10th Apr 2025 10:09
(Alliance News) - Negotiation with the US is "likely", Ireland's deputy premier has said, after President Donald Trump announced a 90-day pause in certain sweeping tariffs.
Simon Harris met with US commerce secretary Howard Lutnick, a key critic of Irish policies within the Trump administration, in Washington DC on Wednesday.
The engagement came after Trump said he would be delaying tariffs on most nations for 90 days while raising his tax rate on Chinese imports to 125%.
The US had announced a 20% tariff for the EU, which would have applied to Ireland.
The precise details of the pause were not immediately clear, but the US treasury secretary has said Trump will keep a 10% baseline tariff on most countries.
On Thursday, Harris said he had debriefed EU trade commissioner Maros Sefcovic on his engagement with Lutnick.
In a statement, he said: "It has been my consistent position and the consistent position of the Irish government and the EU that we need to get into substantive, calm, measured dialogue with the US.
"It has always been our preference that would have happened before tariff announcements. Clearly that was not the position of the US.
"However, after my discussions yesterday, it is now clear to me that such engagement and negotiation is likely."
Harris, who is also Irish foreign affairs and trade minister, added: "I believe it needs to happen in a timely fashion. All sides need to engage in good faith because uncertainty and turmoil is not the way forward.
"The trading relationship between the EU and the US is worth EUR1.6 trillion per year. It's massively important in terms of jobs, growth and investment in Ireland, across the EU and in America."
On Wednesday, the EU had retaliated against earlier 25% tariffs on imported steel and aluminium imposed by Trump.
It approved countermeasures to come into effect in stages from April 15, reported to include orange juice and coffee as well as motorcycles and boats.
Bourbon whiskey is reported not to be included in the list despite previously being targeted by the EU.
Trump previously threatened a 200% tariff on EU drinks if bourbon was included, prompting significant concern for the Irish drinks sector.
EU Commission President Ursula von der Leyen had offered a zero-for-zero tariffs deal on industrial goods including cars but Trump has said that is not enough to satisfy US concerns.
The potential impact on the Irish pharmaceutical sector, which employs around 45,000 people, remains a particular cause of concern for Ireland's government.
Pharmaceuticals were exempt from the sweeping tariffs imposed on EU exports to the US earlier this month, but could be subject to further measures taken by the Trump administration.
The US trade secretary recently said US tech and pharmaceutical companies locating intellectual property in Ireland for tax reasons was "going to change".
In addition, Harris said the US administration is "still clear" that it intends to take action on pharmaceuticals, which would significantly impact Ireland.
However he said the 90-day pause allowed room for negotiation, adding that there was "at least an openness to considering" a discussion on pharmaceuticals on the US side.
Harris said he had told Lutnick, who had previously said it was a "nonsense" that Ireland runs a trade surplus against the US, that the negotiations on the tariff pause should include a discussion around pharmaceuticals, rather than new taxes being imposed on the sector while engagement is ongoing.
Total Irish exports were valued at EUR223.8 billion last year, with roughly one third going to the US.
Of the EUR72.6 billion in US imports from Ireland, approximately EUR58 billion relates to pharmaceuticals and chemicals leaving Ireland.
It had been projected this could halve if Trump had implemented a 20% tariff on the goods and the EU had responded in kind.
By Cillian Sherlock
Press Association: News
source: PA
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