EU's negotiation process, describing it as 'far too complicated'.
Mr Merz said the bloc should focus on exemptions from the base tariffs for selected products such as cars, chemicals, machinery, steel and — crucially for Ireland — pharmaceuticals.
European Commission president Ursula von der Leyen said the US had shared a new document for further negotiations, which was now being assessed. 'We are ready for a deal,' she said.
Carol Lynch, partner at BDO Ireland and head of its customs and trade team, said companies should prepare for the July 9 deadline and not assume it will be delayed.
Ms Lynch added there was a feeling among Irish exporters that the current 10pc tariff was here to stay, with companies planning accordingly.