13-05-2025
- Business
- Irish Daily Mirror
Tanaiste to warn Cabinet that US-UK trade deal 'solidifies & formalises tariffs'
The trade agreement struck between the United States and the United Kingdom 'solidifies and formalises tariffs', Cabinet will hear this Tuesday morning.
Tánaiste Simon Harris will update ministers on the latest on trade and tariffs following a number of significant developments in recent days.
This includes this announcement by the EU last week of possible countermeasures in response to US tariffs in the case that negotiations with US President Donald Trump's administration fail.
It comes after the Tánaiste, who is also Foreign Affairs and Trade Minister, held a video conference with Northern Ireland's First Minister, Michelle O'Neill, Deputy First Minister, Emma Little-Pengelly and Minister for the Economy, Caoimhe Archibald.
It follows the joint announcement last week from President Trump and UK Prime Minister Keir Starmer that the two nations had reached a trade deal. However, the 10 per cent tariff on UK goods entering the US will remain.
Mr Harris will tell Cabinet that while initial analysis of that deal indicates that the potential risk to the all-island economy from differential tariff rates has been averted for now, he will also outline his belief that the US agreement with the UK 'solidifies and formalises tariffs'.
He will say this is 'very different' from the desire of Ireland and the EU to implement a free trade deal that breaks down trade barriers, lowers and, in some instances, abolishes tariffs.
The Tánaiste will tell colleagues that the evidence of this deal thus far suggests a new reality that even after any potential trade deal, countries may be operating in a tariff environment with the US, which is 'far from the optimum outcome'.
Speaking last Friday, however, Taoiseach Micheál Martin said he 'welcomed the fact that the United Kingdom and US were able to agree a deal'.
He added: 'We would like to see a similar deal resolved or worked out between the European Union and the United States.'
The Tánaiste has been in contact with EU Trade Commissioner Maros Sefcovic in recent days regarding the proposed countermeasures to set out Ireland's position as it seeks to avoid any unintended consequences for the Irish economy. He will engage directly with the Commissioner and fellow trade ministers at the FAC Trade later this week.
He will also tell colleagues that Ireland welcomes the 90-day tariff cut that resulted from negotiations between the US and China over the weekend.
Elsewhere, Housing Minister James Browne will seek sign-off to extend the First Home Scheme for another two years until June 2027 and add an additional €30 million in funding to the scheme.
It is understood that the new additional €30 million in Exchequer funding will match commitments by the banks participating in the shared equity 'bridge the gap' scheme.
Since the scheme launched in 2023, 3,323 drawdowns have been used to finance the purchase of a new home.
Higher Education Minister James Lawless will seek approval to launch a Global Talent Initiative to 'attract high-calibre research talent to Ireland'.
Areas under consideration include renewable energy, food security, digital technologies and AI, semiconductors and quantum, MedTech and healthcare.
They will also be recruited to look at "social resistance", which will examine matters like cyberattacks and flood defences.
There are already two attaché in the United States attempting to woo researchers to Ireland. However, the Irish Mirror understands there is a plan to "double if not triple" this and to target universities in Europe and elsewhere where researchers may be having second thoughts about moving to the US.
The Department of Higher Education will assist universities with salaries and housing supports, with sources pointing out that many Irish universities already have housing on campuses available.
It is hoped to attract "as many researchers as possible" to Ireland through the programme.
Health Minister Jennifer Carroll MacNeill will bring two memos on Sláintecare to Cabinet. This includes the 2024 implementation progress report and 2025 plan.
The progress report states there have been "significant reductions" in the cumulative daily trolley count in 2024, with numbers down 11 per cent compared to 2023, despite an 8 per cent increase in the number of patients presenting to Emergency Departments.
The Minister will also bring a memo to Government to update on the urgent and emergency care situation report for May. Similar to the Saint Patrick's Day bank holiday, performance improved over the May Bank holiday weekend when compared to the Easter and St. Brigid's bank holiday weekends.
Despite attendances at emergency departments in hospitals being 2 per cent higher over the May Bank Holiday weekend, there were 21 per cent fewer patients waiting on trolleys compared to the same period in 2024.
Education Minister Helen McEntee, meanwhile, will update Cabinet on Leaving Certificate Reform, which will begin its first phase in September and impact 70,000 students.
Sources stated that the changes will 'reduce the pressure on students that comes from final exams while recognising a broader range of skills and ensuring that students have the necessary skills to thrive in a rapidly changing world'.
Teaching unions have criticised the changes, saying their members have not received sufficient training ahead of their introduction.
Ms McEntee will argue at Cabinet that 'significant supports' have been provided, including the sample papers, training for 26,000 teachers, and funding of €12 million for science labs.
