The European Commission has reaffirmed its commitment to securing a negotiated solution in ongoing trade discussions with the United States, reports RTE.
This follows plans for EU Trade Commissioner Maros Sefcovic to speak later today with US Commerce Secretary Howard Lutnick, as Brussels aims to reach an agreement by August 1 to prevent significant tariffs from being imposed.
“While our priority is negotiations, we continue in parallel to prepare for all outcomes including potential additional countermeasures,” the European Commission said in a statement, reports RTE.
“The EU’s primary focus is on achieving a negotiated outcome with the US. Intensive technical and political level contact is ongoing,” said European Commission trade spokesman Olof Gill.
15% tariff from US would be a ‘big challenge’ – Burke
Minister for Enterprise, Tourism and Employment Peter Burke stated that a 15% tariff imposed by the US would be challenging, though not comparable to events like the banking crisis or the collapse of Lehman Brothers, reports RTE.
Speaking on RTÉ’s Today with Philip Boucher Hayes, he said: “We really would have to try or best in so far as possible to protect capital expenditure.
“But at 15% if I was to visualise it for your listeners, you are talking about between one and a half percent of a reduction in GDP. You’re talking about potentially around 35,000 jobs less created in the economy, reports RTE.
Minister Burke also mentioned that he presented a trade diversification strategy to Cabinet, calling it “key to ensure that we are diversifying, but also we are very clear that the US is going to be a very important market into the future”.
In other developments, US President Donald Trump said he plans to use import restrictions to pressure foreign manufacturers into cutting drug prices, warning pharmaceutical companies of significant consequences if they fail to comply, reports RTE.
While speaking at the White House during an event attended by Republican lawmakers, Mr Trump promised action to lower consumer costs for prescription medications.
The United States represents the largest market by revenue for major pharmaceutical firms, with Europe and the US sharing deeply integrated supply chains in medicine. The pharmaceutical sector supports around 45,000 jobs in Ireland, reports RTE.
Ireland’s total exports amounted to €223.8 billion last year, with about a third headed to the US.
Of the €72.6 billion worth of US imports from Ireland, roughly €58 billion came from pharmaceutical and chemical exports.
Pharma firms have repeatedly voiced worries over the possible imposition of tariffs and their implications for European investments, reports RTE.
In April, a group of pharmaceutical companies addressed a letter to EU Commission President Ursula von der Leyen, warning that Europe could miss out on €100 billion in new investments if regulatory and pricing approaches are not reconsidered.
The letter was endorsed by about 30 CEOs from leading global pharmaceutical firms, reports RTE.
Trump announces ‘massive’ Japan trade deal including 15% tariff
Earlier, Mr Trump announced what he called a “massive” trade deal with Japan, which included reducing a planned 25% tariff to 15% just ahead of the August 1 deadline.
Mr Trump has threatened to impose punitive tariffs on several nations unless they strike trade agreements with the US by next month, reports RTE.
So far, deals have only been finalized with Japan, Britain, Vietnam, the Philippines, and Indonesia, while discussions are ongoing with others.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Mr Trump said on his Truth Social platform, reports RTE.
Mr Trump said that under the deal, “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits.”
He did not elaborate on the unusual investment arrangement but stated the agreement “will create Hundreds of Thousands of Jobs,” reports RTE.
Japanese imports into the US were already subject to a 10% tariff, which was set to rise to 25% on August 1 if no agreement had been reached.
Japanese automotive exports—representing 8% of Japan’s workforce—already faced a 25% tariff, with steel and aluminum exports taxed at 50%, reports RTE.
Japanese Prime Minister Shigeru Ishiba confirmed in Tokyo that the car tariff has now been cut to 15%.
“We are the first (country) in the world to reduce tariffs on automobiles and auto parts, with no limits on volume,” he told reporters, reports RTE.
“We think it is a great achievement that we were able to get the largest cut (in tariffs) among countries which have trade surpluses with the US,” he said, reports RTE.
Exports of Japanese cars to the US dropped 26.7% in June, fueling concerns of a potential technical recession for Japan.
Last year, automobiles made up roughly 28% of Japan’s ¥21.3 trillion ($142 billion) worth of exports to the United States.
To Mr Trump’s frustration, American-made vehicles perform poorly in Japan, with only a few hundred units sold annually from companies like General Motors, in contrast to the millions of Toyotas purchased by US consumers, reports RTE.
The US president also pushed Japan to boost imports of rice—whose prices have climbed recently—as well as US oil and gas.
However, Mr Trump said Japan agreed to “open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things,” reports RTE.
Rice imports are a delicate matter in Japan, and Mr Ishiba’s administration—still reeling from a recent upper house election loss—had previously ruled out making any concessions.
Mr Ishiba emphasized that the agreement does not compromise Japan’s farming sector, reports RTE.
He also dismissed reports that he would step down, denying media claims and a source’s assertion that he planned to resign following the election setback.
Tell us your thoughts in the Facebook post and share this with your friends.
