Pharma to escape EU tariffs worth €95bn as US aircraft and whiskey will potentially be hit

Irish Independent

08-05-2025

But there could still be a sting in the tail for Ireland, as whiskey and thoroughbred horses are on the proposed list, which might lead to further US retaliation, should they be imposed.
There is a further potential problem for major employers Ryanair, with tariffs proposed against Boeing, with whom the airline has a pipeline of orders worth €30 billion through to 2034.
EU officials stressed at the Berlaymont in Brussels today that this is a "proportionate" response to US President Donald Trump's so-called Liberation Day tariffs against the EU, which total nearly €380 billion – and is in fact barely more than a quarter of that burden.
But they stress that all options remain on the table, including impositions on services, which could hit big tech, social media and streaming platforms.
Tánaiste Simon Harris said in response to the announcement: 'The Government supported the suspension of the EU's previous package of countermeasures in relation to steel and aluminium. This has helped create important space for negotiations.
'These negotiations remain the main focus for both the EU and Ireland. The Commission is fully engaged in discussions with the US. A negotiated solution remains very clearly the goal and the preferred outcome.
'I strongly support this position. This is also the message I have been delivering in all my bilateral contacts with both the US and EU partners.'
At the same time, he added: 'I understand the need for the EU to undertake further internal preparations in case negotiations are unsuccessful. This is a sensible and measured approach.
'It is really important to stress that these measures will not be implemented immediately. There will be a four week consultation period during which the Commission will be seeking the views of Member States as well as of business and other stakeholders in Europe.
'The proposed package is valued at around €95-€100 billion and covers a range of sectors. The list has just been published and we will be analysing it over the coming days.
'I am committed to working with stakeholder, including through the Government Trade Forum to understand the potential impact of these countermeasures on Ireland. As we have done in the past, we will communicate Irish specific concerns to the Commission.'
Mr Harris said: 'I remain in close contact with Commissioner Sefcovic. I will also be continuing my outreach both with the US and with EU colleagues and I am planning to speak with key partners in the days ahead."
Today's tariffs may not be imposed at all - the aim is for a "mutually advantageous negotiated settlement," officials stressed, even as the UK looks set to announce a tariff deal with the United States today.
The EU is "not pursuing a dollar for dollar approach," yet the countermeasures -- which will now go out to EU members and stakeholders for consultations – hit a wide range of industries and products.
There are €10.5 billion tariffs on US aircraft, with processed food, vegetables and fish products hit, which could have implications for Irish Agrifood later, although the application from the EU side here is limited.
The bulk of impositions will go on industrials – including chemicals, automotive (cars and car parts), engines, electrical equipment, machinery and appliances.
Taoiseach Micheál Martin, who met European Commission President Ursula von der Leyen, will be happy that most of Ireland's wish-list has been met, although there are hits to Kentucky bourbon in response to US 25pc tariffs on EU wines and spirits, currently suspended for 90 days.
The €7.2bn tariffs on electrical equipment will hit many devices, screens and monitors, radar, satellite navigation systems and even jukeboxes.
"We want to protect the very important pharmaceutical sector," said an EU official in a press briefing, adding however, that some US healthcare products were on the list, such as syringes.
In all, €1.3 billion of US alcohol is targeted, but this is a tiny proportion of the overall €95 billion, amounting to less than 2pc – and limiting American scope for response, given its attack on EU alcohol already.
There will also be some export restrictions introduced, if member states agree and there is no transatlantic trade deal, which would stifle some areas of the US economy.
The EU said it was concerned to achieve rebalancing of trade, and there was currently "asymmetry" because of the extent of US impositions, paused for now. It was not a matter of retaliation, they said, but of "being prepared for all scenarios".
Litigation against the United States at World Trade Organisation (WTO) level is simultaneously taking place, but this is expected to wither on the vine if trade talks produce a disengagement from Trump's tariff wars and an equitable trading environment.
EU Trade Commissioner Maros Sefcovic is already in touch with US colleagues and both sides probe for an understanding.
On April 2 last, President Trump announced tariffs for EU goods set at 20pc. The US also imposed a tariff of 25pc on all imports of vehicles and car parts.
These were announced in addition to 25pc tariffs on imports of steel, aluminium, and derivative products the US previously put forward in February.
President von der Leyen responded by announcing the preparation of EU countermeasures against the US, if negotiations to remove these tariffs should fail.
On April 9, the US announced a 90-day pause of the EU-specific 20pc tariff, leaving in force a 10pc tariff.
In response to this pause, on April 14, the EU responded by putting on hold planned countermeasures against US tariffs on EU steel and aluminium imports, "to allow space for negotiations'.
Currently, €379 billion of EU exports to the US (or 70pc of EU exports to the US) are subject to new tariffs (including tariffs put on pause) since the second Trump administration took office.
"Already, the US tariffs are raising costs for business, stifling growth, fuelling inflation and heightening economic uncertainty," the EU Commission said as it announced its potential countermeasures today.