Ireland avoids ‘catastrophic' US tariffs as pharma duties decision due within two weeks
Mr Harris, who also serves as minister for trade, convened the Government Trade Forum at Government Buildings on Friday morning to discuss the agreement reached between US president Donald Trump and European Commission president Ursula von der Leyen.
Tariffs of 15% on EU goods entering the US will take effect on August 7.
The forum heard 'preliminary analysis' from the Department of Finance on the implications of the deal.
The Tánaiste said the 'initial expectation' is that the Irish economy and job creation will 'continue to grow,' though he cautioned that 'a number of variables that just aren't known yet.'
These include tariff-exempt products, US trade deals with other countries, and the timeline for finalising tariffs on the pharmaceutical sector.
Pharmaceuticals are currently subject to a Section 232 inquiry in the US. Mr Harris said Brussels has advised that the process should conclude within two weeks, with pharmaceutical tariffs remaining at 0% until then.
He added: 'We have an assurance from the US that pharma will not get a tariff of any higher than 15%.'
Mr Harris stressed that without the EU deal, 30% tariffs would have applied to goods entering the US from Friday, with EU countermeasures also expected next week.
'There's absolutely no doubt that that would have been a moment of catastrophe in terms of our economic well-being as a country,' Mr Harris said.
The Tánaiste said the 'initial expectation' is that the Irish economy and job creation will 'continue to grow.'
'We are in a position which is challenged, but a position where the Department of Finance expects our economy to continue to grow, albeit at a slower rate, and expects more new jobs to be created next year, albeit at a slower rate.
He noted that while a trade deal is now in place, it is 'no more than a framework agreement' and that many issues remain unresolved.
'The agreement in principle hasn't yet been published, and one hopes that that's because there's still work going on and clarifying further sectors.'
Mr Harris also disputed early commentary suggesting the UK secured a better deal than the EU.
He pointed out that although 10% tariffs will apply to UK goods, the EU's 15% cap includes any additional duties, whereas the UK's 10% rate is in addition to existing tariffs.
He argued that it 'may well mean that some UK tariff rates end up being higher than EU tariff rates'.
As an example, he noted that Irish butter exporters were previously paying a 16% tariff, which rose to 26% when a new 10% duty was introduced in April. That rate will now fall back to 16% under the EU deal, as tariffs won't be stacked.
However, under the UK deal, where stacking is permitted, British butter exporters could still face a 26% tariff.
He added: 'The EU seems to have a commitment in writing to no more than 15% for pharma.
'The UK language is much more vague. It doesn't have a number beside it, so we'll need to see where that brings us in the weeks ahead.'
Elsewhere, Mr Harris declined to comment on the upcoming Budget 2026.
He said the Government remains 'committed' to reducing childcare costs to €200 per month 'over its lifetime', but added that whether fees will decrease this year is 'a matter for budget day.'
He also declined to comment on suggestions that VAT cuts for the hospitality sector may not be implemented until mid-2026.
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