A 15 PER CENT tariff on EU goods being imported into the US will apply to all sectors it was confirmed in a statement issued today.
The EU-US Joint Statement on Trade, released this morning, confirms a 15 per cent tariff ceiling on EU goods exports to the US inclusive of existing US Most Favoured Nation tariffs, except where these are already higher.
Tánaiste Simon Harris has welcomed the clarification provided in the statement, which he claims provides a “first step” to further negotiations.
“We note the Joint Statement is now published following weeks of negotiation,” Mr Harris said today.
“We welcome clarity that the deal includes a single, all-inclusive 15% tariff on EU goods.
“We also now have assurance that this rate will extend to pharmaceuticals and semiconductors,” he added.
“This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors.”
Today’s joint statement also includes ‘zero for zero’ tariff rate carve outs for aircraft and aircraft parts and “leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest” Mr Harris’s office explained.
“As the Statement makes clear, this is a framework agreement which gives us a first step to negotiate a more comprehensive and formal agreement with the US in the future,” the Tánaiste said.
“Our intention now is to see what other carve outs can be made in areas of interest for Irish exporters.”
The Joint Statement also commits to future work in areas such as mutual recognition agreements on standards and conformity assessments, overcapacity in the steel and aluminium sector, and cooperation on critical raw materials.
“While the deal finally provides certainty, we also are acutely aware of the impact of higher tariffs and the existing difficulties that many Irish exporters have already faced this year,” Mr Harris said.
“In that regard, we also must continue to control what we can control and continue to make our country, and our European Union, as competitive as possible, as good a location as possible to invest in and create jobs.
“We must also look for other opportunities to diversify markets for Irish business. While we want to continue to do business with the US and indeed want to grow business. It is important that we take every opportunity to identify new markets."
Next Monday, August 25, the Irish Government is due to publish its new Market Diversification Action Plan.
Speaking after today's statement was issued, EU Commissioner Maroš Šefčovič said the statement "carries considerable weight and is truly impactful at a time when the trade landscape has completely changed".
"Our transatlantic relationship is one of the largest economic partnerships in the world," he explained.
"And this agreement has a clear, common goal – to put it on solid ground and help drive reindustrialisation on both sides of the Atlantic. We want to fully unleash the potential of our combined economic power.
"But this is not the end. It is the beginning. This framework is a first step – one that can grow over time to cover more sectors, improve market access, and strengthen our economic ties even further."
He added: "A 15% all-inclusive tariff cap for the EU: this is the most favourable trade deal the US has extended to any partner.
"A wide range of sectors – including strategic industries, such as cars, pharmaceuticals, semiconductors and lumber – will benefit from this cap."
See More: EU, Ireland, Joint Statement, Tariffs, Tánaiste Simon Harris, US
