Harris urges EU to stay focused on US negotiations

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a day ago

Tánaiste Simon Harris has said Europe must remain focused on securing a US trade deal after a New York court blocked Donald Trump from imposing sweeping tariffs.
The Court of International Trade ruling came after several lawsuits arguing the US president had exceeded his authority, left American trade policy dependent on his whims and unleashed economic chaos.
The White House immediately appealed the ruling by the US Court of International Trade. And late last night, a US appeals court temporarily reinstated Mr Trump's tariffs during the appeals process. Senior officials yesterday insisted the President will continue with the policy. In a statement – prior to the temporary reinstatement – Mr Harris did not go as far as welcoming the US court ruling but said that the Government has 'noted' the decision. US president Donald Trump. Pic:'I want to stress the position once again today that what is required now is for both sides, the EU and the US, to engage in calm and measured dialogue, and to do so in good faith,' he said.
The Fine Gael leader highlighted concerns from businesses resulting from 'continuing uncertainty over tariffs'. 'We will continue to monitor the implications of the court decision in the US while keeping our main focus on the negotiations at hand,' Mr Harris said. Analysts have said that the end to tariffs should be celebrated across Europe as it will curtail Mr Trump's ability to follow through on threats of imposing a 50% tariff on EU goods – which are due to take effect on July 9.
'The easing of some tariffs could calm inflationary pressures and stabilise worrying growth prospects, particularly in China, which has borne the brunt of Trump's tariff policy, and we've seen a positive response in stock markets around the world,' Professor Joe Nellis, economic adviser to financial services firm Baker Tilly Ireland, said. Tánaiste Simon Harris. Pic: Leah Farrell/RollingNews.ie
But Prof. Nellis noted that the decision also 'clouds the global economy in even deeper uncertainty'. Andrew Thurston, a customs consultant who also works with Baker Tilly, echoed this sentiment.
'If the court ruling is upheld, we can expect to see fresh trade negotiations opening up. Yet, there will be no return to normality,' Mr Thurston said. The decision comes after Mr Trump said he will pause his threatened 50% tariffs on the EU until July 9, following a 'very nice call' with European Commission president Ursula von der Leyen. In April, Mr Trump announced a 20% tariff on EU goods being sold into the US.
He later reduced that to 10% until July 9 to allow time for talks with Brussels on a potential deal. On Friday, the president claimed the talks were 'going nowhere' and said he was recommending the 50% tariff comeinto effect on June 1.
He rowed back on the decision on Monday, claiming Ms von der Leyen called him asking for an extension to the date. Meanwhile, senior White House officials said yesterday they would immediately appeal and try to put a hold on the court order, insisting the President will continue with the policy. Peter Navarro, Mr Trump's trade chief, told Bloomberg: 'We think we have a strong case. Yes, we will immediately appeal and try to stay the ruling.' European Commission president Ursula von der Leyen. Pic:He added that the US was still negotiating trade terms with countries, saying: 'These deals are going to happen.' White House press secretary Karoline Leavitt said the court's decision was an example of 'judicial over-reach' by the judges, adding that the tariffs were 'legally sound' and the judges had 'brazenly abused their judicial power'.
The three judges were nominated to the court by three presidents: Ronald Reagan, Barack Obama and Mr Trump.
Lizzy Galbraith, senior political economist at UK fund manager Aberdeen, said: 'The ruling has significant implications for countries that were in trade negotiations with the US. Many are likely to wait for clarity on whether the block on tariffs is maintained before making big concessions.
'So, the ruling undercuts Trump's negotiating leverage. Even if the ruling is upheld, the adminitration will have alternative routes to implement tariffs. But these will be slower and more targeted, as opposed to the current sweeping approach.