Simon Harris warns of Irish job losses if US imposes 30% tariffs

A 30 per cent tariff on trade with the US would have “significant” impacts on the Irish economy including job losses, Ministers will be told on Tuesday.

Tánaiste Simon Harris, who is also the Minister for Foreign Affairs and Trade, will issue the warning at a Cabinet meeting, as the European Union tries to avoid an all-out trade war with the US.

US president Donald Trump upended negotiations over the weekend by demanding a deal by August 1st or face a 30 per cent tariff on goods coming to the US from the EU.

That scenario, according to EU trade chief Maros Sefcovic, would make it “almost impossible to continue” current transatlantic trade, which is worth €4.4 billion a day.

At Tuesday’s Cabinet meeting, Mr Harris is expected to tell Ministers that Ireland’s focus over the next two-and-a-half weeks is on negotiations to reach a deal to avoid the imposition of higher tariffs that could precipitate a full-blown trade war between the EU and US.

He will tell colleagues that this scenario would see a significant impact on the economy, including devastating job losses.

Mr Harris will warn that the possibility of the EU imposing a revised list of counter tariffs, amounting to €72 billion, against the US if talks fail would “cause pain on both sides”.

The coming weeks must, therefore, be used for a negotiated settlement to avoid such a scenario, Mr Harris will say.

The Tánaiste will also update Ministers on plans to engage with the pharmaceutical industry this week.

Speaking on Monday evening, Mr Harris said there was a need to “de-escalate the situation” through a framework deal that would provide certainty for businesses and protect jobs and investment.

The Minister for Foreign Affairs made the comments following a meeting with US ambassador to Ireland Ed Walsh.

Speaking at Government Buildings, Mr Harris said: “The message I relayed to the US ambassador is a consistent one and a very straightforward one: we in Ireland, we in Europe, want a deal.

“We want a trade deal that is good for Ireland, good for Europe, good for the United States of America, and I believe there is a clear landing zone in relation to that.”

Mr Harris said: “I believe there was a landing zone very nearly there last week, and it’s regrettable that that wasn’t arrived at.”

However, he said he remained confident that a deal can happen in the days ahead.

The European Commission is due to publish an expanded list of counter-tariffs that would be implemented if an agreement is not reached.

He said the “optimal position” would be to get to a deal where “we can rip up that list and never need to see it implemented”.

“A countermeasure list is an important step of saying to President Trump: ‘Hang on, we want a deal here, we want a way forward, but if there isn’t a deal Europe also has options at its disposal’.”

The Tánaiste said the Government will also analyse the list and engage with the Commission over any “areas of concern for Ireland” that arise.

Mr Harris’s discussion with Mr Walsh also touched on the issue of the pharmaceutical sector where there is an ongoing section 232 investigation being carried out by the US administration.

The Tánaiste said the pharma sector remains an area of significant concern for Ireland.

“Europe must remain calm, must remain united – our strength is in being united, 460 million of us – and must of course prepare for all scenarios.” – Additional reporting: Press Association