EU-US trade deal: Business groups welcome certainty but say 15% tariff 'still substantial burden'
On Sunday, US president Donald Trump met with EU Commission president Ursula von der Leyen at his golf course in Scotland to finalise a framework trade deal with the EU.
The agreement will see the US impose 15% tariffs on imports from the bloc.
This is up from the 10% currently in place, but is lower than the 30% Mr Trump threatened to impose from August 1 should a deal not have been reached.
Trade between the EU and the US accounts for almost a third of global trade.
Speaking after the meeting, Mr Trump said: 'I think this is the biggest deal ever made.'
Ms von der Leyen said the deal will 'bring stability, it will bring predictability'.
Ms von der Leyen defended the trade deal as 'the best we could get', adding that it was not to be underestimated given the looming threat of 30% tariffs.
A baseline tariff rate of 15% on EU goods imported into the US would apply to cars, semiconductors and pharmaceutical goods, Ms von der Leyen said.
Meanwhile, a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs.
No decision has been made on a rate for wine and spirits.
The deal also includes $600bn of EU investments in the US, along with EU purchases of US energy and military equipment.
Ibec: Brexit-style supports needed
Ibec chief executive Danny McCoy said the agreement brings an 'end to a significant amount of uncertainty for some businesses'.
'However, a 15% tariff still represents a substantial burden for many industries.
'Sectors which rely heavily on the US market, and operate within small margins, will once again be significantly impacted by an additional 5% tariff on top of what they have already had to absorb over the past several months, and well in excess of the 1% effective tariff which existed before April." He added:
'Our message to the Government, as it was with the 10% tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit.
Chamber Ireland: Viable firms need tariff supports
Chamber Ireland welcomed the agreement on trade tariffs, with its chief executive Ian Talbot stating: 'Certainty is critical for businesses, and we've seen the impact of uncertainty over the past couple of months in terms of investment.
'While tariffs are never welcome news for businesses on either side of the Atlantic, reaching an agreement — however imperfect — is preferable to no deal. It, at least, allows companies to plan and adapt in the short term.'
Mr Talbot also called for the EU and the Government to create a 'fund to support viable businesses in adapting to new tariffs', and also to ensure 'potential arbitrage issues with Northern Ireland are clearly understood and addressed'.
This is the latest deal Mr Trump has reached with a few countries around the world before his August 1 deadline.
Agreements with the US have also been reached with Britain, Japan, Indonesia, and Vietnam, but Mr Trump's administration has failed to deliver on a promise of '90 deals in 90 days'.
He has periodically railed against the EU, saying it was 'formed to screw the US on trade'.
Mr Trump said that the EU wanted 'to make a deal very badly' and said, as he met Ms von der Leyen, that Europe had been 'very unfair to the US'.
His main bugbear is the US merchandise trade deficit with the EU, which reached $235bn in 2024, according to the US Census Bureau data.
The EU points to the US surplus in services, which it says partially redresses the balance.
Mr Trump also talked about the 'hundreds of billions of dollars' that tariffs were bringing in.
Additional reporting Reuters
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