Tánaiste insists EU green light for potential counter-tariffs on €93bn of US goods ‘not escalatory'
The 27-nation bloc's executive European Commission had said on Wednesday its primary focus was to achieve a negotiated outcome with Washington to avert 30pc US tariffs that US President Donald Trump has said he will apply on August 1.
The Commission said it would press on in parallel with plans for potential countermeasures, merging two packages of proposed tariffs of €21 billion and €72 billion into a single list and submitting this to EU members for approval.
No countermeasures would enter force until August 7. So far the EU has held back from imposing any countermeasures, despite Trump's repeated announcements of tariffs, the broadest of which have been postponed. EU member states authorised the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations.
The EU and United States appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15pc tariff on EU goods imported into the US, mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision.
Under the outlines of the potential deal, the 15pc rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5pc.
There could also be concessions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.
Washington does not, however, appear willing to lower its 50pc tariff on steel.
The Tánaiste insisted the approval of the counter-tariffs was not escalatory.
"Throughout the negotiations we have been clear that while we would engage in good faith with the US, it was also necessary to prepare rebalancing measures should negotiations not be successful," Mr Harris said.
'This morning the 27 EU Member States have continued with that approach. This is not escalatory – it's a continuation of our calm, measured preparation. Our objective remains a mutually beneficial deal by 1 August," he added.
Mr Harris said "some key Irish sensitivities" have been removed from the list of countermeasures. However the Government anticipated the list, if used, would be impact Irish businesses.
'While we were successful in removing some key Irish sensitivities following intensive consultation with the European Commission, this package of rebalancing measures if implemented would have an adverse effect on European and Irish business," Mr Harris said.
'However let me be clear, while we do not wish to see this list ever come into effect, the EU must prepare for all eventualities and must be enabled to negotiate with the United States from a position of strength. That is why it is now long past time for a deal,' he added.
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