EU tariff response will be 'firm and robust'

RTÉ News​

a day ago

European Commissioner Michael McGrath has said that in the event of 30% tariffs being introduced by the United States, 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.
"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," he said.
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.
"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," Mr McGrath added.
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".