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Irish Examiner
01-08-2025
- Business
- Irish Examiner
Ireland avoids ‘catastrophic' US tariffs as pharma duties decision due within two weeks
American tariffs on pharmaceuticals could be finalised within the next fortnight, as Tánaiste Simon Harris insisted Ireland avoided a 'moment of catastrophe' thanks to an EU-US tariff deal. Mr Harris, who also serves as minister for trade, convened the Government Trade Forum at Government Buildings on Friday morning to discuss the agreement reached between US president Donald Trump and European Commission president Ursula von der Leyen. Tariffs of 15% on EU goods entering the US will take effect on August 7. The forum heard 'preliminary analysis' from the Department of Finance on the implications of the deal. The Tánaiste said the 'initial expectation' is that the Irish economy and job creation will 'continue to grow,' though he cautioned that 'a number of variables that just aren't known yet.' These include tariff-exempt products, US trade deals with other countries, and the timeline for finalising tariffs on the pharmaceutical sector. Pharmaceuticals are currently subject to a Section 232 inquiry in the US. Mr Harris said Brussels has advised that the process should conclude within two weeks, with pharmaceutical tariffs remaining at 0% until then. He added: 'We have an assurance from the US that pharma will not get a tariff of any higher than 15%.' Mr Harris stressed that without the EU deal, 30% tariffs would have applied to goods entering the US from Friday, with EU countermeasures also expected next week. 'There's absolutely no doubt that that would have been a moment of catastrophe in terms of our economic well-being as a country,' Mr Harris said. The Tánaiste said the 'initial expectation' is that the Irish economy and job creation will 'continue to grow.' 'We are in a position which is challenged, but a position where the Department of Finance expects our economy to continue to grow, albeit at a slower rate, and expects more new jobs to be created next year, albeit at a slower rate. He noted that while a trade deal is now in place, it is 'no more than a framework agreement' and that many issues remain unresolved. 'The agreement in principle hasn't yet been published, and one hopes that that's because there's still work going on and clarifying further sectors.' Mr Harris also disputed early commentary suggesting the UK secured a better deal than the EU. He pointed out that although 10% tariffs will apply to UK goods, the EU's 15% cap includes any additional duties, whereas the UK's 10% rate is in addition to existing tariffs. He argued that it 'may well mean that some UK tariff rates end up being higher than EU tariff rates'. As an example, he noted that Irish butter exporters were previously paying a 16% tariff, which rose to 26% when a new 10% duty was introduced in April. That rate will now fall back to 16% under the EU deal, as tariffs won't be stacked. However, under the UK deal, where stacking is permitted, British butter exporters could still face a 26% tariff. He added: 'The EU seems to have a commitment in writing to no more than 15% for pharma. 'The UK language is much more vague. It doesn't have a number beside it, so we'll need to see where that brings us in the weeks ahead.' Elsewhere, Mr Harris declined to comment on the upcoming Budget 2026. He said the Government remains 'committed' to reducing childcare costs to €200 per month 'over its lifetime', but added that whether fees will decrease this year is 'a matter for budget day.' He also declined to comment on suggestions that VAT cuts for the hospitality sector may not be implemented until mid-2026.
RTÉ News
31-07-2025
- Business
- RTÉ News
Tánaiste to hold talks with NI Executive on US trade deals
Tánaiste and Minister for Foreign Affairs and Trade Simon Harris is to hold talks with the leaders of the Northern Ireland Executive this evening on the trade deals with the US. A key focus of the meeting will be the prospect of two different tariff rates being applied on the island of Ireland. An agreement was reached last weekend between the European Commission President Ursula von der Leyen and the US President Donald Trump that most goods exported from the EU to the US will be subject to a 15% tariff. However, exports from Northern Ireland into the US are subject to a 10% levy, under the deal made between the UK and the US. Mr Harris has warned that the differentiation will pose "huge complexities" for businesses. Mr Harris' talks with senior figures in the Northern Ireland Executive, including with First Minister Michelle O'Neill, comes ahead of a convening of the Government Trade Forum tomorrow. The meeting at Government Buildings has been called to map out Ireland's response to the announcement by Mr Trump that 15% tariffs will be applied on EU goods. The forum is comprised of State agencies, business groups, unions and senior ministers. A spokesperson for Mr Harris said: "With a lower tariff rate of 10% announced for the UK, the Tánaiste will seek the views of stakeholders as to the scale of the challenge that would be posed by two different rates." Mr Harris is also expected to receive an update tonight from the EU's lead negotiator on trade, Commissioner Maros Šefčovič. It is understood they will discuss the ongoing work by the European Commission to agree on a final negotiation text with the US, and whether exemptions may be granted for certain key sectors.
Irish Daily Mirror
02-07-2025
- Health
- Irish Daily Mirror
Decision to defer alcohol labelling in coming days as tariff deadline looms
A decision to defer warning labels on alcohol will be made later this week amid concerns about global trade, Tánaiste Simon Harris has confirmed. However, there has been some pushback to the plan, with one Government source suggesting that the move had very little to do with trade in the first place. The Government Trade Forum met on Wednesday at Government Buildings to discuss the tariffs situation a week out from US President Donald Trump's 90-day pause coming to an end. In May 2023, Stephen Donnelly, the former health minister, signed the Public Health (Alcohol) (Labelling) Regulations 2023. It was envisaged that the law would ensure that the labels of alcohol products would state the calorie content and grams of alcohol in the product. They would warn about the risk of consuming alcohol when pregnant and about the risk of liver disease and fatal cancers from alcohol consumption. It was due to come into effect in May 2026 following a three-year lead-in time. However, there have been rumblings in recent weeks that the plans would be shelved. Speaking at Government Buildings on Wednesday, the Tánaiste confirmed a decision to defer them will be made in the coming days. He said: 'This issue came up quite a lot at the trade forum as well. 'I'm very proud of the progress we've made as a country on public health and very proud of the Public Health Act. I would have played a part in the passage of that legislation when I was Minister for Health. 'I think there's a legitimate issue in relation to the timing, in relation to changing the labels on alcohol bottles. 'What we don't want to do for a sector that's already quite challenged and already experiencing significant disruption as a result of the trade environment, is impose, at this time, a further trade barrier or a potential trade barrier. 'I'm very much of the view that we need to defer the implementation. It will be a matter for the Minister for Health [Jennifer Carroll MacNeill] and we'll work closely together on this to decide a timeline in relation to that, but I expect we'll be able to bring clarity to this in the coming days.' However, there has been some pushback in Government over the decision to defer the labelling, with one senior source calling it 'bullsh*t'. They argued that the only products that need to be labelled are those sold on the Irish market and that labelling has 'nothing to do with trade'. Elsewhere, the Tánaiste stated that a week away from the tariff deadline, '10 per cent seems to be the baseline' and that the EU will be seeking to 'maximise the number of sectors where there is zero for zero'. He said: 'You can only judge President Trump on what he's done and in the only agreements that President Trump has reached so far, tariffs have been embedded. 'In fact, at the moment, the choice isn't between 10 per cent and zero. Remember, this day next week (Wednesday), 10 per cent is due to rise to 50 per cent if there isn't either an extension or an agreement. 'The European Union and Ireland want zero tariffs. We don't believe in tariffs. We believe they're not a good idea. 'But we also have to, obviously, negotiate a way forward here.' The Irish Mirror's Crime Writers Michael O'Toole and Paul Healy are writing a new weekly newsletter called Crime Ireland. Click here to sign up and get it delivered to your inbox every week
Irish Examiner
01-07-2025
- Business
- Irish Examiner
Whiskey, horses, and medtech key areas for tariff side deals in EU-US trade agreement, Cabinet to hear
Hammering out tariff side deals across key areas such as whiskey, thoroughbred horses, and the medtech sector will be the best Ireland can hope for in an EU-US trade agreement, the Tánaiste is expected to tell colleagues on Tuesday. With just a week to go until the negotiation deadline, Simon Harris will tell Cabinet that 10% baseline tariffs in some sectors will pose challenges for the Irish economy and businesses. The Tánaiste will update ministers of a growing belief at an EU level that an agreement can be reached within the narrow timeframe on an outline deal. He will say that any deal will have to be assessed against what exclusions from a baseline 10% tariff can be secured, including scope for zero-for-zero arrangements for key sectors, as well as clarity on the outcome of the Sector 232 investigations — including on pharmaceuticals, semiconductors, and aviation. Last month, Mr Harris wrote to the EU's chief negotiator Maroš Šefčovič, in a bid to have whiskey, thoroughbred horses, and the medtech sector removed from the list of counter-tariff items, as doing so would have a significant impact on Ireland. In a speech to be delivered later on Tuesday at an event marking exactly one year until Ireland takes up the EU presidency, the Tánaiste will say that the ongoing trade talks 'will fundamentally alter the union's relationship with the US'. We remain hopeful of a deal but, whatever the outcome, it is clear tariffs will remain a feature of the geopolitical trading arrangements "Europe has stood tall together, and this has been essential in ensuring we get the best possible outcome. "But there is nobody standing here today that can predict what will happen next week with certainty," he is expected to say. Social housing Mr Harris will chair a meeting of the Government Trade Forum on Wednesday, and will travel to Berlin on Friday to meet with his German counterpart where EU-US trade relations will feature high on the agenda. Meanwhile, housing minister James Browne is to bring a number of memos to Cabinet on Tuesday — including measures to cut red tape for local authorities to construct social housing by simplifying the current four-step approval process into one. Mr Browne will also bring forward the Planning and Development (Amendment) Bill 2025 that will give people, under certain circumstances, an extension of up to three years of their planning permission when facing a judicial review. There were more than 40,000 non-commenced residential units on inactive development sites in Dublin alone at the end of last year, and it is estimated that around 15,000 of these units are due to expire within the next two years. Mr Browne hopes to fast-track this legislation to enact it before the summer.
RTÉ News
19-05-2025
- Business
- RTÉ News
Taoiseach welcomes 'landmark moment' from EU-UK summit
Taoiseach Micheál Martin has welcomed the outcome of the EU-UK summit in London, calling it a "landmark moment". The EU and UK have reached an agreement to reset relations, which the British Prime Minister has claimed will add nearly £9 billion (€10.6bn) to the UK economy by 2040. As part of the agreement, there will be a new sanitary and phytosanitary (SPS) deal on plant and animal products, which will not be time-limited. According to the UK government, "some routine checks on animal and plant products will be removed completely", which will help reduce trade barriers between Northern Ireland and Britain. UK Prime Minister Keir Starmer is hosting European Union chiefs for a landmark summit designed to usher in a closer relationship between Britain and the bloc, five years after Brexit. Mr Martin said the outcomes from the talks deliver on the "shared commitment to reset relations between the EU and the UK". "The UK is an important like-minded partner for the EU, and for Ireland, sharing our values and commitment to multilateralism and the international rules-based system," he said. "It is essential that we work in partnership to address global challenges. "I therefore welcome the conclusion of the defence and security partnership between the EU and the UK at today's summit." He said the agreements "mark a new beginning in a positive and cooperative relationship between the EU and the UK which is essential for the pursuit of many areas of Ireland's national interest and is an important factor for stability in Northern Ireland". The UK's decision to extend fishing rights for the EU fishing sector by another 12 years, "also provides certainty to Ireland's fishermen and women", said Mr Martin. "Overall, a closer working relationship between the European Union and United Kingdom is good for Ireland, and for everyone," he said. Mr Starmer described the deal as a "win-win". "This deal is good for both sides," Mr Starmer told reporters at a joint press conference with EU chiefs Ursula von der Leyen and Antonio Costa following their summit. Meanwhile, Tánaiste Simon Harris said the summit "marks the beginning of an ambitious and productive new phase of EU-UK cooperation". Mr Harris said both parties commitment to enhancing their relationship will deliver "real benefits for people in the UK and the EU alike". The Tánaiste will chair the fifth meeting of the Government Trade Forum this afternoon which will consider the outcome of the EU-UK Summit. Mr Harris will update the forum on trade policy developments, including at the EU-US level, and on his meetings with European Trade Commissioner Maroš Šefčovič and EU trade ministers in Brussels last week. The new list of potential countermeasures in response to recent US tariff decisions will also be discussed.
