Latest news with #EUUS
BreakingNews.ie
a day ago
- Business
- BreakingNews.ie
Politics watch: Taoiseach defends EU-US trade deal amid criticism
Here, we have a look at the topics likely to dominate political discourse in the week to come. EU-US trade deal The Taoiseach has welcomed a new trade agreement between the US and EU as having 'avoided a damaging trade war'. Advertisement Taoiseach Micheál Martin also said there is 'much to be negotiated' following what he termed a 'framework agreement'. Speaking to the media in Dublin on Monday, Mr Martin said it 'opens up the prospect of more significant strategic collaboration between the US and Europe on quite a number of issues'. 'It also avoids further escalation, or indeed a trade conflict, which would be very, very damaging to the economies of the United States and of the European Union,' he said. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy.' Mr Martin said it is a very different situation than before April 1st. Advertisement 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' Advertisement Asked about mixed reactions to the deal in Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here… in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' Businesses have had a mixed reaction to the agreement. Advertisement In a statement, business lobby group Ibec said the deal will still leave a "substantial burden" for some industries. Ibec chief executive Danny McCoy said: "Today's trade agreement between the US and EU brings an end to a significant amount of uncertainty for some businesses. However, a 15 per cent 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 per cent tariff, on top of what they have already had to absorb over the past several months and well in excess of the 1 per cent effective tariff which existed before April." Mr McCoy added: "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. "It is important to note that the details are still emerging and will only be worked out as today's framework is fleshed out. These details will be critically important for Ireland. Pharmaceuticals and Semiconductors which equate to 75 per cent of Ireland-US trade are, we understand, included in the 15 per cent deal. However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations." Advertisement Speaking on RTÉ's News at One, IEA chief executive Simon McKeever: "I think the EU was backed into a very difficult negotiating position because of the lack of investment in defence and security spending over the last number of years. It's totally dependent on the US in that space. "I don't think it's a good deal. I don't think it's a great deal and for Irish businesses, they're now faced with a 15 per cent tariff they weren't faced with before and they'll need to deal with that. "I think that we were negotiating with one if not two hands tied behind our back. I don't think we were in a very strong position because of the defence issue." He called on Tánaiste Simon Harris to get the trade forum together urgently. "Companies are going to need help. We have called for a tariff adjustment fund, which is based on the Brexit adjustment reserve and was brought out in 2021. "Irish companies are going to need time to get to grips with this. I'm calling on Simon Harris to please get the trade forum together tomorrow or on Wednesday, because we need to get back to our members with this." French prime minister François Bayrou called the deal a "dark day" for Europe. 'It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission,' Mr Bayrou wrote on X. Michael D Higgins tells EU presidents silence on Gaza would be a 'moral failure' President Michael D Higgins has written to other European presidents to say that silence on Gaza would be a moral failure. He said that while Israel has a right to defend itself, they cannot let the 'horrific' attack on October 7th, 2023, 'provide a licence or cover' for the scale of civilian deaths in Gaza. Mr Higgins wrote the letter to the Arraiolos Group, an informal organisation representing presidents of EU countries which meets once a year. The political forum is named after the Portuguese town where the first meeting took place in 2003. 'I am sure that we all remember with horror the moment when news broke of the horrific atrocities carried out by Hamas as we returned from our meeting of the Arraiolos Group in Porto in October 2023,' he said. 'These atrocities were rightly condemned by all member states. We were not silent and called for the unconditional release of all hostages. 'While Israel has a right to defend itself, we cannot let that horrific event provide a licence or cover for the totally unacceptable loss of life, including from malnutrition and dehydration by infants and mothers that is now being perpetrated in Gaza.' Abroad The EU-US trade deal was announced during US president Donald Trump's visit to Scotland, where he appeared alongside European Commission president Ursula von der Leyen. He also appeared with UK prime minister Keir Starmer at a press conference on Monday, where they addressed a range of topics. Mr Trump said the focus in Gaza was getting food to people amid ongoing Israeli blockades of aide that have left the population on the brik of mass starvation. Mr Trump also suggested he will bring forward a deadline for Russia to agree a ceasefire with Ukraine.
Yahoo
2 days ago
- Business
- Yahoo
Europe reacts with mix of relief and concern to US trade deal
By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio
Reuters
2 days ago
- Business
- Reuters
Europe reacts with mix of relief and concern to US trade deal
BRUSSELS, July 28 (Reuters) - European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis ( opens new tab shares were up 3.5% and car parts maker Valeo ( opens new tab jumped 4.7% while German pharma group Merck KGaA ( opens new tab rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank.
Yahoo
2 days ago
- Business
- Yahoo
Europe reacts with mix of relief and concern to US trade deal
By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
French ministers say EU-US trade deal has merits but is also unbalanced
PARIS (Reuters) -French government ministers said a framework trade deal between the United States and European Union had some merits - such as exemptions for some key French business sectors such as spirits - but was nevertheless unbalanced. "The trade agreement negotiated by the European Commission with the United States will bring temporary stability to economic actors threatened by the escalation of American tariffs, but it is unbalanced," wrote French European Affairs Minister Benjamin Haddad on X. That view was echoed by France's industry minister Marc Ferracci, who said more talks - which could last weeks or months - would be needed before the deal could be formally concluded. Ferracci told RTL radio that more needed to be done in terms of rebalancing the EU's trade relations with the U.S. "This is not the end of the story," Ferracci told RTL. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
