Tánaiste and Minister for Foreign Affairs and Trade Simon Harris has welcomed the newly published EU-US framework trade agreement, stating that it brings much-needed clarity by setting a single, comprehensive 15% tariff on goods exported from the EU, reports RTE.
He further noted that there is now confirmation that this tariff will also apply to key sectors such as pharmaceuticals and semiconductors.
“This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors,” he added, reports RTE.
Mr Harris also highlighted that the Joint Statement includes “zero for zero” tariff carve-outs for aircraft and related parts, and that additional exemptions will be determined for specific generic pharmaceuticals and chemicals.
“Importantly, the Joint Statement leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest,” he said, reports RTE.
In an announcement today, the US and the European Union confirmed they had formalized a framework trade agreement that imposes a 15% US tariff on the majority of EU imports, including vehicles, pharmaceuticals, semiconductors, and timber.
Outlined in a joint statement spanning three and a half pages, the deal includes commitments such as the EU’s promise to eliminate tariffs on all US industrial products and to grant preferential market access for various US seafood and agricultural exports, reports RTE.
The US government will begin lowering the current 27.5% tariffs on cars and auto parts — a major cost for European manufacturers — once the EU enacts the necessary legislation to implement its pledged tariff cuts on American goods.
US President Donald Trump and European Commission President Ursula von der Leyen revealed the agreement on July 27 during a meeting at Mr Trump’s luxury golf course in Turnberry, Scotland, following months of negotiations.
The two leaders met again this week as part of broader talks aimed at resolving the war in Ukraine. Both hailed the trade agreement as a major achievement. According to the joint statement, the framework may be broadened over time to include additional areas and to enhance mutual market access, reports RTE.
A senior US official, who spoke anonymously due to lack of authorization to comment publicly, stated that European carmakers might see reductions in US tariffs within “hopefully weeks.”
“As soon as they’re able to introduce that legislation – and I don’t mean pass it and fully implement it, but really introduce it – then we will be in a position to provide that relief. And I will say that both sides are very interested in moving quickly,” they said, reports RTE.
The official described the joint statement as “a play to hold each other accountable” to ensure both parties follow through on their commitments from last month.
“We are trying to sequence with the European Union to make sure that they feel sufficient pressure to obtain the mandate they need to begin the legislative process for reducing their tariffs, as they’ve promised,” the official said, reports RTE.
“We’re confident that they’ll do that. It’s just good for all parties to make sure that everyone’s on the same page and taking actions around the same time,” reports RTE.
According to the statement, the US will implement tariff relief on autos and parts on the first day of the month when the EU introduces its legislation, offering the possibility of retroactive benefits for automakers. However, it remains uncertain when Brussels will begin the legislative steps.
The joint statement also clarified that, from September 1, the US will apply only Most Favored Nation tariffs on EU exports such as aircraft and parts, generic drugs and ingredients, chemical inputs, and scarce natural materials like cork.
It reiterated the EU’s goal to purchase \$750 billion worth of US liquefied natural gas (LNG), oil, and nuclear energy products, along with an additional \$40 billion in US-manufactured AI chips, reports RTE.
Moreover, the EU plans to inject an added \$600 billion in investments into strategic US sectors through to 2028.
The two parties pledged to tackle “unjustified digital trade barriers,” and the EU has agreed to refrain from introducing network usage charges.
They also committed to negotiating rules of origin to ensure the benefits of the agreement predominantly favor both sides, reports RTE.
Additionally, both sides will explore joint efforts to shield their steel and aluminum industries from overcapacity, while maintaining secure bilateral supply chains, including through tariff quotas.
In a statement issued today, Simon Harris noted that while the deal finally offers stability, the Government remains very aware of the burden of increased tariffs and the persistent challenges faced by many Irish exporters throughout this year.
“In that regard, we also must continue to control what we can control and continue to make our country, and our European Union, as competitive as possible, as good a location as possible to invest in and create jobs. We must also look for other opportunities to diversify markets for Irish business. While we want to continue to do business with the US and indeed want to grow business. It is important that we take every opportunity to identify new markets. On Monday, we will publish Ireland’s new Market Diversification Action Plan,” the Tánaiste added, reports RTE.
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