EU member states back counter tariffs against US
EU member states have today (Wednesday, April 9) voted in favour of the European Commission's proposal to introduce trade countermeasures against the US as the Taoiseach also warned that tariffs pose a "huge challenge" to Irish exporters.
The commission’s proposal had initially been made in response to a decision back in March by the US to impose tariffs on imports of steel and aluminium from the EU.
According to a statement from the commission, the EU considers US tariffs "unjustified and damaging, causing economic harm to both sides, as well as the global economy".
"The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.
"Today’s vote of approval by member states means that – once the commission’s internal procedures are concluded, and the implementing act published – countermeasures will enter into force".
This is widely viewed as simply the first act in what is likely to become a long-running drama on trade tariffs between the US and the EU.
Next up will be the second act in response to President Donald Trump's "reciprocal tariffs" including the 20% levy on EU imports to the US which could be unveiled as early as next week.
According to the European Commission, "duties will start being collected as of April 15".
"These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome," it stated.
Meanwhile Taoiseach Micheál Martin told the Dáil today that Ireland needs to "adjust to a different situation" following what now appears to be a trade war waiting in the wings.
"The new policy approach in the United States is one in which the protection of national markets and the raising of protective barriers plays a central part.
"Ireland rightly advocates for an ambitious world trade agenda. We believe trade not only brings economic benefits, it helps lift people and countries out of poverty, and it contributes to a more stable and predictable world," the Taoiseach said.
He also starkly warned that new US 20% blanket tariff on most goods "could potentially have a significant effect on Irish investment and the wider economy".
The Taoiseach said: "It represents a huge challenge to Irish exporters to the US across all sectors.
"We are already hearing from some who are seeing their orders from the US slowing or even drying up entirely, putting valuable and skilled jobs at risk.
"And there may be more to come. We have yet to see the approach the US will take on pharmaceuticals, semi-conductors and other sectors excluded from the so-called reciprocal tariffs".
He also detailed in the Dáil that the Irish government has been in ongoing contact with the European Commission and has made "Irish sensitivities clear" about counter tariffs against the US.
"I discussed these issues directly with President von der Leyen, raising our concerns on the potential inclusion of bourbon and dairy on the proposed lists of EU counter measures.
"The publication of the final lists will be for the commission, but I am hopeful that the concerns of Ireland will be taken into account," the Taoiseach said.
He told TDs that the EU is continuing to "reflect on and prepare counter measures" in relation to the tariffs announced by the US president on April 2.
But the Taoiseach underlined that the EU is also prioritising negotiation and dialogue with the US.
"Should negotiations fail, it will be important to consider further counter measures by the EU that protects our businesses and our citizens," he said.
