Where does the EU-US tariff deal leave Ireland?
The domestic political response to the announcement of the deal that would allow the
US
impose a
15 per cent tariff
on exports from the
EU
was markedly glum on both sides of the house. The Government was unable to muster anything more than a subdued acknowledgment it would 'bring clarity and predictability'.
Coalition leaders have been saying for many months that tariffs are not good for anyone, so the confirmation that EU Commission president Ursula von der Leyen and US president
Donald Trump
had agreed a 15 per cent level was hardly something to be welcomed.
'We will now study the details of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here,' Taoiseach Micheál Martin said in his initial reaction.
READ MORE
Minister for Enterprise Peter Burke, speaking on RTÉ's Morning Ireland, did not specifically disagree with the earlier assessment of Ibec director general Danny McCoy that it was a capitulation.
He said the EU was four days away from 30 per cent tariffs and the possibility of a prolonged trade war, which he warned would have been far more significant. That said, he did not shy away from the challenges the tariff would present for the Irish economy, not least the State's substantial exports to the US.
On Monday, politicians on both sides of the House were still looking for clarity on the finer details of the deal. On the face of it, the Irish whiskey industry will find itself facing a higher tariff than its Scottish competitors (the UK has a 10 per cent tariff) though it might possibly benefit from carveouts announced for aircraft, chemicals and agri-food.
The other key question for Ireland revolves around pharmaceuticals and if that sector (which is the main component of Irish exports to the US) will be subject to tariffs, or will face additional ones. Despite Mr Trump saying negotiations on pharmaceuticals would be separate, Ms von der Leyen indicated it was part of the agreement.
Sinn Féin's enterprise spokeswoman, Rose Conway-Walsh, said the deal was 'nothing to be celebrated'.
She also said she was very concerned about the lack of differential between North and South, and its repercussions for both economies and for supply chains.
'It is very obvious that there is a need for a package for business and for exporters,' she said. 'We have to protect jobs. We cannot have people losing their jobs.'
The Labour spokesman on enterprise, George Lawlor, said a revised summer economic statement was needed as the one published this month was predicated on tariff levels of 10 per cent.
'We face uncertainty as to what's going to happen in the pharma sector. We also face uncertainty as to what's going to happen with the drinks industry.
'There's no doubt it's going to have serious implications. I think there was a prediction of some 45,000 jobs that would have a cloud hanging over them with a 10 per cent tariff. So with a 15 per cent tariff, that can only be a bad deal for Ireland.'
Opposition figures pointed to what they said was the inherent weakness of the EU as a political bloc. Mr Lawlor said the US emerging with zero tariffs plus side deals seemed 'ludicrous' to him.
'The notion that we come away from this in a much worse position than when we went in is something that has to be seriously examined.'
Edgar Morgenroth, professor of economics at DCU, said the deal did not give certainty. He referred to a deal Mr Trump did with Canada during his first term that he subsequently unpicked.
'Nothing is certain with this guy, except if you give him something, he will come back for more. So the whole strategy of going and negotiating was just stupid,' he said.
He also criticised the lack of political cohesion within the EU. 'In Germany they worry about the German car makers. In Ireland, we had the whiskey makers.
'Every country sees itself like a country, and never sees the power of the bloc, and it means we are an easy target because you can kind of divide and conquer,' Prof Morgenroth said.
In a worse-case scenario, if US multinationals reduced their presence in Ireland (as a result of Mr Trump's policies), and if there was also a change in the treatment of intellectual property (both big drivers of corporation tax), this would undoubtedly lead to a substantial 'fiscal shock' for Ireland, he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTÉ News
2 hours ago
- RTÉ News
Trump hikes India levy over Russian oil as tariff deadline looms
US President Donald Mr Trump has ordered steeper tariffs on Indian goods over the Asian country's continued purchase of Russian oil, opening a new front in his trade wars hours before another wave of duties takes effect. The additional 25% tariff on Indian goods, coming into place in three weeks, stacks atop a separate 25% duty entering into force, taking the level to 50% for many products. Mr Trump's order also threatens penalties on other countries who "directly or indirectly" import Russian oil, a key revenue source for Russia's war in Ukraine. Exemptions remain however for goods targeted under sector-specific duties such as steel and aluminum, and categories that could be hit later, like pharmaceuticals and semiconductors. Smartphones are in this list of exempted products for now, shielding Apple from a major hit as the US tech titan shifts production from China to India. India's foreign ministry condemned Mr Trump's announcement, calling the move "unfair, unjustified and unreasonable." The ministry previously said India began importing oil from Russia as traditional supplies were diverted to Europe over the war - noting that Washington had "actively encouraged" such imports to strengthen "global energy market stability." However, Mr Trump recently raised pressure on India over the oil purchases, threatening new tariffs as part of a campaign to force Moscow into ending its devastating invasion of Ukraine. India's national security adviser was in Russia, media ii reported, coinciding with US envoy Steve Witkoff's visit. The 25% additional tariff is lower than the 100% Mr Trump floated last month when he told Russia to end the war in Ukraine within 50 days or face massive new economic sanctions. The Republican said at the time that these would be "secondary tariffs" targeting Russia's remaining trade partners, seeking to impede Moscow's ability to survive already sweeping Western sanctions. Tariff turmoil Mr Trump has separately taken aim at Brazil over the trial of his right-wing ally, former president Jair Bolsonaro - who is accused of planning a coup. US tariffs on various Brazilian goods surged from 10% to 50%, although broad exemptions including for orange juice and civil aircraft are expected to soften the blow. A new wave of tariffs impacting dozens of other economies, from the European Union to Taiwan, is set to kick in later today. These updated "reciprocal" tariffs, meant to address trade practices Washington deems unfair, go up to 41% for Syria US trading partners face varying increases from a current 10% level, starting at 15% for economies like the EU, Japan and South Korea. Countries not targeted by these "reciprocal" tariff hikes continue facing a 10% levy Mr Trump imposed in April. Mr Trump's plans have sparked a rush to avert steeper duties, with Switzerland's President Karin Keller-Sutter hurrying to the US ahead of the deadline. It was unclear if she would meet Mr Trump or any top economic officials. While Switzerland's key pharmaceutical sector has been spared from the incoming 39% duty for now, Mr Trump has warned that future pharma tariffs could eventually rise to 250%. Many of Mr Trump's sweeping tariffs also face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the Supreme Court. Tokyo's tariffs envoy Ryosei Akazawa was also in Washington, pressing for clarity on when promised cuts to tariffs on Japan's auto imports from 25% to 15% would take effect. A US official said meanwhile that, unlike for the European Union, tariffs on other Japanese imports would not be capped at 15% but that these "reciprocal" levies would be added to existing ones. Japan averted threatened extra tariffs of 25% in a deal struck in July, but the two sides appear at odds over key details, including over Japanese investments of $550 billion into the United States. "It's our money to invest as we like."
Irish Times
4 hours ago
- Irish Times
Letters to the Editor, August 7th: On the wisdom of Metrolink, abortion data, and the red fox
Sir, – Dermot Desmond's claim that AI will render MetroLink obsolete ignores the reality that traffic congestion already costs the Dublin economy over €336 million annually, rising to €1.5 billion per year by 2040 (' AI will make Dublin's MetroLink obsolete ,' says Dermot Desmond, August 5th). Congestion isn't typically caused by parked cars, but by vehicles using roads at the same time. Self-driving cars won't solve that problem as they will still take up the same road space as existing vehicles. Meanwhile, Ryanair's Michael O'Leary's fanciful proposal that we should cancel MetroLink in favour of building a new motorway in the Irish Sea would also surely find itself to be expensive and highly congested on whatever day in 2045 or 2050 it would open. What does work is the high-capacity public transport solutions in use all across the world, including in Ireland, such as electrified suburban rail (Dart, Luas, MetroLink), combined with segregated cycling lanes and walking tracks and greenways. READ MORE These are systems that move thousands efficiently, reduce emissions, and make urban spaces more liveable. We have the plans now. Let's get on with implementing them without further delay. – Yours, etc, ROSS Ó CURRÁIN, Drumcondra, Dublin 9. Sir, – What is it about Irish billionaires/multi-millionaires and MetroLink, and with our eagerness to listen to their 'pearls of wisdom'? First Michael O'Leary's rant and now Dermot Desmond, with his outlandish claims that self-driving cars will make public transport redundant. Setting aside the serious safety concerns with autonomous vehicles, especially in urban areas, we would do well to learn from the experience of Uber and other rideshare platforms which made similar claims about congestion reduction. Study after study has shown that they in fact increased congestion in cities where they operated and had almost no impact on car ownership. Any privately operated AI-driven autonomous vehicle service will have the same commercial pressures to increase car dependency. I do, however, share Mr Desmond's optimism about the possibility of significant reductions in car ownership. This will be achieved, not through futuristic technology, but by investing in our public transport and active travel infrastructure which will make cars redundant in our cities. – Yours, etc, CIARÁN FERRIE, Rathmines, Dublin 6. Sir, – I must keep an eye out for Dermot Desmond the next time I'm waiting for the Luas. – Yours, etc, HELEN PEAKIN, Terenure, Dublin 6W. Sir, – Why does The Irish Times continue to publish the opinions of billionaires about public transport projects? When was the last time Denis Desmond took a train? He tells us that self-driving cars will mean there are fewer cars on the road, and thus no need for the Metro. Even a brief moment of introspection will show this to be the opposite of the case. Self-driving cars will likely spend more time on the road as they cruise around looking to pick up passengers, just as taxis do today. Would car manufacturers really be investing in AI if they thought it would result in fewer car sales? AI will likely make Dublin's traffic much worse, not better. It will be the same the world over. China, no laggard on AI, is massively expanding its public transport system in the coming years. Dublin absolutely does need a metro. – Yours, etc, Dr MARK SUGRUE, Donaghmede, Dublin 13. Sir, – I have just read the report about Dermot Desmond and the proposed metro system. The newspaper recently has seen an onslaught of articles against MetroLink and improvements to the public realm, led by contributors such as Frank McDonald and Michael McDowell. Is there any space to be had for progressives in the newspaper? The arguments currently being used against the metro we have seen before. The Dart would cost too much, nobody would use the Luas. Nobody now would seriously suggest we dismantle either rail system. The same will be true of the MetroLink when it too is built. It is never going to be cheaper to build the metro than now, it is never more needed than it is now. Let's stop the propagation of fantasy arguments and promote a positive vision of MetroLink. – Yours, etc, ADAM LADD, Drimnagh, Dublin 12. Sir, – It is reasonable to expect that southside residents wanting to use the metro to go to the airport will have luggage with them. But how are they to get to the St Stephen's Green station with that luggage? Luas and buses are not able to accommodate luggage, and it is unlikely that a sufficient park and ride could be offered in that area. The metro would therefore be useless for airport access for a huge number of potential travellers. This problem needs a solution before we spend any of the billions proposed. We don't need a white elephant. – Yours, etc, DAVID O'HIGGINS Stillorgan, Co Dublin. Slim chance Sir, – I read with interest how the availability of GLP-1 medications has rung the death knell for the body positivity movement (' Body positivity fell from favour as soon as Ozempic brought thinness back ,' August 4th). Any chance someone will invent an Ozempic to help slim down the size of and curtail the appetite for SUVs on our roads? – Yours, etc, ULTAN Ó BROIN, Blackrock, Co Dublin. Abortion data collection Sir, – It was recently reported that the HSE will be rolling out a pilot scheme in some hospitals to collect more data and information on abortion in Ireland (' More detailed data on abortions to be collected from Irish hospitals ,' August 5th). This is welcome, as Irish data collection for abortion has proven inaccurate and unsatisfactory, in contrast with other jurisdictions. For example, the total number of abortion notifications received by the Department of Health for 2021 was just 4,577. But according to a supplementary memo, the department acknowledged this figure fails to tally with the total number of abortions actually performed. Instead, it estimated, based on the total number of reimbursements for abortion paid to GPs in 2021, that the figure is likely closer to 6,700. In addition to inadequately completed notifications returns, the limited data sought in the forms leaves much to be desired as it only provides the total number of abortions performed by month and county. This excluded collecting data such as age, gravidity, and gestational age. Knowing this information is important to inform the public about the scale and nature of abortion in Ireland, but also to allow researchers and policymakers to identify trends. When the Health (Regulation of Termination of Pregnancy) Act 2018 was being drafted in autumn 2018 after the referendum in the same year, an amendment to the legislation was tabled which would have ensured that such comprehensive data was included in the notifications form. The amendment sought the same data as that collected in the English HSA4 form. But the government of the day rejected this motion outright, instead opting for limited data collection. Had that amendment been taken on board at the time, we would have a far clearer picture of the trends and realities of abortion in Ireland. While it is welcome that the HSE has recognised the importance of comprehensive and accurate data collection, this should have been a key component of abortion policy since the law became operational seven years ago. – Yours, etc, EILÍS MULROY, Pro Life Campaign Dublin 2. Sunny disposition Sir, – Concerning falling birth rates, Breda O'Brien contrasts five European countries where the decline is not so steep (Denmark, France, Germany, Sweden and Britain) with four which are rock bottom (Greece, Italy, Portugal and Spain) ('Let's stop glorifying motherhood and glorify parenthood instead,' August 2nd). Could sunshine have something to do with it? – Yours, etc, SADHBH Ní SEACHNASAIGH, Galway. Gaza and showing compassion Sir, – Fintan O'Toole's latest article on events in Gaza is a lesson in what real journalism can and should achieve. It sits as a reminder to others that there is no such thing as 'silly season' when it comes to informing and educating the public. The homeless remain homeless, the poor remain poor, and the victims of war continue to suffer no matter the season. O'Toole's compassion and erudition is a beacon in a sea of mediocrity and long may he continue in his quest. – Yours, etc, PAUL GRAY, Drumcondra, Dublin 9. Sir, – Una Mullally is right: the passing of the Occupied Territories Bill by the Irish Government could well be a catalyst for a global boycott, divestment, and sanctioning of Israel (' Ireland can be a beacon with the Occupied Territories Bill, ' August 4th). As Israeli prime minister Binyamin Netanyahu considers a full takeover of the Gaza Strip and the starvation and killing continues, this legislation should be expedited as a matter of urgency – and it should include services (as recommended by the Oireachtas Joint Committee on Foreign Affairs and Trade). In this context, the Dáil and Seanad should be recalled during the summer recess for an emergency session to pass this legislation – which could coincide with a national day of protest, as suggested by a previous letter writer. Importantly, a national day of protest combined with legislative action in Leinster House on the same day should be accompanied by politicians and the public alike calling on Hamas to release all the hostages, to disarm, and to disband. The time for decisive moral leadership and action is now. – Yours, etc, CHRIS FITZPATRICK, Terenure, Dublin 6. Sir, – I agree with Diarmuid Ó Cinnéide (Letters, August 5th) that the publication of pictures of starving and emaciated children is both gut-churning and traumatising. However, these distressing pictures have dramatically served to increase the public and political outcry as to the urgent need for an end to these horrific conflicts. – Yours, etc. JOSEPH TUMMON, Circular Road, Galway . Looking busy Sir, – Greg Maxwell's letter (August 2nd) on the matter of 'The look of looking busy' and the experience of the late Sam McAughtry reminds me of my own experience many years ago, coincidently again in the Department of Agriculture but here in Dublin. I was assigned early in my civil service career to the minister's office and during the day, made a point of dutifully clearing my desk and ensuring that all files and correspondence were dealt with . On one of these days, the deputy secretary general of the department stopped, looked at my pristine desk, and his advice was: 'Never sit at an empty desk, always have a significant number of files at hand, at least two open, and avoid looking up or interrupting your close scrutiny of all these documents.' I took his advice but I doubt if my career blossomed to the same extent as Sam's. – Yours, etc, MARTIN McDONALD, Terenure, Dublin 12. Speeding motorists Sir, – Travelling to Donegal from Dublin and back again over the weekend I was amazed at the complete disregard by a very large number of my fellow motorists for the speed limit on our roads. Each time I went over the speed limit by two or three kilometres my car emitted a reminder to inform me of my transgression. As I slowed down to the appropriate kilometres per hour I was on each occasion overtaken by several cars travelling at a much greater speed. – Yours, etc, MARY DALY, Rathfarnham, Dublin. Protecting the red fox Sir, – I commend to all, John Fitzgerald's excellent letter 'Protecting the fox', August 5th. Ireland, due to its geography, has a dearth of natural fauna and is fortunate to have foxes, a beautiful and intelligent animal, which has sadly been persecuted in the past. Urban dwellers are now favoured by the presence of these animals, giving children the opportunity to observe nature close up. Foxes also do much to keep rats under control and contrary to ill-informed prejudice do not spread of disease. We should admire and protect our fine red foxes. – Yours, etc, Dr D O'BRIEN, Rathfarnham, Dublin 14. Sir, – While I share John Fitzgerald's opposition to hunting foxes with dogs I do not agree with his assertion that: 'The hound is not a natural enemy of the fox. Both are dogs. Hence, the need to train novice hounds to hunt foxes from an early age.' I have owned dogs of various shapes and sizes for many years and found that they, unfortunately, required no training at all to chase after foxes; in fact it would have required some intensive training to stop them from doing so. While foxes and domestic dogs are from the same family of mammals, their evolutionary paths diverged millions of years ago. – Yours, etc, KATHERINE QUIRKE, Dún Laoghaire, Co Dublin. Supermarkets and food recalls Sir, – It appears that the supermarkets are keeping a low profile in relation to the listeria infection. While I do not have a loyalty card, I, nonetheless handed back my suspect chicken jalfrezi to the customer services desk of my local Tesco and was refunded the ¤4.25 in cash without question. – Yours, etc, TONY CORCORAN, Dublin 14. Front gardens Sir, – Louisa Moss draws attention to the environmental dangers involved in building small homes in back gardens (Letters, August 6th). In recent years many front gardens in suburban areas have been replaced by cobble lock and tarmac, neither of which is permeable, thus leading to direct run-off and local flooding. If houses are built in back gardens there will undoubtedly be an increased demand for car parking in front gardens with the consequent demise of the already threatened hedges, shrubs and small trees which contribute so much to urban biodiversity and help prevent flooded drains. – Yours, etc, LOUIS O'FLAHERTY, Dublin 9.
Irish Times
5 hours ago
- Irish Times
Donald Trump says he plans to put a 100% tariff on computer chips
US president Donald Trump has said he will impose a 100 per cent tariff on computer chips, likely raising the cost of electronics, cars and household appliances. His announcement came as Apple chief executive Tim Cook joined him at the White House to announce a commitment by the tech company to increase its investment in US manufacturing by an additional $100 billion (€85.6 billion) over the next four years. Mr Trump said companies that make computer chips in the US would be spared the import tax. 'We'll be putting a tariff on of approximately 100 per cent on chips and semiconductors,' Mr Trump said in the Oval Office while meeting Mr Cook. READ MORE 'But if you're building in the United States of America, there's no charge.' During the Covid-19 pandemic, a shortage of computer chips increased the price of cars and contributed to an uptick in overall inflation. Referencing Apple's investment plan, Mr Trump told the press conference: 'This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America. 'Today's announcement is one of the largest commitments in what has become among the greatest investment booms in our nation's history.' As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the US as part of an initiative called the American Manufacturing Programme, but it is not a full commitment to build its popular iPhone device domestically. In a statement announcing the investment, Mr Cook said: 'This includes new and expanded work with 10 companies across America. They produce components – semiconductor chips included – that are used in Apple products sold all over the world, and we're grateful to the president for his support.' The new manufacturing partners include Corning, Coherent, Applied Materials, Texas Instruments and Broadcom among others. Apple had previously said it intended to invest $500 billion domestically, a figure it will now increase to $600 billion. Mr Trump in recent months has criticised the tech company and Mr Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China . While in Qatar earlier this year, Mr Trump said there was 'a little problem' with the Cupertino, California, company and recalled a conversation with Mr Cook in which he said he told the businessman: 'I don't want you building in India'. India has incurred Mr Trump's wrath, as the president signed an order on Wednesday to put an additional 25 per cent tariff on the world's most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50 per cent. Apple's new pledge comes just a few weeks after it forged a $500 million deal with MP Materials, which runs the only rare earths producer in the country. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate. Speaking on a recent investors call, Mr Cook emphasised that 'there's a load of different things done in the United States'. As examples, he cited some of the iPhone components made in the US such as the device's glass display and module for identifying people's faces and then indicated the company was gearing to expand its productions of other components in its home country. 'We're doing more in this country, and that's on top of having roughly 19 billion chips coming out of the US now, and we will do more,' Mr Cook told analysts last week, without elaborating. News of Apple's latest investment in the US caused the company's stock price to surge by nearly 6 per cent in Wednesday's midday trading. That gains reflect investors' relief that Mr Cook 'is extending an olive branch' to the Trump administration, said Nancy Tengler, chief executive of money manager Laffer Tengler Investments, which owns Apple stock. Despite Wednesday's upturn, Apple's shares are still down by 14 per cent this year, a reversal of fortune that has also been driven by the company's botched start in the pivotal field of artificial intelligence. – Associated Press
