The European Union and the United States could reach a framework trade deal this weekend, ending months of uncertainty for European industry, EU officials and diplomats said on Friday.
The deal would likely include a basic 15% tariff on all EU goods imported into the United States and possibly a 50% tariff on European steel and aluminum, officials and diplomats said.
US President Donald Trump on Friday said the chances of reaching a trade agreement between the United States and the European Union were 50/50, or even lower, adding that Brussels was “very interested in getting a deal done.”
“I would say the chances of signing an agreement with the EU are 50/50, maybe even less, but still 50/50,” he added.
Tánaiste Simon Harris said the EU was preparing for all eventualities as the bloc agreed €93bn in retaliatory tariffs against the United States.
Officials are hopeful of reaching an agreement to impose a 10-15% tariff on Irish goods destined for America after Japan struck a similar deal.
The government said agri-food products such as molasses, thoroughbreds and sugar were excluded from the retaliatory tariffs. If the tariffs were to be imposed, Ireland would benefit by €33 million.
Harris believes that an agreement with the US is still the best option, but countermeasures are already in place.
“It shows America that we are committed to a deal, but it also means we are preparing for all possible scenarios,” he said.
“You also need to cooperate with us so that the United States can do business effectively with Europe.
“So let's go back to the negotiations, let's make a deal, but let Europe continue to prepare for any possible developments.”
Seamus Coffey of the Irish Fiscal Advisory Council believes that even a 15 per cent tariff on pharmaceuticals would have a significant impact.
“With this additional uncertainty, they may consider changing their supply chain and increasing production in other areas,” he said.
“They can do it fairly quickly, and even Donald Trump has acknowledged this when he said he would give drug companies up to two years to make changes.
“But if that 15 per cent is introduced at the beginning of August, it will have a significant impact on pharmaceutical exports from Ireland.”
Sourse: breakingnews.ie
