US pharma deal can be 'creative' but Harris admits 10% tariffs are new norm

Extra.ie​

10 hours ago

Simon Harris has said the US is open to 'creative solutions' on a pharmaceutical trade deal with the EU, sparking hope that the industry may escape Donald Trump's tariffs.
While the Tánaiste conceded that US tariffs of 10% will be the 'new normal' regardless of any deal reached in the coming days, he indicated that the US is now recognising its 'interdependence' with Ireland and the EU in relation to pharmaceuticals.
The comments came as EU Trade Commissioner Maros Sefcovic travelled to Washington to meet with his US counterpart, with just six days left to agree on a trade deal before President Trump imposes 50% tariffs on European imports. Maros Sefcovic. Pic: Getty Images
Tánaiste and Foreign Affairs Minister Harris told the Government trade forum yesterday that despite EU efforts, 'the new normal' will be a baseline tariff of 10% on all goods being shipped to the US. But he did acknowledge ongoing negotiations to 'maximise' the number of sectors where there is a zero-for-zero tariff situation, citing aviation and pharma as two key sectors for Ireland.
Irish medicinal and pharmaceutical exports were valued at €99.8billion in 2024 and accounted for almost half of our total goods exported. Of this, €44.3million was exported to the US, with many economists warning that the inclusion of the pharma sector in any tariff war would significantly damage the Irish economy.
Mr Harris said he had been assured by US trade representative Jamieson Greer that the Trump administration was open when it comes to the place of pharma in an EU trade deal. Simon Harris. Pic: Pool Via RollingNews.ie
'He made it clear that he was open to creative solutions when it comes to pharma and I think that's an important recognition that actually pharma between the US and the EU, the US and Ireland, is much more interdependent than perhaps people were led to believe in certain quarters at the start of this process,' he said.
Mr Harris added that while a brief extension to the July 9 deadline is something that can be considered by the EU and US, it would be preferable to, at the very least, deliver a framework agreement to provide certainty to businesses.
Mr Harris and Finance Minister Paschal Donohoe also sought to reassure trade representatives that the Irish economy will continue to grow next year, even with an additional 10% US tariff. However, this growth will come at a 'lower rate than we would otherwise have expected'. Fine Gael leader Simon Harris, Helen McEntee, and Paschal Donohoe. Pic: Rolling News
Mr Donohoe said: 'Our scenario for this year and for next year, on the basis of what we currently know, is that we will still have public finances that will be in surplus, that will be performing well. But as we approach the budget and conclude our work on Budget 2026, it is very likely that those levels of surpluses will be revised. They will be adjusted, but they will still be surpluses.'
Asked how the global economic uncertainty might impact the country's finances, Mr Donohoe said that the Government is 'clear that if we find ourselves confronting an economic shock, we would reprioritise how we maintain capital investment, how we can invest in energy, create and build more homes'.
'That is why the work that is underway at the moment to stabilise the global trade environment is so important, and we are pushing for that work to conclude in a way that recognises and protects national interests that we have,' he said.
Mr Donohoe also said that the Coalition's position will be reflected in October's budget, which will 'prioritise the creation and retention of jobs and keeping our public finances safe while investing in our future'. He said this approach will come with sacrifices.
'We will make decisions closer to the time regarding what is the way in which we will do that. And clearly, if the Government does decide to make investments and decisions in particular areas, we will then decide there are other things that we cannot do. That's the right thing to do. And we'll make the case for that on budget day,' he said.
Separately, Mr Harris confirmed that a decision to defer warning labels on alcohol will be made later this week. The controversial measure was due to come into effect in May 2026; however, there have been rumblings that the plans will be shelved.
Mr Harris said the policy 'came up quite a lot at the trade forum. I'm very much of the view that we need to defer the implementation. It will be a matter for the Minister for Health [Jennifer Carroll MacNeill]… but I expect we'll be able to bring clarity to this in the coming days.'