Tánaiste Simon Harris has expressed optimism that a broad agreement in principle could be secured with the United States on tariffs ahead of the scheduled increase in rates on August 1, reports RTE.
According to Mr Harris, this preliminary agreement on trade and tariffs could help avert the planned tariff hikes mentioned in the high-stakes letter sent by President Trump to the European Commission President over the weekend.
The Tánaiste raised the issue of trade and tariffs during his meeting with newly appointed US Ambassador to Ireland, Ed Walsh, reports RTE.
Their talks, which took place at the Department of Foreign Affairs, were described as meaningful and constructive.
Mr Harris used the opportunity to reaffirm Ireland’s unwavering support for EU efforts to achieve a fair and mutually beneficial deal with the US on trade matters.
They also discussed concerns surrounding the pharmaceutical sector, reports RTE.
The Tánaiste stressed that the pharmaceutical industry continues to be a key concern for Ireland.
His comments follow those of European Commissioner Michael McGrath, who warned that if the US were to proceed with the proposed 30% tariffs, the EU’s reaction would be “firm, quick and robust.”
Speaking to RTÉ’s Morning Ireland, Mr McGrath — who oversees Democracy, Justice, the Rule of Law and Consumer Protection — said that talks with the US are still ongoing and in an intense phase, reports RTE.
He said there has been notable progress in the discussions as both sides work toward the updated August 1 deadline.
“We are particularly conscious of the need, insofar as possible, to remove uncertainty for businesses, because we know how damaging that is to international trade, to the prospects and the investment decisions of companies,” Mr McGrath said, reports RTE.
“Tariffs are ultimately paid for by somebody along the supply chain, most likely by the end consumer, and tariffs are also damaging to workers because they undermine the viability of companies,” he added, reports RTE.
Mr McGrath referred to the EU-US trade relationship as “mutually beneficial, supporting millions of jobs on both sides of the Atlantic”.
“We are negotiating very professionally, in good faith, and we are seeking the best possible deal for European companies because we recognise the importance of trade peace, the importance of stability and of certainty around terms of trade,” he said, reports RTE.
He noted that both the EU and the US should collaborate to address broader global trade issues and emphasized the EU’s readiness to deepen its engagement.
“But let me be clear, in the event of that not being successful and of the 30% tariff threat that was issued by President Trump coming to pass in two and a half weeks’ time, then the European response will be firm, it will be quick, and it will be robust,” he said, reports RTE.
Mr McGrath emphasized that the EU is preparing for various potential outcomes and stressed the importance of unity among EU member nations.
He said: “There are two different sets of packages of countermeasures that amount to the imposition of tariffs of exports from the US into the EU of over €90 billion; we do not wish for that to come to pass. We have a range of instruments and tools, the EU is in a strong position, and these negotiations are ongoing, and we’re doing everything we possibly can to get a good outcome for European companies,” reports RTE.
When asked about the possibility of easing rules on regulating big tech firms as part of the trade negotiations, Mr McGrath said such regulations are not part of the current talks.
“As an EU, we have to uphold our own autonomy and integrity and our right to set our own rules – those rules apply not just to big US tech companies, but also to Chinese companies and indeed to European companies as well,” he said, reports RTE.
Mr McGrath mentioned that dialogue with the US over trade terms has been ongoing.
“We have been generous in our offers, we have put forward proposals around zero for zero tariffs for a whole range of different goods,” he said, reports RTE.
The European Commissioner stated: “The EU is a world leader in international trade … the US relationship is critically important, we want to continue to invest in it and support it.
“But we were we are also getting our own house in order by ensuring we diversify our trade relationships, improve the competitiveness of the European economy and break down the remaining barriers in the single market,” reports RTE.
He called the effort “vital”, alongside the EU’s broader push to achieve “the best deal we can with the US.”
The EU’s trade spokesperson said that President Trump’s unexpected announcement regarding a potential threefold tariff increase does not “substantially change” the EU’s negotiation stance, reports RTE.
Olof Gill said progress in the talks prior to Trump’s statement gives the EU confidence that an agreement could be reached before August 1.
He also noted that the US administration had given the EU advance notice of the announcement.
“Different parties use different approaches in negotiations – carrot and stick is a standard approach, I suppose you could interpret this 30% threat as the American stick,” he said, reports RTE.
“We also have a stick on the EU side and that is the substantial rounds of countermeasures we’ve been preparing,” he added, reports RTE.
Mr Gill explained that these countermeasures are “on the table and they’re ready to be used if we need them.”
However, he clarified that the EU’s focus remains on continuing talks rather than escalating the situation.
“For the moment, we need to really focus on getting an agreed solution over the line,” he said, reports RTE.
Speaking on RTÉ’s Today with Claire Byrne, Mr Gill said: “We were very close to doing so last week, we believe such an agreement is within reach, and I think you’ll see that the alternative … is ready to go.
“We don’t need to do anything more in that sense, if and when we need to deploy it, we can deploy it, but we don’t feel we’re at that stage just yet,” reports RTE.
The EU spokesperson noted that retaliatory measures are not the EU’s primary focus and reiterated the bloc’s disapproval of tariff policies.
“We believe we should be doing everything we can to avoid this and that’s going to continue to be our approach,” he added, reports RTE.
Mr Gill emphasized that President Trump’s tariff threats should be taken seriously, saying, “the repercussions are perfectly serious”.
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