DONALD Trump has reignited trade tensions with the EU by reversing his earlier decision to extend tariff negotiations.
In a post on Truth Social, Trump declared there would be “no extension” beyond today’s deadline, raising the risk of steep new tariffs on European goods.
Trump had previously signalled August 1st as the cutoff for a deal, but that grace period is now off the table.
The EU is scrambling to reach at least a basic agreement to avoid new tariffs — including threatened 50% duties on key imports — though progress has been slow.
Ireland is already affected by existing 10% US tariffs on products like butter, whiskey, and some medical goods.
While the broader pharmaceutical sector has so far been spared, a recent US review could pave the way for 25% tariffs — a major concern for one of Ireland’s most critical industries.
Tánaiste Simon Harris has called for a “zero for zero” tariff deal, but such an outcome looks unlikely.
There are reports that planes and alcohol may be excluded from future tariffs, which would offer some relief to Irish exporters.
Although the Irish economy hasn’t yet seen major damage, the uncertainty is putting investment decisions on hold and weighing on exporters already hit by the weak US dollar and trade friction.
Meanwhile, divisions within the EU are complicating the bloc’s response.
Germany favours a quick deal to protect its car industry, while France is pushing for a tougher stance.
The EU has so far avoided retaliatory action, but officials warn that cannot continue if Trump escalates.
While markets currently expect cooler heads to prevail, there’s growing concern that talks could collapse, triggering a damaging trade war.
Ireland’s export-heavy economy and reliance on US investment make it particularly vulnerable to these tariff threats.
See More: Donald Trump, EU, Simon Harris, Tariffs
