Government and EU ready to support businesses impacted by Trump tariffs but 'not there yet', says Harris

Tánaiste Simon Harris was speaking in Luxembourg, where he was attending a meeting of the EU’s trade ministers to discuss the response to a 20% tariff rate on all exports to the United States

Tánaiste Simon Harris aid it was becoming 'abundantly clear' tariffs were bad for the US, EU and Irish economies amid a global stock market plunge.

The Government and European Union is ready to support businesses impacted by US tariffs but Ireland is not “at that moment yet”, Tánaiste Simon Harris has said.

Speaking at the conclusion of a meeting of European foreign ministers, Mr Harris said it was most important that the EU works to mitigate the situation through negotiations with the United States.

“Under my own contribution today at the meeting, I did make the point that, at a European level, we have to consider how we support European businesses,” Mr Harris said.

“From my perspective, how do we support Irish businesses through this difficult time and this will ultimately have to be part of the European response, but we’re not at that moment yet.” 

Mr Harris said the overwhelming exports from Ireland to the US were from the pharmaceutical industry, which have not yet been hit with tariffs.

According to the Oireachtas’s parliamentary budget office, medicinal and pharmaceutical products make up a total of 61% of Ireland’s total exports to the US.

The Tánaiste said there is currently an EU team “on standby” to travel to Washington and engage with the US and reach a deal to lessen tariffs.

Meanwhile, European trade commissioner Maros Sefcovic said that the trading relationship with the United States was in a “tough spot” at present, citing the €380bn worth of general tariffs on EU exports.

Mr Sefcovic said the EU-US trading relationship needed a “fresh look” and that cooperation in areas like developing semiconductors or securing critical minerals, there could be a “transatlantic marketplace” which benefits both sides.

He cited European Commission president Ursula von der Leyen’s offer to provide the US with a “zero-for-zero” tariff trading relationship on all industrial goods.

While Mr Sefcovic said the EU is prepared to negotiate with the US on trade, the bloc will “not wait endlessly” and is prepared to introduce countermeasures.

The first of these countermeasures are due to be announced later today, in response to President Donald Trump’s 25% tariff on all steel and aluminium exports to the US.

If agreed, the first phase of these countermeasures will kick in on April 15, while a second round will be effective from 15 May.

The commissioner added other measures will also be taken by the EU, including accelerating trade negotiations with countries including India, Thailand and the Gulf states.

Questioned about the Mercosur trade deal, the Tánaiste said Ireland retails “significant reservations” about the free trade agreement due to the possible impact on farmers.

However, Mr Harris said there are “many other free trade potentials”, citing a meeting he held with the Indian foreign minister.

Mr Harris confirmed he would bring forward proposals later this month on the ratification of CETA – the EU-Canada free trade deal – which had been blocked by the courts in Ireland.

It comes after a meeting of EU foreign ministers in Luxembourg earlier today, where it was agreed that the bloc preferred to find a mutually acceptable solution to resolve the trade dispute with the US.

However, ministers said that all options remain on the table to respond to the US tariffs.