Simon Harris says 30pc tariff would stop trade from functioning between the EU and US and warns of job losses

Irish Independent

4 days ago

The EU and US had been engaged in negotiations ahead of a deadline last week, but US president Donald Trump announced he was pushing back the imposition of a higher rate of tariffs until August 1.
Mr Trump also said he would impose 30pc tariffs on the bloc if a deal is not reached, in a move that EU trade commissioner Maros Sefcovic said would make trade between the two regions almost 'impossible'.
If negotiations on a deal fail and the EU imposes countermeasures worth €72bn, this would hurt both the US and the EU, Mr Harris will tell ministers today.
Speaking on Newstalk's The Pat Kenny Show, the Tánaiste said the 30pc tariffs "would, in many ways, stop trade from functioning between Europe and the US".
'There is a very significant difference between baseline 10pc tariffs and an extraordinary level of tariffs of 30pc on the European Union," Mr Harris said.
'We've got to really pull together now as a country, and we've got to pull together as a European Union and work our way through this. I believe it's still possible to have a negotiated agreement, because the trade relationship between Ireland and the US - and the US and the EU - matters.
'It matters in both directions, but it is a deeply concerning development that when the European Union was engaging in good faith - and was very close to what we believed was a framework agreement - that this development has now happened over the course of the weekend," he said.
He said that Ireland and the European Union are facing a "moment of major economic challenge" if the 30pc tariffs on EU exports are imposed.
However, Mr Harris added: 'I think in his heart of hearts, [president Donald Trump] knows, as a businessman, that tariffs of that level would not just disrupt trade, but in many ways stop trade as we know it from functioning between Europe and the US."
Ministers will also be updated on plans to engage with the pharmaceutical industry later this week, a sector Mr Harris will say is an area of significant concern for Ireland.
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There is a real resolve to continue with those negotiations in good faith
Meanwhile, Agriculture Minister Martin Heydon, who is in Brussels for the EU Agri-Fish council, said the mood has been one of calm.
Mr Heydon said the EU believed the announcement over the weekend was a negotiating tactic.
'There is a real resolve to continue with those negotiations in good faith. In one way, nothing has changed. Because it is still about August 1,' he told the Irish Independent.
'It's not that long ago, 50pc was being threatened. Now 30pc is in a letter. We have to continue to negotiate in good faith,' he added.
Mr Heydon said while more time to negotiate is welcome, there is significant concern over the uncertainty it is causing businesses.
'Every business can deal with changes if they know what the future looks like, but the future keeps changing,' he said.
'We were glad there was an extension to August 1, that we avoided a cliff-edge date, but at some stage, we do need a final decision here. We do need clarity about the future for our companies, because there's been so much turmoil this year that's not good for supply chains.'
Mr Heydon said while talks will continue, it was important the US knew that the EU would have a firm response to high tariffs, which will come in the form of a list of retaliatory measures.
'In all negotiations, you try and avoid escalating them, but the other side has to know that at some point you do have options open to you,' he said.
'The European Union recognises its strength and recognised [its strength] on Brexit, and it will recognise it in its negotiations with the US.
'That's why the counter list comes up. There has to be that possibility of a firm response should the other tariffs come into play.'
Speaking yesterday, following a meeting with US ambassador to Ireland Ed Walsh, Simon Harris said the EU has to 'prepare for all scenarios'.
'The message I relayed to the US ambassador is a consistent one and a very straightforward one: we in Ireland, we in Europe, want a deal,' he said.
'We want a trade deal that is good for Ireland, good for Europe, good for the United States of America, and I believe there is a clear landing zone in relation to that.'
He continued: 'I believe there was a landing zone very nearly there last week, and it's regrettable that wasn't arrived at.'
However, he remains confident that a deal can happen in the days ahead.
The European Commission is due to publish an expanded list of counter- tariffs that would be implemented if an agreement is not reached.
If there isn't a deal Europe also has options at its disposal
Mr Harris said the 'optimal position' would be to get to a deal where 'we can rip up that list and never need to see it implemented'.
'A countermeasure list is an important step of saying to president Trump: 'Hang on, we want a deal here, we want a way forward, but if there isn't a deal Europe also has options at its disposal',' he added.
The Tánaiste said the Government will also analyse the list and engage with the commission over any 'areas of concern for Ireland' that arise.
Mr Harris said the pharma sector remains an area of significant concern.
'Europe must remain calm, must remain united – our strength is in being united, 460 million of us – and must of course prepare for all scenarios,' he said.
Earlier, European commissioner for democracy, justice, the rule of law and consumer protection, Michael McGrath said the bloc's response to 30pc tariffs would be 'firm, quick and robust'.