EU to publish expanded list of US tariff countermeasures

RTÉ News​

18 hours ago

Tánaiste Simon Harris has said the European Commission will later publish an expanded list of tariff countermeasures which the EU would consider introducing should an agreement with the US not be reached.
Speaking after a meeting with the new US ambassador to Ireland Ed Walsh, he said the Government would analyse the list once it was published.
"Tariffs always hurt. Tariffs are never good. So there's time between now and 1 August to arrive at the very least, at a framework deal, a declaration that can deescalate this situation, provide certainty for businesses, protect jobs and investment," he said.
Mr Harris, who described the new ambassador as a close contact and friend of US President Donald Trump, said that Ireland and the EU now has to prepare for all situations.
The Tánaiste said: "He (Mr Trump) is negotiating in the way he wishes to. It's not the way we'd like to do it.
"We prefer to do things like sitting around the table, thrashing out the detail and then getting to a good place.
"I think we were very close to that last week of having at least a short framework agreement to calm things down.
"It's incredible that that didn't get over the line, but I still remain confident it can happen in the days ahead."
His meeting with Mr Walsh at the Department of Foreign Affairs was described as constructive and substantive.
Mr Harris also raised the issue of stricter guidelines around the future issuing of J1 visas which will examine students online content.
"I was making the point that we live in a country where young people have very, very strong views.... and they've every right to express their views. Freedom of speech matters," he added.
Harris says there is landing zone for tariffs agreement
Earlier, Mr Harris said he believes there is a landing zone for an agreement in principle that could be reached with the US on tariffs in advance of the imposition of higher rates on 1 August.
Mr Harris said an agreement in principle on trade and tariffs would avoid the imposition of the higher tariffs referenced in Mr Trump's high stakes letter to the European Commission President over the weekend.
His remarks come as European Commissioner Michael McGrath said that in the event of 30% tariffs being introduced by the US, the European Union's response will be "firm, quick and robust".
Speaking on RTÉ's Morning Ireland, Mr McGrath, who is the Commissioner responsible for Democracy, Justice, the Rule of Law and Consumer Protection, said that the EU remains in a process of intense negotiations with the US.
He added that he believes that progress had been made over the course of the talks, as they work towards the revised deadline of 1 August.
"We are particularly conscious of the need, insofar as possible, to remove uncertainty for businesses, because we know how damaging that is to international trade, to the prospects and the investment decisions of companies," Mr McGrath said.
"Tariffs are ultimately paid for by somebody along the supply chain, most likely by the end consumer, and tariffs are also damaging to workers because they undermine the viability of companies," he added.
Mr McGrath described the trade relationship between the EU and US as "mutually beneficial, supporting millions of jobs on both sides of the Atlantic".
"We are negotiating very professionally, in good faith, and we are seeking the best possible deal for European companies because we recognise the importance of trade peace, the importance of stability and of certainty around terms of trade," he said.
Mr McGrath said that the EU and the US need to work together to tackle issues surrounding global trade and added that the EU stands ready to intensify dialogue.
"But let me be clear, in the event of that not being successful and of the 30% tariff threat that was issued by President Trump coming to pass in two and a half weeks' time, then the European response will be firm, it will be quick, and it will be robust," he said.
Mr McGrath said that the EU has been preparing for a range of different scenarios and stressed the importance of unity on behalf of all of the member states.
He said: "There are two different sets of packages of countermeasures that amount to the imposition of tariffs of exports from the US into the EU of over €90 billion; we do not wish for that to come to pass.
"We have a range of instruments and tools, the EU is in a strong position, and these negotiations are ongoing, and we're doing everything we possibly can to get a good outcome for European companies."
Regarding whether the EU might be willing to relax the rules on the regulation of big tech companies as a compromise, Mr McGrath said that the rules are not part of the trade negotiations.
"As an EU, we have to uphold our own autonomy and integrity and our right to set our own rules - those rules apply not just to big US tech companies, but also to Chinese companies and indeed to European companies as well," he said.
Mr McGrath said that there have been discussions with the US administration surrounding the terms of trade.
"We have been generous in our offers, we have put forward proposals around zero for zero tariffs for a whole range of different goods," he said.
The European Commissioner said: "The EU is a world leader in international trade ... the US relationship is critically important, we want to continue to invest in it and support it.
"But we were we are also getting our own house in order by ensuring we diversify our trade relationships, improve the competitiveness of the European economy and break down the remaining barriers in the single market."
He described it as "vital", in addition to the track which the EU is already taking to get "the best deal we can with the US".
Countermeasures 'ready to be used'
EU spokesperson on Trade Olof Gill said Mr Trump's surprise announcement threatening the tripling of tariffs does not "substantially change" the EU's approach.
He said the bloc was given advance warning by the US Administration that it would be making the move.
"Different parties use different approaches in negotiations - carrot and stick is a standard approach, I suppose you could interpret this 30% threat as the American stick," he said.
"We also have a stick on the EU side and that is the substantial rounds of countermeasures we've been preparing," he added.
Mr Gill said such measures are "on the table and they're ready to be used if we need them".
However, he said the EU is focusing on negotiations, rather than taking a more aggressive approach.
"For the moment, we need to really focus on getting an agreed solution over the line," he said.
Speaking on RTÉ's Today with Claire Byrne, Mr Gill said: "We were very close to doing so last week, we believe such an agreement is within reach, and I think you'll see that the alternative ... is ready to go.
"We don't need to do anything more in that sense, if and when we need to deploy it, we can deploy it, but we don't feel we're at that stage just yet."
The EU spokesperson said countermeasures are not a priority for the EU and described tariffs as a "terrible idea".
"We believe we should be doing everything we can to avoid this and that's going to continue to be our approach," he added.
Mr Gill said Mr Trump's tariff threats should be taken seriously, adding "the repercussions are perfectly serious".