We may need 'product-by-product negotiations' after US-EU trade agreement, says Taoiseach

Micheál Martin also suggested that while no one is 'welcoming tariffs with open arms', the deal is better than an all-out trade war

Taoiseach Micheál Martin: 'I understand people criticising, but given the balance and the options here… I would appreciate the work of the commission in this regard and the avoidance of a trade war is preferable.'

There is still “much to be negotiated” in the aftermath of the tariff agreement between the US and the EU, Taoiseach Micheál Martin has warned. He stated that this could mean “product-by-product negotiations”.

Mr Martin also suggested that while no one is “welcoming tariffs with open arms”, the deal is better than an all-out trade war.

European Commission President Ursula von der Leyen and US President Donald Trump confirmed that a 15% tariff will apply on EU goods entering the US. The EU further agreed to buy $750bn (€647bn) worth of US energy and to invest $600bn in the US economy.

Ms von der Leyen stated that pharmaceuticals are included in the 15% tariff but admitted that any future decision would be “on a different sheet of paper”.

The Taoiseach said the agreement “avoids a trade conflict which would be very, very damaging”, arguing that it brings “stability and predictability”. However, he also contended that this is not the end of the road.

“There is much to be negotiated in the aftermath of this framework agreement — in some sectors, product-by-product negotiations,” he said.

What's your view on this issue?

You can tell us here

“We will continue to try and add to the agreement for the benefit of European workers, consumers, and patients.”

The agreement has come in for sharp criticism in some quarters. In France, prime minister Francois Bayrou said it was a “dark day” and stated that the EU had “resigned itself to submission”.

At home, Ibec CEO Danny McCoy accused the EU of “capitulation”.

When these statements were put to the Taoiseach, he stated that Ibec and other EU member states would not want a “trade war”. However, he added that “nobody is welcoming tariffs with open arms”.

“We've been consistent in saying that we don't agree with tariffs, we’d prefer if there weren't tariffs, but we have to deal with realities,” he said.

“I understand people criticising, but given the balance and the options here… I would appreciate the work of the commission in this regard and the avoidance of a trade war is preferable.”

Mr McCoy said that the deal was “clearly” the EU submitting to the US and predicted there would be “many twists and turns yet”.

He said:

The real prize here is certainty, but we don't know whether we've got certainty with Donald Trump.

“If we were certain it was 15%, we could end up coping quite well with this. We would redirect where our trade was going from.”

Elsewhere, former taoiseach Leo Varadkar stated the deal struck between the EU and the US was better than if there was “no deal at all”, adding, “that's only if it sticks”.

In a post on X, Mr Varadkar noted that a “good trade deal is one that increases trade flows and reduces prices for consumers”.

Mr Varadkar told the Irish Examiner that he believes Mr Trump will target pharmaceuticals further.

However, he admitted that he is “not overly concerned” about what it will mean for Irish finances.

“It’ll take time to have an impact, and we are well insulated with such a big surplus,” he said.

“We need to work on contingencies, in particular, selling our products to the rest of the world with which we have stable trading relationships, such as the EU, UK, Japan, South Korea, Latin America.”