Tánaiste Simon Harris has stated that it “makes sense” for the European Union to examine the justification for suggested remedies to US tariffs, reports Breaking News.
An intensification of Europe’s tit-for-tat trade battle with President Donald Trump may have a significant impact on the Irish drinks industry, which is why the government views the potential of US tariffs on alcoholic drinks from the EU as a “very serious issue.”
On March 12th, US tariffs of 25% were implemented globally on all imports of steel and aluminium goods and derivatives, reports Breaking News.
The EU published its proposed countermeasures the same day, including the reinstatement of the April 1st suspended tariff measures and the introduction of new ones that would take effect later that month.
Motorbikes, yachts and bourbon whisky are among the US products that are impacted by the April 1st measures, reports Breaking News.
On April 2, the US government is anticipated to make more announcements.
The Irish drinks business is concerned after Mr. Trump personally threatened to impose a 200 percent tariff on imported alcoholic beverages from the EU.
“We can’t lose sight of first principles here, and first principles are that tariffs are bad news for consumers in Europe, Ireland, and the United States,” said Tánaiste Simon Harris, adding that the government is doing a “sector-by-sector” review of the possible effects of tariffs, reports Breaking News.
He added: “Ireland and the European Union wants to do business with the United States. In fact, we want to do more business with the United States. It seems at the moment, it is the preference of the US to go ahead on April 2 and to announce measures they intend to take, and only after that point, to begin to engage intensively on the way forward. I actually think it would be a much better use of time to start that engagement now,” reports Breaking News.
In order to address the bloc’s reaction, Mr. Harris, the Minister of Foreign Affairs and Trade, stated that he will start a series of calls with his EU counterparts.
“We need to be very careful as a country and as countries highlighting one item over another, because even if you make progress on one item, well then the focus just shifts to another,” Mr. Harris said when asked whether he would urge his counterparts to reevaluate the inclusion of US alcohol goods, reports Breaking News.
“What I don’t want to do is put any sector up in lights here. I want to continue to articulate the position that we need an agreement that doesn’t see significant tariffs being imposed on Irish products. But of course, I think it does make sense for the European Union to look at the list. I think the original plan was to kind of just renew the suspended list. I’m not sure that’s the most strategic approach. So while I don’t want to get into individual items, I do think it makes sense to look at the rationale for those items on that list back then and see if that rationale still applies today. So yes, we will have an opportunity to make that point today,” reports Breaking News.
Mr. Martin expressed “concern” that possible trade conflicts and tariffs are “dampening down investment” due to the uncertainty in the world economy.
He stated that he will talk about this during Thursday’s European Council meeting, reports Breaking News.
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