Govt's NDP is 'fantasy economics', says O'Callaghan
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Irish Examiner
22 minutes ago
- Irish Examiner
EU-US trade deal: Business groups welcome certainty but say 15% tariff 'still substantial burden'
Business groups have tentatively welcomed the framework trade agreement reached between the EU and the US, as it brings more certainty for firms, but the 15% tariff on imports to the US 'still represents a substantial burden for many industries'. On Sunday, US president Donald Trump met with EU Commission president Ursula von der Leyen at his golf course in Scotland to finalise a framework trade deal with the EU. The agreement will see the US impose 15% tariffs on imports from the bloc. This is up from the 10% currently in place, but is lower than the 30% Mr Trump threatened to impose from August 1 should a deal not have been reached. Trade between the EU and the US accounts for almost a third of global trade. Speaking after the meeting, Mr Trump said: 'I think this is the biggest deal ever made.' Ms von der Leyen said the deal will 'bring stability, it will bring predictability'. Ms von der Leyen defended the trade deal as 'the best we could get', adding that it was not to be underestimated given the looming threat of 30% tariffs. A baseline tariff rate of 15% on EU goods imported into the US would apply to cars, semiconductors and pharmaceutical goods, Ms von der Leyen said. Meanwhile, a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision has been made on a rate for wine and spirits. The deal also includes $600bn of EU investments in the US, along with EU purchases of US energy and military equipment. Ibec: Brexit-style supports needed Ibec chief executive Danny McCoy said the agreement brings an 'end to a significant amount of uncertainty for some businesses'. 'However, a 15% tariff still represents a substantial burden for many industries. 'Sectors which rely heavily on the US market, and operate within small margins, will once again be significantly impacted by an additional 5% tariff on top of what they have already had to absorb over the past several months, and well in excess of the 1% effective tariff which existed before April." He added: 'Our message to the Government, as it was with the 10% tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit. Chamber Ireland: Viable firms need tariff supports Chamber Ireland welcomed the agreement on trade tariffs, with its chief executive Ian Talbot stating: 'Certainty is critical for businesses, and we've seen the impact of uncertainty over the past couple of months in terms of investment. 'While tariffs are never welcome news for businesses on either side of the Atlantic, reaching an agreement — however imperfect — is preferable to no deal. It, at least, allows companies to plan and adapt in the short term.' Mr Talbot also called for the EU and the Government to create a 'fund to support viable businesses in adapting to new tariffs', and also to ensure 'potential arbitrage issues with Northern Ireland are clearly understood and addressed'. This is the latest deal Mr Trump has reached with a few countries around the world before his August 1 deadline. Agreements with the US have also been reached with Britain, Japan, Indonesia, and Vietnam, but Mr Trump's administration has failed to deliver on a promise of '90 deals in 90 days'. He has periodically railed against the EU, saying it was 'formed to screw the US on trade'. Mr Trump said that the EU wanted 'to make a deal very badly' and said, as he met Ms von der Leyen, that Europe had been 'very unfair to the US'. His main bugbear is the US merchandise trade deficit with the EU, which reached $235bn in 2024, according to the US Census Bureau data. The EU points to the US surplus in services, which it says partially redresses the balance. Mr Trump also talked about the 'hundreds of billions of dollars' that tariffs were bringing in. Additional reporting Reuters
Irish Times
22 minutes ago
- Irish Times
Call for Government to urgently support Irish businesses most at risk from US tariffs
Social Democrats finance spokesman Cian O'Callaghan says the Government must publish an updated summer economic statement to account for the EU 's tariff agreement with the US . In a statement on Sunday evening, Mr O'Callaghan welcomed a deal that 'avoids a catastrophic trade war', but said it is 'beyond doubt . . . that a 15 per cent tariff rate will be very damaging for many Irish businesses'. 'It is less than a week since the Government published its summer economic statement, using an assumption of no tariffs,' he added. 'This was despite the dogs on the street being aware that a 10 per cent tariff rate was the best possible outcome.' Mr O'Callaghan was one of a number of figures in Irish politics to publish statements regarding the trade deal on Sunday evening. Labour leader Ivana Bacik called on the Government to engage with Irish businesses, warning that continued uncertainty around pharmaceutical exports is evidence of 'just how difficult it is to engage constructively with the Trump administration'. READ MORE 'We in Labour are calling on the Government to fast-track the development of a new, modernised short-time work scheme to ensure that skilled jobs are not lost in sectors under pressure,' Ms Bacik said. 'Other EU countries have long-standing schemes that help employers retain staff during economic shocks. We need a system in place in Ireland that can respond to future volatility or sectoral downturns quickly and effectively.' Taoiseach Micheál Martin welcomed the agreement, saying it 'will help to protect many jobs in Ireland'. He added that it 'brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world". Mr Martin acknowledged that higher tariffs will make trade 'more expensive and more challenging' but said that the agreement 'creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US'. [ EU-US deal good for Ireland as it averts trade war but vital details remain unclear Opens in new window ] The Taoiseach pledged to study the details of the agreement, including its implications for Irish businesses exporting to the US and for other sectors operating here. 'Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many,' his statement concluded. There were further calls to support Irish businesses from Sinn Féin spokesperson on foreign affairs and trade, Donnchadh Ó Laoghaire. 'Ultimately, while a deal is preferable to tit-for-tat tariffs, the reality is, tariffs of this kind are bad for businesses, consumers and workers,' he said. 'We need to take the necessary steps to support our indigenous businesses, to increase exports to new markets, to grow talent across the island and to trade across the island and internationally." Tánaiste and Minister for Foreign Affairs Simon Harris echoed the Taoiseach in welcoming the transatlantic trade agreement, noting that European Commission president Ursula von der Leyen described the 15 per cent tariff rate as 'all-inclusive'. 'While Ireland regrets that the baseline tariff of 15 per cent is included in the agreement, it is important that we now have more certainty on the foundations of the EU-US trade relationship, which is essential for jobs, growth and investment,' Mr Harris said. Finally, Danny McCoy, CEO of business lobby Ibec, said the trade agreement represents a 'substantial burden for many industries', particularly those relying heavily on the US market to operate. 'Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit,' Mr McCoy said.
Irish Examiner
5 hours ago
- Irish Examiner
Alcohol health labelling 'will add over a third to costs'
Taoiseach Micheál Martin was lobbied by business representative group Ibec to delay the introduction of alcohol warning labels for 'at least' four years due to tariff fears. Ibec chief executive Danny McCoy warned the Fianna Fáil leader that the new requirements would lead to packaging and labelling costs increasing by 'over one-third'. The letter also suggested that some distillers had even suspended brewing in fear of impending tariffs by the US administration. Mr McCoy also sent the letter to Tánaiste and trade minister Simon Harris and health minister Jennifer Carroll MacNeill in early June. The Government agreed earlier last week to suspend the rollout of warning labels for two years. In May 2023, then health minister Stephen Donnelly signed the Public Health (Alcohol) (Labelling) Regulations 2023. It was envisaged that the law would make it mandatory for alcohol product labels to state the calorie content and grams of alcohol in the product. They would also warn about the risk of consuming alcohol when pregnant and about the risk of liver disease and fatal cancers from alcohol consumption. The change was due to come into effect in May 2026, to allow a three-year implementation period for the drinks industry. However, there have been rumblings in recent weeks that the plan would be postponed, with Mr Harris saying that it would be additional disruption and a 'potential trade barrier' as tariff negotiations continue. At Tuesday's Cabinet meeting, the Tánaiste told ministers that Ms Carroll MacNeill will defer the plans for two years. This is despite reports that it would be a four-year pause. Correspondence released under Freedom of Information (FoI) shows that the Taoiseach was being lobbied by Ibec to drop the labelling plans. On June 3, Mr McCoy called for the plans to be dropped for four years 'at least'. 'The wider drinks sector, but particularly many of the new emerging distilleries, have significant exposure to these new tariffs and the wider trade uncertainty,' wrote Mr McCoy. 'The majority of distilling across the country is now suspended. The introduction of new labelling requirements for the drinks sector, which will add over one-third to product labelling and packaging costs, should be suspended for at least four years to give some certainty to operators. 'Reducing regulatory burden costs to free up resources to allow companies invest in finding new markets would be a positive development.' Mr McCoy said that the legislation had been cited by the US administration in its 2025 National Trade Estimate Report on Foreign Trade Barriers, which he said was 'cause for further concern and reason for this legislation to be deferred'. He added: 'The industry does not want this to be an issue of disagreement in overall efforts to secure a resolution on trade relations and restoration of a tariff-free trading environment.' Further correspondence shows the letter was also forwarded from the Taoiseach's office to the Department of Enterprise several days later seeking an update on enterprise minister Peter Burke's engagement with Ms Carroll MacNeill. A letter sent from Mr Burke to Ms Carroll MacNeill on May 15 was also released under FoI. He said that recent months have seen 'significant global uncertainty and a rapidly shifting trading landscape', which he said 'could have profound competitiveness implications for small open economies like Ireland'. Mr Burke said that Ireland would be the first country in Europe to introduce the labels. 'The proposed measures will mean increased production and sale costs for Irish producers and importers and add to the price payable by consumers at a time when prices are also rising due to a multitude of other factors,' wrote Mr Burke. 'Notwithstanding the overarching health benefits of the proposal, I would ask you to consider pausing the introduction of the proposed new requirements.' Calls not to delay plans Meanwhile, Mr Martin was urged not to delay the plans and received a letter just last week from Alcohol Action Ireland chief executive Sheila Gilheany. She said that 'postponing alcohol health information labelling is not consequence free given the thousands harmed by alcohol in Ireland.' Read More Delaying alcohol warning labels prioritises profiteering over health, says Irish Medical Organisation
