The imposition of further US tariffs through an alternative legal basis “cannot be ruled out”, the Tánaiste has said.
Simon Harris, nicknamed by some social media users as ‘Top Gun’, has issued a stern warning.
The warning was confirmed just hours later when US President Donald Trump announced a 10 per cent “global tariff” on top of existing measures, reports Breaking News.
This came after the US Supreme Court ruled on Friday that Mr Trump’s sweeping “reciprocal” global tariffs were unconstitutional.
The ruling, described as “ridiculous” by the president, only applied to tariffs announced last year under the International Emergency Economic Powers Act (IEEPA), reports Breaking News.
The European Commission has sought “clarity” on the decision, which could allow businesses to apply for refunds on tariffs already paid and review investments made under the policy.
By December, the US Treasury had collected more than €133 billion from the tariffs, and many companies are preparing to claim refunds for tariffs paid to date, reports Breaking News.
The Supreme Court decision does not affect tariffs introduced under other legal frameworks, such as “section 232” investigations examining the impact of imports on US national security.
These relate to several sectors of interest to Ireland, including pharmaceuticals, semiconductors, commercial aircraft, medical devices, robotics, drones, wind turbines, critical minerals, and timber, reports Breaking News.
There is concern that the potential financial consequences of the Supreme Court ruling could affect EU-US negotiations over steel and aluminium tariffs, as the US seeks to maintain leverage and control over its policy.
Following the ruling, Tánaiste Simon Harris said: “We are – as you would expect – monitoring the situation closely,
“Low tariffs are in everyone’s interests and, at a European level, we will continue to engage with our US counterparts in order to promote measures that work for all, reports Breaking News.
“Bilateral trade, investment and economic cooperation deliver enormous economic benefits, and we will always work towards that goal.
“We expect the US administration will issue a statement shortly on their response to the ruling, reports Breaking News.
“Of course, tariffs by some other means, for instance via some alternative legal basis, cannot be ruled out.”
Mr Trump later confirmed that all national security tariffs – under section 232 and section 301 – remain “in place, and in full force and effect”.
He added: “Today I will sign an order to impose a 10 per cent global tariff, under Section 122, over and above our normal tariffs already being charged”, reports Breaking News.
The new tariff uses a different legal mechanism than the one challenged in the Supreme Court ruling on the IEEPA.
Mr Trump said the administration was also launching other investigations, and claimed the Supreme Court ruling merely overruled aspects of the IEEPA while confirming that it could still be used to restrict trade with a foreign country, reports Breaking News.
Earlier, Foreign Affairs and Trade Minister Helen McEntee described the ruling as “a significant development in the wider global trading environment”.
She said: “Open, stable and predictable trade remains essential for economic growth, investment and jobs in Ireland,
“I remain in close contact with the European Commission on this issue. I understand they are engaging directly with the US administration to seek clarity on how they intend to respond, reports Breaking News.
“My department will continue to monitor developments closely and assess any potential implications for Irish trade, businesses and jobs.”
EU Commission deputy chief spokesman Olof Gill said the ruling was being analysed “carefully”, reports Breaking News.
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