Tariff uncertainty 'costs businesses and puts workers’ jobs at risk', commissioner warns

Speaking in Cork on Monday as talks were set to take place between the EU and the US, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, said that what the EU wants from the talks is 'a comprehensive overall settlement in the terms of trade between the EU and the US'.

Uncertainty arising from the US’s policy announcements regarding the imposition of trading tariffs across the world could “cost businesses and put workers’ jobs at risk”, according to Ireland’s EU Commissioner.

Speaking in Cork on Monday as talks were set to take place between the EU and the US, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, said that what the EU wants from the talks is “a comprehensive overall settlement in the terms of trade between the EU and the US”. 

He added pharmaceuticals would be an important element, from Ireland’s perspective.

“The truth is we are in the early stages of this 90-day process and any negotiation is two-way by its nature," Mr McGrath said. 

"That means the US side will want to put items on the table but the EU will as well and our perspective is that we want an overall comprehensive settlement that puts to bed all the instability and uncertainty that has been caused by the imposition of tariffs and the various policy announcements over the last number of weeks. 

It is not good for anyone. It leads to disruption in trade. It will ultimately cost businesses and put workers’ jobs at risk and it is not good for consumers either because it results in higher prices.

He added: “In any negotiation process, you want to enter into it from a position of strength and that is why you need to have all options on the table but you need to have the clear objective from an EU perspective of a settled position when it comes to the terms of trade between the EU and the US.

"That is our goal, that is our objective, in these talks over the period ahead. All of this uncertainty and instability is not good for anyone.

"It is not good for the trading relationship and could cause great harm to both the US and the EU so, yes, we do need to keep options on the table, we do need to enter negotiations from a real position of strength and let’s see where those negotiations take us over the coming months.” 

His comments came ahead of a meeting later on Monday in Washington between EU trade commissioner Maroš Šefčovič and US commerce secretary Howard Lutnick and US trade officials.

In an unexpected move last Wednesday, the US president announced a 90-day suspension of higher rates of tariffs to allow time for officials to negotiate with countries who had sought to reduce the them.

As a result, the plan for a 20% tariff for countries in the EU bloc is currently suspended but a 10% rate is in place.