Ireland’s premier and deputy premier have welcomed clarity on the EU-US trade deal, which sees the US commit to capping tariffs on pharma goods at 15%.
Taoiseach Micheal Martin said the trade agreement represented a “significant win” for the EU while Tanaiste Simon Harris said it offered an “important shield” for Irish exporters.
The EU struck a trade deal with the US on July 27, five days before Mr Trump said a 30% tariff would kick in for the bloc.
The deal sees 15% tariffs on most EU goods including cars, semiconductors and pharmaceuticals entering the US.
There are “zero for zero” tariffs on a number of products including aircrafts and aircraft parts, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars over three years.
In the aftermath of the deal, it was not clear whether 15% would remain the rate for the pharma sector or be increased.
The EU-US statement published on Thursday said that as of September 1, the US will apply a maximum tariff rate of 15% on generic pharmaceuticals, their ingredients and chemical precursors.
“The United States intends to promptly ensure that the tariff rate, comprised of the MFN (Most Favored Nation) tariff and the tariff imposed pursuant to Section 232 of the Trade Expansion Act of 1962, applied to originating goods of the European Union subject to Section 232 actions on pharmaceuticals, semiconductors, and lumber does not exceed 15%.”
Mr Harris, Ireland’s deputy premier and Minister for Foreign Affairs and Trade, welcomed the assurances for the pharmaceutical and semiconductor sectors.
“We welcome clarity that the deal includes a single, all-inclusive 15% tariff on EU goods,” Mr Harris said.
“We also now have assurance that this rate will extend to pharmaceuticals and semiconductors.
“This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors.”
Mr Harris said this offered a “first step” to a more “comprehensive and formal agreement with the US in the future”.
“Our intention now is to see what other carve outs can be made in areas of interest for Irish exporters.”
Irish premier Micheal Martin said the statement brought “greater clarity and certainty” to what the EU-US agreement would mean in practice.
“This is especially important for enterprises that either import from or export to the US,” he said.
“Given the scale of the pharmaceutical and semiconductor sectors in Ireland, it is important that the Joint Statement confirms that 15% is a ceiling that will apply to EU exports in these areas in all circumstances, including when the current US Section 232 investigations are concluded.
“While I have been clear all along that I do not support tariffs, this is a significant win for the EU.
“Given the significance of the airline sector to Ireland, a specific carve-out for aircraft and aircraft parts is also welcome.
“There are areas where further work remains to be done, including a potential carve-out for med-tech products and spirits.
“I hope this will be advanced as quickly as possible. We will continue to advocate for these sectors given their significant importance to our domestic economy.”
Paul Sweetman, chief executive of the American Chamber of Commerce Ireland, welcomed the joint statement as providing “greater clarity to business on the future of the transatlantic trading partnership, worth over four billion dollars daily”.
“The framework brings more certainty and allows for further work to grow our mutually beneficial economic relationship,” he said.
“In supporting the US-Ireland and US-EU trading relationships into the future, we must also focus on enhancing competitiveness.
“Now is the time to make smart policy and investment decisions to deliver critical infrastructure projects, meet future skills needs, bolster our RD&I ecosystem, and secure Ireland’s position as a digital regulatory hub.
“AmCham will continue to work closely with the Irish Government, the US administration and our EU and US partners in growing investment on both sides of the Atlantic.”
