Trump's deal with Europe sucks for Ireland and what the EU is importing

Irish Daily Mirror

2 days ago

Europe is poised to embrace a surge of American vehicles and energy following Brussels securing an eleventh-hour trade agreement with Donald Trump, barely averting a transatlantic trade war.
The pact, revealed on Sunday, means the European Union will now encounter a uniform 15 per cent levy on exports to the United States—cutting in half the 30 per cent rate previously threatened by the former president.
In return, Mr Trump stated the EU had consented to eliminate tariffs completely on US goods entering the bloc.
Nevertheless, in stark contrast to the EU's negotiations with the UK over Brexit, where complex matters such as implementing trade obstacles across the Irish Sea arose, this time Ireland's interests appear to have been relegated to the lower end of the bloc's priorities. How significant is Trump's agreement with Europe?
Under the arrangement, the EU will purchase $750bn (£558bn) of energy from the United States and pledge an additional $600bn in investments into the world's largest economy.
"We are agreeing that the tariff straight across for automobiles and everything else will be a tariff of 15pc," said Mr Trump, who has consistently advocated for Europe to purchase more American oil and gas.
"We have the opening up of all the European countries, which were essentially closed. You were not exactly taking our autos, you weren't exactly taking our agriculture. Now it is open.
"It is open for our companies to go in and do a good job." Europe is set to welcome a wave of American cars and energy after Brussels clinched a deal (Image: Getty)
Mr Trump stated the agreement would provide Europeans with enhanced access to US pickup trucks and SUVs, with commerce between the two economies now poised to grow.
"They [Europe] are going to make a lot of money with this," he said. "I think everybody is. And it is going to bring a lot of unity and friendship."
Financial markets have been rattled in recent months by Mr Trump's fluctuating trade policies, with the tariff standoff generating uncertainty for global investors and governments. What does Trump hope to achieve with his Europe trade deal?
Ms von der Leyen said the objective of the agreement was to "rebalance" trade flows between the two sides.
"The starting point was an imbalance, a surplus on our side and a deficit on the US side, and we wanted to rebalance that," she said.
"We wanted to do it in a way that trade goes on between the two of us, across the Atlantic.
"The two biggest economies should have good trade flowing: rebalance, but enable trade on both sides, which means good jobs on both sides of the Atlantic, which means prosperity on both sides of the Atlantic. That was important to us."
The agreement excludes steel and aluminium, which will still face higher tariffs of 50 per cent when exported to the US. British exports of the same materials face a reduced tariff of 25 per cent. Bad for Ireland: drugs firms left out of deal
This exclusion could prove a major blow to Ireland, which depends heavily on its pharmaceutical exports. "We have to have them made in the US," Mr Trump declared.
"We want them made in the US. Pharmaceuticals are very special.
"We can't be in a position where we are relying on other countries. Europe is going to make pharmaceuticals, drugs and everything else for us too, a lot, but we are going to make our own."
The Irish government has voiced concerns that looming US tariffs could deal a major blow to the country's pharmaceutical sector, which employs around 45,000 people.
Ministers are particularly worried about the impact on multinational drug companies based in Ireland, following signals from Washington that the pharmaceutical industry may be the next target in a broader trade clampdown.
While the EU's new trade agreement with Donald Trump excluded pharmaceuticals from immediate tariff hikes, the US has made clear that it still plans to address the sector in separate talks.
Claus Vistesen, from Pantheon Macroeconomics, stated that the agreed 15 per cent tariff was less severe than many feared, and unlikely to alarm financial markets-but he warned it would still dent both the EU and US economies.
"Trump is finding a middle ground," Mr Vistesen commented. "He is still shooting himself in the foot. US consumers will pay higher prices, and growth in trading partners will be lower than it would have otherwise been."