Taoiseach ‘hopeful' of EU-US deal as Trump pushes back tariffs deadline but hits Japan and South Korea with 25pc rate

Irish Independent

5 days ago

Micheál Martin said both sides continue to negotiate the "fine detail" of future arrangements.
It comes before a looming Wednesday deadline to make a new deal with the Trump administration, which piled pressure on trading partners by threatening dramatically increased tariffs from the existing 10pc rate.
Speaking to the media after a phone call with the European Commission president, Mr Martin said Ursula von der Leyen outlined to him the "most up to date situation".
Mr Martin said: "We remain hopeful that the US and the European Union can agree an outline agreement or framework principle agreement this week.
"There's still a number of issues to negotiated, nothing has been rejected, definitively.
"But what it does illustrate, though, that even if a framework agreement is arrived at, there would be a lot of negotiations subsequently."
"So therefore, whilst it would create some degree of clarity in terms of where we are in the short term, there would still be a number of issues outstanding in respect of that trade issue between the European Union and the United States and indeed between other countries."
Mr Martin said he supported the commission's position that an agreement should be reached to provide certainty to consumers, businesses and industry.
Asked if he expected a 10pc baseline tariff to remain in place, the Taoiseach said: "There are certain realities that probably will emerge from this that will have impact - and are having impact - on a number of sectors.
"But at least it gives us some sense of the landscape that we have to deal with."
The EU is holding firm to a goal of doing a trade deal with US president Donald Trump by Wednesday, despite Washington's last-minute decision to postpone a deadline to strike a deal on universal tariffs until August.
'We're working towards July 9 as the point where we want to have an agreement in principle at a minimum with the U.S.,' Olof Gill, the Commission's trade spokesperson, told reporters today.
The Trump administration said yesterday that it would push back a deadline for the return of its sweeping tariffs to August 1. Tariffs would then revert to their April 2 rates for countries that fail to nail down new US trade deals, Treasury Secretary Scott Bessent said.
Tánaiste and Trade minister Simon Harris said: 'My understanding is that we can now expect an extension of the current status quo until August 1,' but warned of some tariffs ahead.
It would give further time for the EU and the US to reach an agreement in principle 'on a mutually beneficial agreement that works for both sides,' he said.
But the Tánaiste added that it remains the position of the EU and the Government that 'we would like to conclude discussions on a trade agreement before' the new deadline.
'I remain cautiously optimistic about reaching agreement in principle on a Framework Agreement,' Mr Harris said.
'I want to be clear that it is likely there will be some form of tariffs going forward.
'But their imposition, even at a lower rate, is bad for consumers, jobs, economic growth and investment.'
The Fine Gael leader said he had been saying for some time that the prolonged uncertainty was also bad for economic confidence. Irish businesses seeking clarity on the trading environment in which they operate.
'We have consistently called for zero-for-zero tariffs in as many areas as possible and I know the EU has advocated this course of action,' Mr Harris said.
'Uncertainty continues around the outcomes, including on Pharma. This is obviously an area of significant concern to Ireland.
'However, my hope is that in the coming days and weeks both sides can work intensively and constructively to bring about an agreement.'
Mr Trump said on Monday the US would impose a 25pc tariff on imports from Japan and South Korea beginning on August 1 as he unveiled the first two of an expected 12 letters to trading partners outlining the new levies they face.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25pc that we charge," Mr Trump said in letters to the leaders of the two Asian countries, which he posted on his Truth Social platform.
Later, he also announced the US will impose 25pc tariffs on Malaysia and Kazakhstan, 30pc on South Africa and 40pc on Laos and Myanmar.
The European Union will not be receiving a letter setting out higher tariffs, EU sources said on Monday.
US stocks fell in response, the latest market upset since Trump unleashed a global trade war on his return to office in January.