EU launches consultation on potential €95bn tariffs on US goods if trade deal falters
The European Commission has today launched a "public consultation" on a list of US imports which could become subject to EU countermeasures if ongoing EU-US negotiations do not result in "a mutually beneficial outcome and the removal of the US tariffs."
The €95bn list does not broadly include pharmaceuticals but does cover a broad range of industrial and agricultural products, including aircraft, which could be damaging to Ryanair, which has ordered a large number of Boeing planes.
The list also includes bourbon whiskey, wine, cider, cars, bicycles, boats, smartphones, cattle, soy, olives, and a very limited number of pharmaceuticals.
The Commission is also consulting on possible restrictions on certain EU exports of steel scrap and chemical products to the US, worth €4.4bn.
A European Commission statement said: "Since the US imposed its unjustified and harmful tariffs, the EU has prioritised finding a mutually beneficial and balanced solution through negotiations, including within the framework of the 90-day partial suspension of tariffs announced by the US. These negotiations are ongoing both at the political and technical level. The EU continues to prepare potential countermeasures to defend its consumers and industry, in parallel with the negotiations and in case these fail to deliver a satisfactory outcome. While the public consultation is a necessary step in this process, it does not automatically result in the adoption of countermeasures.
"In parallel, the EU will also launch a WTO dispute against the US on its universal so-called 'reciprocal' tariffs and tariffs on cars and car parts, by formally lodging a request for consultations. It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules. The EU's objective is thus to reaffirm that internationally agreed rules matter, and that these cannot be unilaterally disregarded by any WTO member, including the US."
Commission President Ursula von der Leyen, who is meeting Taoiseach Micheál Martin today, said:
'Tariffs are already having a negative impact on the global economy. The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.'
EU states will now have four weeks to prepare a response.
In a statement, Tánaiste Simon Harris said that the Government "will be analysing the list over the coming days and is committed to engaging with stakeholders, including through the Government Trade Forum".
Mr Harris added:
'The Government supported the suspension of the EU's previous package of countermeasures in relation to steel and aluminium. This has helped create important space for negotiations.
'These negotiations remain the main focus for both the EU and Ireland. The Commission is fully engaged in discussions with the US. A negotiated solution remains very clearly the goal and the preferred outcome. I strongly support this position. This is also the message I have been delivering in all my bilateral contacts with both the US and EU partners.
'At the same time, I understand the need for the EU to undertake further internal preparations in case negotiations are unsuccessful. This is a sensible and measured approach. It is really important to stress that these measures will not be implemented immediately. There will be a four week consultation period during which the Commission will be seeking the views of Member States as well as of business and other stakeholders in Europe."
Speaking to RTÉ Radio, Public Expenditure Minister Jack Chambers said "the current tariffs are raising costs, are stifling growth, they're fuelling inflation, and they're heightening uncertainty".
He said that while Ireland will engage with sectors across the economy if there was an escalation "Ireland and every other EU member state will not be immune to the significant impacts of that".
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