Dairy Industry Ireland (DII) has said that a new EU-US trade deal provides a "degree of stability" and avoids the escalation of a tariff war between two key trading blocs.

DII, which is affiliated to Ibec, represents primary and secondary processors including the specialised nutrition industry.

The agreement reached by US President Donald Trump and European Commission President Ursula von der Leyen yesterday (Sunday, July 27) will see a baseline tariff applied of 15% applied to EU goods entering the US.

The announcement followed months of negotiations between the two sides. President Trump had threatened 30% tariffs being apply to EU goods from August 1 if a deal was not struck.

Conor Mulvihill, director of DII, noted that many details are still to be finalised in the new trade deal.

“For our key dairy sector, which exports over 90% of its output, all tariffs are regrettable.

"While the simplification of the new tariff structure, as set out in the deal, will make it easier for the sector to manage, we remain concerned about the broader implications of any tariff border on the island of Ireland.

"The dairy industry operates on an all island basis, with integrated supply chains and cross border trade in raw milk, ingredients, and finished products.

"Any divergence in tariff treatment between Northern Ireland and the Republic of Ireland could introduce complexity, cost, and uncertainty for processors and farmers alike," he said.

The group also noted the reference to a potential zero-for-zero tariff category for certain agricultural products.

"Dairy Industry Ireland encourages the government and EU institutions to seek clarity on whether Irish dairy products could be included in this list, which would offer further opportunities for growth in the US market," Mulvihill said.