THE US government has hit a 25% tariff on EU products including several high-value Irish exports.
Almost €7 billion worth of EU products will have duty taxes imposed upon them following a judgement made by the World Trade Organisation (WTO).
The Trump Administration has issued the tariffs after claiming EU governments have illegally subsidised aircraft manufacturer Airbus.
US Trade Representative Robert Lighthizer said: "For years, Europe has been providing massive subsidies to Airbus that have seriously injured the US aerospace industry and our workers.
"Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies. Accordingly, the United States will begin applying WTO-approved tariffs on certain EU goods beginning 18 October.
"We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers."
Ireland’s agriculture industry looks set to be hit hardest with products like butter, cheese, yoghurt and other pork products set to be hit by the charges.
Companies like Ornua, which has developed a large US market for brands like Kerrygold could be among those impacted most.
While Baileys and other Irish liqeurs could face the tariff, Irish whiskey exports have enjoyed a narrow escape. With US officials slapping the 25% tariff on single-malt whiskies coming from the UK but not from the Republic.