EU-US trade deal still uncertain as Harris remains ‘cautiously optimistic’

With days left before 30% tariffs hit Irish exports, EU and US officials scramble to finalise a framework agreement

On Thursday, EU members agreed to introduce €93bn worth of counter tariffs against the US if an agreement was not reached. 

Tánaiste Simon Harris said he is “cautiously optimistic” that a trade agreement will be reached between the EU and the US in the coming days.

Government sources confirmed fresh hopes that a trade framework agreement between the EU and the US could be reached before the weekend.

This comes ahead of the August 1 tariff deadline, which could see Irish and EU goods entering the US facing 30% tariffs.

The original deadline of July 9 was extended by three weeks after US president Donald Trump increased proposed tariffs from 20% to 30%.

Mr Harris said negotiations were at a “critical moment.”

"I remain cautiously optimistic that a deal can be reached on a joint agreement for a positive future EU-US trading relationship within the coming days,” he said.

"Over recent weeks, the EU has been engaged in intensive negotiations with the US to try and bring about an outcome that avoids unnecessary trade barriers.

"We have been calm and measured in our response and as we approach the deadline for the talks I will continue to engage with the European Commission and other member states.

"EU unity at this moment is critical as is reaching a deal that allows for the mutually beneficial trading relationship with the US to continue.

"As I have said already, it is now long past time to strike a deal."

Government sources told the Irish Examiner there is a strong expectation and belief that a deal could be agreed between the US and the EU in the coming days.

However, they also sounded a note of caution, noting a “flurry of activity” on Wednesday after several European news outlets reported that a deal was imminent—reports later denied by White House officials on Thursday.

There were also claims in early July that a framework agreement was ready to be signed, but that failed to materialise.

Speaking in Luxembourg, Taoiseach Micheál Martin told reporters he was “hopeful” a preliminary deal could be reached before the weekend.

However, according to the Irish Times, he also warned it would be “foolish” to predict when a final agreement between the US and the EU would be reached.

“We’re certain there will be detailed discussions afterwards in respect of line by line, in terms of many, many products,” he said.

"And so, this will continue notwithstanding a framework agreement, [which] hopefully will be signed off before the weekend is over,” he said.

“Part of the reason for the intensity of those negotiations is to try and tie up as much as we can.” 

The Taoiseach also said that intensive conversations are ongoing and that the European Union does not want a “retaliatory scenario.” 

On Thursday, EU member states agreed to introduce €93bn worth of counter-tariffs against the US if an agreement is not reached. The measures would take effect by August 7, but only if no deal is struck.

The package combines two previous tariff proposals — one in response to US tariffs on steel and aluminium, valued at €21bn, and a second compiled earlier this summer.