Latest news with #EUtrade
BreakingNews.ie
4 hours ago
- Business
- BreakingNews.ie
Irish MEP says counter-tariffs should 'avoid EU shooting itself in the foot' in letter to commissioner
Irish MEP Barry Cowen has written to the EU trade commissioner to request the protection of three Irish industries from planned counter-tariffs against the US. The EU is still hoping to make a deal with US president Donald Trump's administration, but a second counter-tariff list is due to take place on July 14th or earlier if negotiations fail. Advertisement In the letter to EU trade commissioner Maroš Šefčovič, seen by Mr Cowen requested additional protections for spirits, medical technologies and aviation. Mr Cowen first outlines his belift that US bourbon whiskey should be excluded form counter-tariffs, as "this risks triggering US retaliatory tariffs - potentially up to 200 per cent - on EU alcohol exports". He adds that Ireland exports 53 times more whiskey than it importants bourbon - €420 million vs €8 million. At the EU level, spirits exports to the US are €2.9 billion annually, while imports stand at €1 billion. With this in mind, Mr Cowen argues that a 'zero-for-zero tariff arrangement on spirits is vital to protect this key sector and avoid a situation of the EU shooting itself in the foot. I urge the Commission to reaffirm this in its updated list". Advertisement Mr Cowen goes on to write that he is "increasingly alarmed at the prospect of tariffs on US-origin medical technologies, components and diagnostics. The current draft includes 577 categories, covering both medtech inputs and finished products. Its implementation would significantly disrupt healthcare systems and the medtech industry across the EU, including Ireland". Ireland's medtech sector employs over 50,000 people and exports €15 billion annually, representing 8 per cent of our total exports. He asks the EU Commission not to include medical technologies in the final counter-tariffs list, "as industry groups have warned, these products are vital to public health and should not be used as leverage in trade disputes". On aviation, Mr Cowen writes: " I would like to highlight the risk to Ireland's aviation and leasing sectors should US aircraft remain on the EU's retaliation list. Alongside Ryanair, Europe's largest airline group, Ireland is home to global aircraft lessors such as AerCap, all heavily reliant on US-made aircraft. Advertisement "Ryanair operates over 600 Boeing aircraft and it, plus Aercap, have hundreds of more on order. Including these in a tariff regime would severely impact Ireland's leasing and airline industries, with wider implications for the European market. I strongly urge the Commission to exclude US aircraft from the list." In conclusion, Mr Cowen class for measures that are "measured, strategic and not harm sectors where the EU - and Ireland - stand to lose far more than we gain".
The Independent
2 days ago
- Business
- The Independent
Starmer lifts Brexit red tape on certain imports from next month
The UK government has announced it will scrap planned border checks on fruit and vegetable imports from the European Union, preventing the measures from taking effect on July 1. This decision, attributed to what the government calls Sir Keir Starmer 's Brexit reset deal, is expected to save businesses approximately £200 million in additional supply chain costs, according to the produce sector. The move has been welcomed by industry stakeholders who had voiced concerns over the potential financial burden of the proposed controls. Bosses had warned that this could add to inflation, put pressure on food supply chains and threaten the future of businesses. The new SPS (sanitary and phytosanitary) deal with the EU will eliminate routine border checks for food exports and imports on certain products. The Government said impending checks on 'medium-risk' fruit and vegetables, such as tomatoes, grapes, plums, cherries, peaches and peppers, will now not be introduced. The latest relaxation in trade rules will take place until January 31 2027 as a 'contingency measure', according to officials. Biosecurity minister Baroness Hayman said: 'This Government's EU deal will make food cheaper, slash bureaucracy and remove cumbersome border controls for businesses. 'A strengthened, forward-looking partnership with the European Union will deliver for working people as part of our plan for change.' It is the fourth time the border check plans have been pushed back, with the proposals previously set to come into force in January. The checks on fruit and vegetables were the latest phase of the Government's Border Target Operating Model which introduced checks on animal and plant products last year.
BreakingNews.ie
26-05-2025
- Business
- BreakingNews.ie
EU engaging ‘sensibly' with US administration following tariff threat
The European Union has been engaging 'sensibly' with the US administration over its threatened tariffs on all EU imports, the Taoiseach has said, as he welcomed a decision to pause the move until July. Taoiseach Micheál Martin said he believes the US is anxious to reach a deal on trade with the EU, and that Donald Trump's administration has issues it wants resolved through the negotiations. Advertisement It comes as Mr Trump said he will pause his threatened 50 per cent tariffs on the EU until July 9, following a 'very nice call' with European Commission President Ursula von der Leyen. In April, Mr Trump announced a 20 per cent tariff on EU goods being sold into the US. He later reduced that to 10 per cent until July 9th to allow for time for talks with Brussels on a potential agreement. President Donald Trump has threatened to increase the tariffs on goods imported from the EU (Niall Carson/PA) On Friday, Mr Trump claimed the talks were 'going nowhere' and said he was recommending that the 50 per cent tariff rate comes into effect on June 1st. He rowed back on the decision on Monday, claiming that Ms Von der Leyen called him asking for extension to the date. Advertisement Mr Martin, who attended the Global Economic Summit in Killarney, Co Kerry, on Monday, welcomed the move. 'I do believe that the European Union has been engaging sensibly on this. I do believe the US side is anxious to get a deal on this that's sustainable too,' he said. 'They have issues, the US have issues that they want resolved through this negotiation. 'But all of the indications in terms of the interaction between Maros (Sefcovic) and his counterparts is that they wanted a deal here. Advertisement 'Europe has responded, so far, in a fairly modest and sensible way. 'We need to stay focused on those sectors that Ireland is doing well in, and I've been in fairly regular contact now over the last four months with leaders in the pharmaceutical industry, medtech and the technology industry. 'I spoke to a lot of CEOs, getting their perspective on what's happening in the US, and also their own sense of how it affects their companies and their facilities. 'Suffice to say that I think everybody so far appreciates the European Union's approach in terms of not overreacting to various announcements and to various decisions, but rather to focus on a negotiating resolution to this. Advertisement 'I welcome the conversation that President Trump has had with President Von der Leyen, and that we're back to the original timetable of July for what Europe and the US to negotiate a deal. 'But tariffs are not good for our economy. They're not good for the world economy. They're not good for consumers. 'It's absolutely important that we can get a realistic and reasonable deal between Europe and the United States to help consumers, to help citizens across the world.' Mr Martin said there is a lot of 'wait and see' among businesses and investors, saying that many are uncertain about the future. Advertisement He said that uncertainty changes the public's spending behaviour, which has an impact on the domestic economy. In a statement, Tánaiste Simon Harris said: 'I want to welcome confirmation from President Trump that the threatened higher tariffs are paused until July 9th. 'This follows contact between President Von der Leyen and the US President who spoke yesterday, as well as the discussions on Friday between Commissioner Sefcovic and his US counterparts. 'These contacts at the highest political level present the opportunity for negotiations to move forward. This is our priority. We want to see meaningful and substantive talks. 'The EU-US economic relationship is an engine of growth for the entire world. 'There is no doubt that the circumstances are challenging at present but I am confident that we can find a way forward. 'Ireland will continue to contribute actively and positively to these efforts. I remain in close and ongoing contact with Commissioner Sefcovic and with our EU partners and, of course, we will continue our outreach to the US. 'We have much work to do and no time to waste to find a deal that that is good for both economies and protects jobs and investment.'
Yahoo
26-05-2025
- Business
- Yahoo
What EU exports could be hit hardest by Trump's 50% tariff threat?
Hours after it was revealed that Germany's GDP had performed unexpectedly well in the first quarter—largely driven by strong exports—the future prospects of Europe's largest economy, and indeed the wider bloc, collapsed dramatically. US President Donald Trump lost patience last Friday, stating in a social media post that trade negotiations with the European Union were 'going nowhere.' He threatened to impose a 50% tariff on EU goods imported into the United States, effective from 1 June. Subsequently, after talking with European Commission President Ursula von der Leyen over the weekend, he postponed imposing the enormous tariff until 9 July 2025, provided no agreement is reached before then. 'Europe is ready to advance talks swiftly and decisively,' Von der Leyen said. 'To reach a good deal, we would need the time until July 9.' Related Why Trump's tariffs are a serious threat to the German car industry Trump the unifier? How Europe could benefit from Trump's policies Given that the US was the largest partner of EU exports of goods in 2024 (20.6%), worth more than €530bn in 2024, according to Eurostat, the impact of such a tariff is sizeable. Most analysts agree that it would certainly result in a recession in the eurozone, triggering the European Central Bank to cut the key interest rates further than previously expected. 'A 50% tariff could substantially hamper growth and prompt the ECB to continue its monetary easing,' analysts from private banking and investment house Edmond de Rothschild said in an email. 'If the US administration proceeds with its threat of 50% tariffs on EU goods, and the EU responds with a delayed and more limited retaliation, a more accommodative monetary policy stance than the currently forecast would be warranted,' analysts from Barclays said in an email, adding that it could potentially trigger a deep recession in the eurozone which 'would likely force ECB's rates closer to ZLB [when short term interest rates hit zero, ed.]'. Before the US President's threat, the European Commission lowered its economic forecast, factoring in not only the potential 10%-20% tariffs but the major impact of uncertainty. That also affected the latest eurozone PMIs, which started declining, showing contraction in services, while the manufacturing sector was holding up better. However, manufacturing is among the key sectors that are prone to suffer should the US impose high tariffs on EU goods. According to a recent report by Eurostat, the most important goods traded by the EU and the US are medical and pharmaceutical products for exports, and petroleum for imports. The EU's top 5 most exported groups of goods in 2024 made up half (49.5%) of all exports to the United States. The top exports were medicinal and pharmaceutical products (22.5%), with their value reaching nearly €120bn last year. This category was followed by road vehicles (9.6%), worth almost €51bn. (The EU already faces 25% US import tariffs on its steel, aluminium and cars.) The European aircraft sector, including Airbus, is also expected to come into the crosshairs of the US. Previously, the EU put Boeing on its proposed list of US products worth €95bn that could be hit with EU counter-tariffs in case of no deal. In total, the EU GDP could be hit by 0.5%, according to Maria Demertzis, the head of the economy strategy centre at the Conference Board think-tank in Brussels, cited by the FT. She based her forecast on a previous study by the European Commission that counted on 20% tariffs lowering EU GDP by around 0.2% annually, driven mainly by weaker exports. The EU countries that export the most to the US, therefore the most vulnerable to such tariff hikes, include Germany, Ireland, Italy and France. Germany was the largest exporter of goods to the United States in 2024, due to the high volume of vehicle exports and pharmaceutical products. Ireland is mainly exposed through its pharma sector, as many such companies have factories in Ireland where taxes are low. Italy is also among the vulnerable member states, with high exposure in transport equipment, car manufacturing, fashion and pharmaceuticals. Analysts expect volatility in the markets in the little more than one month left for the negotiations to yield. Previously, the EU showed signs that the current 10% is potentially going to stay. 'It is clear from our discussions with the Commission that it will be difficult to go below 10% US tariffs,' a European diplomat told Euronews last week before the US President's latest threat. Meanwhile, the European Trade Commissioner Maroš Šefčovič was due to speak with his US counterparts on Monday afternoon. Sign in to access your portfolio
Reuters
26-05-2025
- Automotive
- Reuters
What's at stake as Trump's tariffs threaten EU exports
May 26 (Reuters) - U.S. President Donald Trump has backed away from a threat to impose 50% tariffs imminently on imports from the European Union, giving more time for talks between Washington and the 27-nation bloc to produce a deal. Economically, both sides have much at stake. The United States was the trading bloc's biggest export partner in 2024, making up 20.6% of exports, according to Eurostat. Medicinal and pharmaceutical products were the EU's most exported sector to the U.S in 2024, followed by motor vehicles and aircraft and associated equipment, the data showed. The three largest exporters to the United States in the EU were Germany, which exported 161 billion euros ($182.62 billion) worth of goods, Ireland, at 72 billion euros, and Italy, at 65 billion euros. Below is an overview of the biggest EU exports to the U.S. by sector: The EU exported pharmaceutical products and medicaments worth around 120 billion euros to the U.S. in 2024, according to Eurostat data. Although the Trump Administration initially spared pharmaceutical products from the reciprocal tariffs he announced on what he called "Liberation Day", it was not immediately clear if the industry would continue to be shielded. Some of the EU's biggest pharmaceutical companies are - Novo Nordisk ( opens new tab - Bayer ( opens new tab - Roche (ROG.S), opens new tab - Novartis (NOVN.S), opens new tab AUTOMAKERS EU countries export around 750,000 vehicles a year to the U.S., according to consulting firm AlixPartners. Worth around 40 billion euros, this accounts for 14% of the EU auto industry's total output in terms of volume, and 24% in terms of value as most cars exported to the U.S. are premium models. As a result, the U.S. was the second largest market for EU car exports in 2024 in terms of value, data from auto industry group ACEA shows. Mercedes-Benz ( opens new tab, Stellantis ( opens new tab and Volvo Cars ( opens new tab are among automakers who have withdrawn their 2025 financial guidance, citing the uncertainty caused by U.S. trade policy. Germany's Volkswagen Group ( opens new tab is highly exposed to the tariffs, as its premium brand Audi does not manufacture in the U.S., though it has said it plans to announce a location to build some of its best-selling models in the market this year. Toulouse-based Airbus ( opens new tab is France's second-biggest exporter and delivers some 12% of its jets to the United States, some of which are assembled locally, according to Cirium data. Among the biggest suppliers to Airbus and Boeing (BA.N), opens new tab is CFM International, the world's largest engine maker by volume, co-owned by France's Safran ( opens new tab, and GE Aerospace (GE.N), opens new tab. The European Union also delivers car parts and engines into the U.S.. Companies that could be affected by tariffs include MTU Aero Engines, which manufactures military aircraft engines and repairs and maintains commercial engines. European companies manufacturing car parts, including engines and motors: - Steyr Motors ( opens new tab - MTU Aero Engines ( opens new tab - DEUTZ ( opens new tab ALCOHOL Of the alcoholic beverages worth around 9 billion euros that the EU supplies to the U.S., European spirits made up 2.9 billion euros in 2024, according to trade group spiritsEurope. U.S. spirits companies are also invested in Europe and throughout the sector's supply chain, meaning any tariff damage to them puts jobs at risk beyond the European Union, SpiritsEurope had told Reuters in March. Some of the biggest European alcohol producers include: - Dutch brewer Heineken ( opens new tab - British spirits maker Diageo (DGE.L), opens new tab, owner of many European brands - Beer maker Carlsberg ( opens new tab Exports of perfumes, essential oils, cosmetics, and toiletries to the United States were worth $10.47 billion in 2024, according to the United Nations Comtrade database. Of this, French cosmetics exports to the U.S., from companies such as L'Oreal ( opens new tab, reached about 2.5 billion euros per year. The sector's largest groups sell roughly a quarter of their products to U.S. consumers, while exposure among smaller brands varies, from 14% at outerwear company Moncler ( opens new tab to 46% at sandals-maker Birkenstock (BIRK.N), opens new tab. France's luxury industry - the world's largest - employs over 600,000 people, data from the economy ministry shows. Italy, which produces most of the world's high-end leather goods, is also highly exposed to international trade. The two countries are the largest exporters of most luxury products to the United States. S&P analysts cited the luxury sector in a note as one of those most exposed to U.S. tariffs, as companies have only limited ability to move production to the United States. ($1 = 0.8816 euros)
