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Irish Times
an hour ago
- Irish Times
EU halts retaliatory tariffs as Trump again raises spectre of higher tariffs on pharma
The EU on Tuesday said it would suspend its retaliatory tariffs on the United States even as the specifics of a trade deal reached last month, including lower tariffs on European cars, have yet to be signed off by Donald Trump . The US president last week signed an executive order that will implement as of Friday a 15 per cent tariff rate on most EU products, which European Commission President Ursula von der Leyen agreed to when the two leaders met in Scotland at the end of July. But Mr Trump again threatened on Tuesday to announce separate tariffs on semiconductor and pharmaceutical imports 'within the next week or so' and made particular mention of Ireland in doing so during an interview with CNBC 'We'll be putting a initially small tariff on pharmaceuticals, but in one year – one and a half years, maximum – it's going to go to 150 per cent and then it's going to go to 250 per cent because we want pharmaceuticals made in out country,' he said. READ MORE 'They [pharmaceutical companies] make a fortune with pharmaceuticals, and they make in China and Ireland and everything else. 'This is a, you know, this is a separate class than the 15 per cent tariffs on sort of everything. These are excluded classes, I like to call them, like steel, aluminium, made in our country,' Mr Trump said. 'We're going to be announcing on semiconductors and chips, which is a separate category,' the president continued. The bloc had readied higher levies on €93 billion worth of US exports, which were due to enter into force as of Thursday had trade talks failed. 'The suspension [of retaliatory tariffs] is a reflection of the fact that a political agreement has been reached,' said a senior EU official, noting that both sides were now implementing that deal. The official added that the retaliatory measures were now being 'put back into the freezer and we can always take it out if needed'. Washington and Brussels are still negotiating the text of a joint statement which was expected soon after Mr Trump and Ms von der Leyen shook hands in Scotland. Clarity is still lacking on when the US will lower its 27.5 per cent rate on European cars to 15 per cent – a key export sector for Germany – as well as the categories of products that will be traded at zero tariffs. 'We worked very hard to ensure we have that immediate tariff relief also for cars. We are working hard to see that in practice,' said the EU official. One aspect yet to be agreed is how to treat EU car parts that come from outside the bloc, particularly from China. The EU official said that 'there might be further ways to restrict content from certain non-market economies', adding that negotiations are ongoing. As for the zero-tariff exemption, the EU is still pushing for wine and spirits to be included, a key ask from France, Italy and Ireland – even as Washington has flatly denied they could receive such a carve-out. Brussels is also pushing for chemicals and certain medical devices to be excluded from the 15 per cent rate, but it remains unclear whether it will succeed. 'We're trying to get as many products into the list of exemptions ... we have a certain number of sectors where we agree [such as] aircraft and aircraft components,' said the official, while admitting that 'not all products that we care to see ... will be on that list immediately'. Negotiations are also ongoing on European steel and aluminium exports, currently subject to a 50 per cent rate. The EU is aiming to secure 'tariff rate quotas' – meaning lower rates for exports matching what has historically been traded with the US, while accepting higher rates above those thresholds. But US officials have not yet signed off on this concept. The EU official said there was an 'understanding reached at political level' on steel, but that it would 'take a little bit more time' to iron out. A majority of EU countries would eventually have to approve parts of the deal, such as lowering of EU tariffs on certain US exports, but that will only happen 'after the final deal' has been agreed, the EU official said. The EU-US deal was harshly criticised by countries including France and Germany for giving in too much and accepting higher tariffs. German finance minister Lars Klingbeil on Monday said that the EU had been 'too weak' in negotiations with the US and that Germany 'can't be satisfied with the result that was achieved'. The commission, which negotiates trade deals on behalf of the bloc, pushed back on Tuesday saying that it was 'most surprising ... given that nothing has happened here ... without the clear signal received from our member states'. Officials also pointed out that the agreement averted an all-out trade war and Washington making good on its threat of pulling its security guarantees from Europe. Ms von der Leyen's trade agreement includes investment pledges and more purchases of US weapons and energy products. 'We chose the less bad option and we feel this is the better choice,' said the EU official. 'We're very clearly operating in a second best world.' – Copyright The Financial Times Limited 2025 / Bloomberg
Irish Times
11 hours ago
- Irish Times
Presidential election: How much does it cost to run for the Áras?
With the presidential election looming, just how much does it cost to run a successful campaign or otherwise? It is a question that parties and candidates are considering as they either enter the race or think about doing so. National poster campaigns, online advertising and campaign teams cost money and a lot of it. The six candidates in 2018 declared a total spend of €1.36 million in the race for the Áras. The 2011 election cost even more, with more than €2.3 million in spending across seven candidates. Fine Gael has decided to go for it and run a candidate – former European commissioner Mairead McGuinness – for an office the party has never held, and having been burned by presidential elections in the past. Independent left-wing Galway West TD Catherine Connolly is also in the race with the backing of smaller parties and Independents to get on the ballot paper. Fianna Fáil and Sinn Féin have yet to decide if they will enter the fray. Labour backs Connolly, and Flatley jumps the shark Listen | 50:26 Presidential elections are fraught with risks for candidates and political parties. Professor of politics at University College Dublin David Farrell says these risks are 'not just financial', but 'reputational' also. 'There have been plenty of examples of campaigns that have completely come unstuck in all sorts of ways that couldn't have been anticipated,' he says. 'It's a courageous person who puts themselves forward and I think particularly if they're representing one of the larger parties, that in itself could come home to bite them if they don't do particularly well.' Farrell suggests that Fianna Fáil and Sinn Féin may face embarrassment if they do not enter the race, but could also look bad, temporarily at least, if they do and their candidates do not perform well. Independent TD Catherine Connolly has held a press conference outside Leinster House where she spoke about her plans to run for president. Video: Bryan O'Brien It may be a case of 'they're damned if they do and they're damned if they don't', he says. There is some State support when it comes to the costs, but only if a candidate wins or reaches more than 25 per cent of the quota. Under those circumstances, they are entitled to a reimbursement of election expenses up to a maximum of €250,000. However, there is no guarantee of getting any money back, as recent elections have shown. Just two of the six candidates in the 2018 election got refunds – the winner, President Michael D Higgins and the Independent candidate who came second, Peter Casey. Mr Higgins's re-election campaign cost just over €367,000, the most spent that year, and it was reimbursed up to the then-maximum sum of €200,000. Mr Casey, meanwhile, was refunded the full amount of his expenses, which amounted to €119,911. Sinn Féin spent some €209,716 on its 2018 candidate Liadh Ní Riada's campaign, but lost out on any reimbursement as her vote share was too low. The most expensive campaign of recent times was Fine Gael's unsuccessful attempt to get former MEP Gay Mitchell elected in 2011. Mitchell's campaign – which cost €527,152 – did not qualify for any reimbursement after he secured only 6.4 per cent of the first preference votes. It was a disastrous result and one that Fine Gael – and the other two large parties deliberating on entering the upcoming election – will want to avoid. Two names in the race for the Áras: early-mover advantage or risky tactic? Listen | 28:04 Fine Gael, Fianna Fáil and Sinn Féin all had considerable costs last year as they fought local, European and Limerick mayoral elections in June and the general election in November. All three parties recorded deficits for 2024, according to financial statements. Fine Gael and Sinn Féin reported more cash reserves than Fianna Fáil. But this comes with the proviso that any of this that comes from State funding cannot be used for election purposes. Fine Gael remortgaged its Dublin headquarters last September to raise money in advance of the general election. The party did not offer an estimate on how much it will spend on McGuinness's election campaign. A statement indicated it will run 'a vigorous' campaign, which will be 'funded from the party's fundraising activities, the vast majority of which comes from the Fine Gael Superdraw'. It said all campaign spending 'will be in line with electoral guidelines and published with Sipo [Standards in Public Office Commission] after the election'. Fianna Fáil's financial statements for last year indicated 'net expenditure on election activity of €1,600,112 in 2024, contributing to a debt position at the end of the year of €1,527,288 which was in line with our projections at this point of the Dáil cycle'. The party said it will clear this debt and 'build an election fund for the future election cycles in this Dáil period'. It is understood that Fianna Fáil held a fundraising draw earlier this year that raised about €600,000. There are mixed views within Fianna Fáil on whether the cost of the presidential election will influence the decision on whether or not to contest it. One source suggested the party's finances will be a 'huge factor' and it is a reason 'not to run someone for the sake of running someone'. A different Fianna Fáil source said the identity of the candidate and strategy, not costs, will be what is taken into account in the decision-making. Another source said there is a strong view within the parliamentary party that Fianna Fáil should field a candidate, but it has to be the right one. 'There's no point in having a candidate and spending half a million euro and getting no positive result,' said the source. A separate source said the cost of the election 'is a factor' in Fianna Fáil's decision, but added: 'Is it a dominating factor? I don't believe it is. The party will want to see a viable candidate, one that can compete, and that will be the dominating factor.' There has been speculation about potential Fianna Fáil candidates, including former taoiseach Bertie Ahern, to ex-ministers Mary Hanafin and Éamon Ó Cuív. None appear to have been met with much enthusiasm within the party. Taoiseach Micheál Martin has ruled himself out and is consulting with the party on its approach to the election. It could be September before he makes a final decision on running a candidate. Sinn Féin leader Mary Lou McDonald, meanwhile, surprised many recently by not ruling herself out as a candidate as her party continues its deliberations. The Irish Times previously reported there is little appetite within Sinn Féin for her to run, with sources saying they would prefer her to stay in the Dáil, leading efforts to get into government. Sinn Féin may yet join other left-wing parties in backing Connolly. On the extent to which the cost of a campaign is influencing its deliberations, a Sinn Féin source said: 'The internal party discussion on the approach to contesting the upcoming presidential elections are primarily political. Financing a campaign is not the determining factor.' At her campaign launch last month, Connolly said she self-funded her last two Dáil election campaigns, and it will be 'big shift for me to move up and look at a national campaign with a serious amount of money'. [ Fine Gael says Mairead McGuinness 'acted in full accordance' with medical advice after being injured in crash Opens in new window ] She said she would be asking for contributions and the parties backing her are also 'open to providing funds in whatever way they see fit'. The Social Democrats said they are 'proud' to be supporting Connolly, adding: 'While we envisage there will be a financial contribution from the party, the bulk of donations will come from individuals and fundraising efforts around the country.' The Labour Party – also supporting Connolly – said it is 'finalising our approach to the upcoming presidential campaign'. A statement noted: 'As is standard practice, a separate fundraising stream will be established specifically for the purposes of the presidential campaign.' [ Labour Party backs Catherine Connolly's bid for Áras Opens in new window ] The Connolly campaign has been fundraising through its website and a spokeswoman said: 'We're very encouraged by the support Catherine Connolly is getting from around the country. It's really going to be a grassroots campaign.' As of Monday afternoon, the campaign has raised almost €35,000 in less than three weeks. On the evidence of previous presidential elections, Connolly's campaign, and those of any rivals in the race, will need a lot more.
Irish Times
11 hours ago
- Irish Times
Dublin's planned MetroLink will be obsolete because of artificial intelligence, says Dermot Desmond
Artificial intelligence (AI) will make Dublin's planned MetroLink obsolete and the Government should abandon the €10 billion project, according to businessman Dermot Desmond . Instead, Mr Desmond has urged the Government to concentrate on the coming advantages of AI , where autonomously-driven vehicles (AVs) will cut car ownership dramatically in the decades ahead. If approved, construction of the 18.8 km mostly-underground MetroLink should begin between 2028 and 2031, with services between Swords, Dublin Airport, Dublin city centre, and on to Charlemont in south Dublin city opening in early 2035. Equipped with driverless trains running every 3 minutes during peak hours, the MetroLink is proposed to carry 20,000 passengers each hour, each way when it opens. READ MORE Dermot Desmond has said he believes MetroLink will be out of date in 10 or 15 years' time. Photograph: Cyril Byrne However, Mr Desmond is scathing of the plan, believing that public and private transportation is on the cusp globally of the biggest changes for a century or more on the back of the growth of AI. The billionaire said he had believed that the Department of Finance should veto the MetroLink. 'I think it will be useless, out of date in 10 or 15 years' time. This is something that is not going to be required, it shouldn't be planned.' AI and autonomous vehicles will cut the numbers of vehicles on the roads dramatically, he predicted: 'I think you need to look at what's going to happen in the future and then plan backwards.' The billionaire investor has become increasingly interested in the subject of AI, sponsoring a conference in Belfast last month with Queen's University, which heard from major speakers from the United States and elsewhere. 'Where the change that's going to make a big difference to everybody in the world, not alone Ireland. I think that change is going to come out of transport,' Mr Desmond declared then. 'Within 15 to 25 years, I think it will be mandated that there will be autonomous vehicles. People will not be allowed to drive anything,' he said, adding that AI is already cutting travel times and saving energy. 'Public transport systems in the future will become much more efficient. Buses will know what and where the demand is and will organise themselves accordingly,' said Mr Desmond, who urged the Government to plan for wide-scale AV bus services. The changes to come will overturn every conception held today about transport in cities, with faster journeys, less pollution and far less demand for parking because there will be fewer private vehicles, replaced by robotaxis. Most cars today lie idle for 80 per cent of their lives. 'The most optimistic case for Dublin is a reduction of 98% in vehicle numbers,' he said, though he put most realistic reduction between 20% and 60%. 'AV cars will require less space on roads as they will be better able to travel efficiently if the margin for human error is removed,' he said, 'We already live in a world where our phones anticipate when we will leave for work and tell us how long it will take. '
