World 'cannot afford' trade war, says Taoiseach who tells economic summit 'values matter'

It comes after the US president Donald Trump said that a 50% tariff on goods from the EU will be delayed

Micheál Martin said: 'Tariffs are not good for our economy, for the world economy and for our consumers.' Photo: Leah Farrell/© RollingNews.ie

The world "cannot afford" a trade war, Taoiseach Micheál Martin has said as Donald Trump's latest u-turn on tariffs was welcomed in Europe.

The announcement today from the US president that a 50% tariff on goods from the EU will be delayed follows contact with European Commission president Ursula von der Leyen as well as the discussions on Friday between Commissioner Maroš Šefčovič and his US counterparts.

In April, Mr Trump announced a 20% tariff on EU goods being sold into the US. He later reduced that to 10% until July 8 to allow for time for talks with Brussels on a potential agreement.

On Friday, Mr Trump claimed the talks were “going nowhere” and said he was recommending that the 50% tariff rate comes into effect on June 1.

The president also announced he would be imposing a 25% tariff on all Apple iPhones manufactured outside the US. Mr Trump also warned that tariffs were coming for other foreign manufactured smartphones.

Mr Trump later said that Ms von der Leyen "asked for an extension on the June 1 date, and she said she wants to get down to serious negotiation”, which he agreed to. However, the delay until July 9 is seen as a "very tight" deadline by some in government here.

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Speaking while in Kerry, Taoiseach Micheál Martin said that Ireland standing alone was not an option and it intended to continue to be "a strong proactive global participant".

In a world moving increasingly towards protectionism, Ireland would remain “steadfastly multilateral,” he also told the opening of the second global economic summit in Killarney.

Ireland would continue to play a global role and be a force of good progress and good values. “And values matter,” he added. 

Mr Martin said the European Union “and the world” cannot afford a trade war. “Tariffs are not good for our economy, for the world economy and for our consumers,” Mr Martin said.

The EU and US had “a significant and robust” trading arrangement and any changes would be serious for the world, he added. 

I do believe the US is anxious to get a deal on this that is sustainable too. 

EU Commissioner Michael McGrath, who was also in Killarney, said it was “crucial” every effort was made over the next six weeks to reach agreement. 

“The EU will leave no stone unturned,” he said.

Meanwhile, Tánaiste Simon Harris said that the contacts between the two sides were "at the highest political level" and "present the opportunity for negotiations to move forward".

"This is our priority. We want to see meaningful and substantive talks," Mr Harris said. 

"The EU-US economic relationship is an engine of growth for the entire world. There is no doubt that the circumstances are challenging at present but I am confident that we can find a way forward."

Mr Harris has written to US secretary for commerce Howard Lutnick following the latter’s instigation of two investigations examining whether the United States’ reliance on foreign imports in those sectors poses a risk to national security.