Taoiseach welcomes 'clarity' of deal that will protect jobs
Irish exports to the US face a 15% tariff after the figure was agreed between President Donald Trump and EU Commission President Ursula von der Leyen at an EU/US Summit at his golf course in Turnberry, Scotland, yesterday, writes Ken Murray.
The US president said following the agreed deal that it was the “biggest in the world”.
“It’s great that we made a deal instead of playing games,” Mr Trump said.
Taoiseach Micheál Martin welcomed the deal for bringing “clarity”, and said it would likely protect jobs in Ireland.
However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is half the threatened 30% rate.
Earlier, Mr Trump said pharmaceuticals would not be part of the deal struck yesterday, adding that pharmaceuticals had to be made within the US.
He said the EU would make drugs for the US, but America would also have to produce its own.
Trump said: “Pharmaceuticals have to be made within the United States.”
He said they were “very special” and America could not be in a position of relying on other countries for its medicines.
The trade deal ends months of uncertainty for EU companies.
The US president is aiming to ensure that the new tariff regime will formally commence next Friday, August 1.
The Taoiseach said: “The agreement achieved this afternoon in Scotland brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world.
“That is good for businesses, investors and consumers. It will help protect many jobs in Ireland.”
However the Government would have to look at the finer aspects of the deal and determine if there were negative consequences for the Irish economy, he said.
Mr Martin added that the agreed charge of 15% is likely to affect trade between Ireland and the US but added that at least a definite figure has been arrived at.
“It does mean that there will now be higher tariffs than there have been and this will have an impact on trade between the EU and the US, making it more expensive and more challenging.
“However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy.”
Tánaiste and Minister for Foreign Affairs and Trade Simon Harris said: “A deal provides a measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world.
“Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than €1trillion.
“I have always stressed that tariffs are damaging and will have a negative impact on companies exporting to the US.
“While Ireland regrets that the baseline tariff of 15% is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment.
“President von der Leyen described this as 15% tariffs across the board, all-inclusive.”
Mr Harris said the deal would be assessed in the days and weeks ahead.
“There is still a lot of detail on the agreement which will need to be brought forward including in relation to pharma, aviation and other sectors.
“Over the coming days, we will be examining what has been agreed and the full implications for Irish business and the economy,” he said.
In advance of the Turnberry talks, Ireland’s EU Commissioner Michael McGrath had said the talks involved tough negotiations.
Mr McGrath, who is responsible for consumer protection, yesterday described the talks as “a live negotiation”, and said: “We are hoping for a conclusion and a good outcome, but we also have to be prepared, other outcomes are possible”.
However, Sinn Féin warned that a new tariff regime could negatively affect Irish businesses. Foreign Affairs spokesman Donnchadh Ó Laoghaire said a “great deal more” should be done to “protect the economy and Irish jobs”.
He said: “The Irish Government needs to be pursuing insurance in terms of the key industries that are at stake.”
Speaking after the Turnberry deal was concluded, Ms von der Leyen said: “It was heavy lifting we had to do.
“But many thanks also for the talks we had many times on the way to our goal — but now we made it.”
Trump said the EU agreed to purchase $750bn of energy as part of the deal.
It will also agree to invest $600bn more than planned in the US in military equipment and in opening countries to trade at zero tariff.
President of the European Commission Ursula von der Leyen shakes hands with U.S. President Donald Trump. (Photo by Andrew Harnik/Getty Images)
The tariff rate applying to imports from the EU would be 15%, with the same rate for cars, which was a key demand of the German car industry.
However, Trump said steel and aluminium exports from the EU would continue to face 50% tariffs.
The talks followed a two-week standoff triggered by Trump, who in a letter to Von der Leyen, threatened to push up tariffs on most EU goods to 30% if no deal were done by August 1.
Trump also told reporters he intends to visit his golf resort at Doonbeg, Co. Clare, "soon".
