Taoiseach ‘hopeful' EU-US tariff deal will be done this weekend
tariffs
between the European Union and the United States would 'hopefully be signed off before the weekend is over,' Taoiseach
Micheál Martin
has said.
EU negotiators are trying to land a deal that would avert higher rates of import duties which US president
Donald Trump
has threatened on goods coming from Europe.
Speaking on Friday, Mr Martin said it would be 'foolish' to put any bet on when a deal would be signed off by the EU and Mr Trump.
Work was continuing to get a 'framework agreement' over the line, which would comprise the broad outline of a tariff deal, allowing further details to be worked out later.
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'We're certain there will be detailed discussions afterwards in respect of line by line, in terms of many, many products. And so this will continue notwithstanding a framework agreement, [which] hopefully will be signed off before the weekend is over,' he said.
'Part of the reason for the intensity of those negotiations is to try and tie up as much as we can,' he said.
The current outline of a draft agreement would see the EU accept blanket tariffs of 15 per cent on future trade with the US, up from a 10 per cent levy Mr Trump introduced in early April.
The European Commission, the EU's executive arm leading the negotiations, wants any future tariffs on pharmaceuticals to be capped at that level. The EU is also seeking to have higher 25 per cent tariffs the US has put on EU-made cars to be reduced to that rate.
National governments appear willing to stomach an across-the-board tariff of 15 per cent, to end the uncertainty Mr Trump's threats of potentially much higher levies has caused the European economy, or an escalating trade war if no deal is agreed.
'There has been a degree of volatility in all of this, which has been unsettling for investment and that's a concern I have,' Mr Martin said.
The EU wanted to secure some 'certainty' around US tariffs targeting specific sectors, outside of the blanket rate, he said.
The EU was not anxious to have to turn to possible retaliation, such as counter-tariffs on US products, he said.
Speaking in Luxembourg, the Fianna Fáil leader said he hoped 'sense will prevail' in the ongoing negotiations concerning pharmaceutical products.
The sector has avoided US tariffs to date, though Mr Trump previously promised they are coming in a bid to force companies to relocate manufacturing capacity and jobs to the US.
Getting a deal on pharma products was 'of equal significance' to the US side, he said.
Any 'significant disruption' of the heavily intertwined pharma supply chains would be damaging to the US, and potentially lead to shortages of medicines, Mr Martin said.
Access to the European market had been of huge benefit to US pharma multinationals, he said. 'It's a two-way street ... unilateral action on the part of one [side] could ultimately damage the companies themselves and patients and consumers,' he said.
Europe had to look at what it could do to increase trade within the bloc, to compensate for the knock-on impact of US tariffs on transatlantic trade, he said.
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Irish Times
9 minutes ago
- Irish Times
EU-US trade deal: Any future US tariffs on pharma exports to be limited to 15%, EU insists
The European Union is confident that any future US tariffs on its exports of pharmaceutical products would be limited to a 15 per cent rate, under the terms of the recent agreement, senior officials have said. The final terms of the deal were worked out during a meeting between European Commission president Ursula von der Leyen and US president Donald Trump at his Turnberry golf resort in Scotland on Sunday. The deal will lock in tariffs of 15 per cent on most EU imports to the US , but prevent the prospect of an economically devastating trade war. The US has been preparing to levy tariffs on the EU pharma industry, which Mr Trump previously threatened could be at cripplingly high rates of up to 200 per cent. READ MORE The industry has escaped any tariffs to date, but the Trump administration has been planning to hit the sector with specific levies. Ms von der Leyen, who negotiated the final part of the deal with Mr Trump, said the agreement would cap any future pharma tariffs at a blanket 15 per cent rate. The two sides agreed that no tariffs would be charged on imports of aircraft, certain chemicals and some agri-food goods, though the finer details of what agricultural products will benefit from these exemptions are still to be worked out. Challenge for Ireland Minister for Enterprise Peter Burke said there is 'no doubt' Ireland is in a challenging position in relation to tariffs but that the agreement does bring 'some clarity'. Minister for Enterprise Peter Burke. Photograph: Conor Ó Mearáin / Collins Photo Agency Speaking on RTÉ Radio 1's Morning Ireland on Monday, Mr Burke said the EU was four days away from 30 per cent tariffs, which would have been 'significant', while the Government is awaiting more details to emerge. Mr Burke said there would be a number of 'carve-outs' for particular sectors such as aviation, agri-foods and spirits. He said the Government was concerned about the 'stacking mechanism', which refers to the cumulative effect of multiple tariffs applied to the same imported product. 'All of those areas have been called out for separate carve-outs, so we have to see what that will look like and what will that amount to on paper, and that's where the devil is going to be in the detail,' he said. However, businesses are more cautious about the deal. Lobby group Ibec said it represents a 'substantial burden' for many industries, and the most exposed sectors will require Brexit-style supports. 'Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit,' he said. Irish whiskey industry The EU and the US sides are to continue negotiations on the finer points of detail, including possible tariff exemptions for several sectors. It is understood spirits are one area on that front where the commission feel they are making progress, which would be welcome news to the Irish whiskey industry, a big exporter to the US. Eoin Ó Catháin, director of the Irish Whiskey Association, told The Irish Times he hopes the deal can 'provide the framework' for a return to zero-for-zero trade in spirits. 'The EU and US government agreed to this zero-for-zero arrangement in 1997, and since then our shared sector has experienced huge growth in value to the benefit of economies and communities on both sides of the Atlantic,' he said. Jameson whiskey: sells over 1 million cases annually across the Atlantic. Photograph: Aidan Crawley/Bloomberg 'It is therefore logical to return to this. As it currently stands, Irish whiskey and drinks producers face a 10 per cent tariff when exporting to the USA – our biggest market. 'This, combined with a weakened dollar, has placed significant pressure on our distillers, and some have unfortunately had to close their doors. A return to zero-to-zero would be a major help to these exporters.' He added he was hopeful 'a mutually beneficial arrangement and the removal of tariffs can be secured'. Dairy Industry Ireland director Conor Mulvihill said confirmation exports will now be subject to a single 15 percent tariff rate with no additional stacked duties was 'particularly important' for Irish dairy products such as butter. 'While the simplification of the new tariff structure, as set out in the deal, will make it easier for the sector to manage, we remain concerned about the broader implications of any tariff border on the island of Ireland,' he said. Conor Mulvihill 'The dairy industry operates on an all island basis, with integrated supply chains and cross-border trade in raw milk, ingredients, and finished products. 'Any divergence in tariff treatment between Northern Ireland and the Republic of Ireland could introduce complexity, cost, and uncertainty for processors and farmers alike.' Deloitte Ireland chief economist Kate English said the EU 'was wise to pick their battles and to choose certainty'. 'Remember, this 15 per cent is not on top of existing custom duties – a good example we saw this weekend was Kerrygold butter, which is already subject to a 16 per cent custom duty, so will see little difference from yesterday's decision.' Daniel Mulhall, who served as Ireland's ambassador to the United States from 2017 until 2022, posted on X that the deal 'does not look like a great outcome for the EU'. Irish Ambassador to the US Daniel Mulhall speaking at the 2019 Conference In response to his post, former taoiseach Leo Varadkar said the deal will mean 'fewer EU exports to the US and higher prices for Americans'. He added: 'The only thing it's better than is no deal at all and that's only if it sticks.' Paul Sweetman, chief executive of the American Chamber of Commerce Ireland, said a 15 per cent tariff level is 'not an optimum trade environment' and will be a 'significant burden' to businesses already managing a 10 per cent tariff. 'However, the agreement does bring a new stability and allows business decisions to be made with greater certainty,' he added. Meanwhile, European governments and companies reacted with both relief and concern to the trade deal, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. France prime minister François Bayrou said Europe had submitted to the US on a 'dark day' for the union. 'It is a dark day when an alliance of free peoples, gathered to affirm their values and defend their interests, resolves to submission,' Mr Bayrou posted on X. German chancellor Friedrich Merz rapidly hailed the deal, saying it avoided 'needless escalation in transatlantic trade relations'. German exporters were less enthusiastic. The powerful BDI federation of industrial groups said the accord would have 'considerable negative repercussions', while the country's VCI chemical trade association said the accord left rates 'too high'. Italian Prime Minister Giorgia Meloni also expressed support for the agreement, calling it 'sustainable.' Market reaction European shares advanced to a four-month high on Monday, led by gains in pharma and semiconductor stocks. The pan-European Stoxx 600 index rose 0.7 per cent. Most regional bourses were also in the green, with Germany's blue-chip Dax rising 0.6 per cent and France's Cac 40 gaining 0.8 per cent. UK's FTSE 100 added 0.1 per cent. Euro area government bond yields edged down on Monday, while investors assessed their bets on European Central Bank monetary easing. Markets saw an additional 25-basis-point rate cut as likely, but pushed back the timing, assigning a 65 per cent probability for the move by December and an 85 per cent chance by March 2026.
RTÉ News
26 minutes ago
- RTÉ News
Heineken cheers EU-US trade deal as tariff problems grow
Dutch brewer Heineken has today welcomed an EU-US trade deal and said it was weighing all options to deal with growing tariff challenges long-term, including shifting manufacturing. The world's second biggest brewer sends beer, especially its namesake lager Heineken, to the US from Europe and Mexico, and has also suffered from indirect impacts on consumer confidence in key markets like Brazil. Nevertheless, it reported a 7.4% increase in organic operating profit in the first half, versus analyst expectations of 7%, crediting growth in once-difficult regions like Africa and Asia and cost savings. CEO Dolf van den Brink welcomed the certainty brought by the trade deal clinched yesterday, which avoided tariffs on EU goods of 30%. All options are being considered to mitigate tariffs long-term, including shifting manufacturing, he said, adding that such moves were capital intensive and would first need more consistency in policy. "We look at all options from continuing with our current set up, a more hybrid version, or otherwise," he told journalists on a call. "If and when we deem them financially to be more attractive in the mid- to long-term, we would for sure explore them." Heineken continues to expect annual profit growth of between 4% and 8%. The company said its second-quarter revenues and volumes rose 3.3% and fell 0.1% respectively on an organic basis, also beating analyst expectations. The brewer has been locked in difficult, prolonged price negotiations in Europe, which offset a boost from a late Easter and good weather to hit sales in the region, including its key non-alcoholic portfolio.
Irish Times
an hour ago
- Irish Times
Small Irish businesses say tariffs will hurt US consumers most
Many smaller Irish exporters have mixed feelings about the trade agreement between the European Union and the United States. Last week, they understood there was still an outside chance that discussions could go off the rails with the possibility of a trade war. At the same time, they are less than impressed with the outline deal being presented in the media. Sarah Furno, of Cashel Blue, greeted the news from Scotland yesterday with a 'degree of relief' and the sense that the Tipperary cheese company can now make more definite plans for the US market. Sarah and Sergio Furno of Cashel Blue cheesemakers 'Uncertainty is impossible and disabling especially in a prolonged manner,' she says. 'Overall we feel it could have been worse. It's a relatively even playing field for imports and there is enough light to keep doors open. READ MORE 'Of course it will hurt the average American most'. Ms Furno said the 30 per cent rate threatened by US President Donald Trump would have pushed Cashel products off US shelves. Leo Cummins, of Hazelbrook Confectionery in Co Kildare, decided earlier this year to shun the US market due to the uncertainty. On hearing the news of the agreement, he said he was even more convinced that ignoring the US market in the short term was 'the right thing to do'. 'Obviously one has a concern that the deal as it stands looks quite lopsided in favour of the US,' he says. Leo Cummins of Hazelbrook Confectionary in Newbridge, Co. Kildare. Photograph Nick Bradshaw 'I personally think that American candy sales will decline in Ireland, the UK and Europe over the next three years as consumer sentiment towards America becomes more negative. 'Whilst it appears that there will be no tariffs on US candy imports into Europe, American candy manufacturers will have to pay extra for their cocoa and other ingredients that are not produced in America and that will push their costs higher and hence their prices to European customers.' Mr Cummins says more expensive US confectionery will open doors for Hazelbrook in the UK and Europe as importers there will look to find cheaper alternatives. Whiskey manufacturers were particularly concerned at the possibility of trade talks failing. Brendan Carty, of Killowen Distillery in Co Down, will now have to contend with two different trade deals – the EU deal at 15 per cent and the UK one at 10 per cent. As Irish whiskey is bottled and bonded on both sides of the Border, it presents new headaches for the likes of Killowen. 'If a distillery sells 50 per cent distilled in Killowen and 50 per cent distilled in the Republic, I suppose our tariffs will be complicated and will fall between the two,' says Mr Carty. 'That's the nature of navigating a global market. It's always changing and very complex. It's the consumers who will take the hurt in the end. 'It's always a navigation exercise working things out with overseas partners, part and parcel of the business, so we won't get too upset about it'. The Irish Whiskey Association still hasn't ruled out the chance that the agreement could yet see the return of 'zero-for-zero' trade in spirits. Director Eoin Ó Catháin says the 10 per cent rate currently being applied, along with a weakened US dollar, has forced some operators to shut their doors. 'We are hopeful that, as we learn more about this deal and discussions on its implementation continue, a mutually beneficial arrangement and the removal of tariffs can be secured,' he says. The overriding sentiment from many exporters is that the deal represents an unwanted regression. With no upsides for Irish businesses – other than avoiding even worse terms – it is the new price of doing business with the US.
