Tánaiste Simon Harris told a trade forum that 10% US tariffs on Irish exports will likely be the “new normal,” though discussions are still ongoing to eliminate taxes entirely in certain critical sectors, reports RTE.
The gathering in Dublin is being held one week before US President Donald Trump is due to end a suspension on higher tariffs.
The Government’s forum includes representatives from State agencies, industry bodies, trade unions, and senior ministers, reports RTE.
Currently, most goods Ireland exports to the US face a 10% tariff.
However, there are major exceptions—namely the pharmaceutical and semiconductor sectors, reports RTE.
These exemptions were temporary, meant to hold while a broader US-EU trade deal was being negotiated, but they might now become long-term measures.
The EU is said to be in talks to keep tariffs off some industries, while accepting a 10% charge on other goods.
Today’s session also included an update on the new strategic plan for the semiconductor industry, reports RTE.
Minister for Finance Paschal Donohoe presented the forum with an economic analysis of how tariffs are impacting Ireland.
Participants also discussed how Irish companies could explore alternative markets, reports RTE.
Following the meeting, Mr Harris confirmed that EU Trade Commissioner Maroš Šefčovič was in Washington DC continuing talks with the Trump administration.
“The US believes in tariffs. Clearly 10% seems to be the baseline in any agreements they have reached so far,” he said, reports RTE.
He noted that the Irish Government was trying to increase the number of areas exempt from such duties.
Earlier, he stated he wanted to delay the introduction of new alcohol labeling rules to avoid creating further trade barriers for now.
Ahead of the discussions, the Tánaiste stressed that Ireland was aiming for a deal “that has zero-for-zero or as near as possible in as many areas as possible,” reports RTE.
“We cannot ignore the fact that every single day the trading relationship between the EU and the US is worth more than €4 billion,” Mr Harris said, reports RTE.
Minister for Finance Paschal Donohoe said the Irish economy is still expected to expand both this year and next.
However, he warned growth would likely be slower than it would have been without tariffs.
He also said the pace of new job creation would “moderate due to the challenging environment,” reports RTE.
The Irish Farmers Association has voiced its concerns about the possibility that 10% tariffs will remain on Irish food and beverage exports.
Its director general, Damian McDonald, described the outlook as “very concerning for the dairy and drinks sector,” reports RTE.
Danny McCoy, CEO of business group Ibec, said that a 10% tariff would be a “significant shunt” for Irish exporters.
He added that it is reasonable to expect this level of tariff to become standard for many industries, reports RTE.
Simon McKeever, who leads the Irish Exporters Association, said his group would propose a rebate system for Irish companies, similar to one in Canada that compensates firms affected by US tariffs.
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