‘Makes sense’ to review EU tariff list, Harris says
By Cillian Sherlock, PA
It “makes sense” for the European Union to review the rationale behind proposed countermeasures for US tariffs, Tánaiste Simon Harris has said.
The Government regards the threat of US tariffs on alcoholic drinks from the EU as a “very serious issue”, as the Irish drinks sector could be massively impacted by an escalation in Europe’s tit-for-tat trade dispute with President Donald Trump.
US tariffs of 25 per cent on all imports of steel and aluminium products and derivatives came into effect worldwide on March 12th.
On the same day, the EU announced its proposed countermeasures including the re-imposition of suspended tariff measures from April 1st and proposed new measures to come into effect later that month.
The April 1st measures affect a range of US goods including boats, bourbon whiskey and motorbikes.
The US istration is expected to announce further measures on April 2nd.
Mr Trump personally threatened a 200 per cent tariff on imported alcoholic drinks from the EU, which has caused concern among the Irish drinks industry.
Tánaiste Simon Harris said Government is doing a “sector-by-sector” analysis of the potential implications of tariffs, but added: “We can’t lose sight of first principles here and first principles are tariffs are bad news for consumers in Europe, Ireland and the United States.”
He added: “Ireland and the European Union wants to do business with the United States. In fact, we want to do more business with the United States.
“It seems at the moment, it is the preference of the US to go ahead on April 2 and to announce measures they intend to take, and only after that point, to begin to engage intensively on the way forward.
“I actually think it would be a much better use of time to start that engagement now.”
Mr Harris, who is Minister for Foreign Affairs and Trade, said he would begin a series of calls with his EU counterparts to discuss the bloc’s response.
Asked if he would ask his counterparts to reconsider the inclusion of US alcohol products, Mr Harris said: “We need to be very careful as a country and as countries highlighting one item over another, because even if you make progress on one item, well then the focus just moves to another.
“What I don’t want to do is put any sector up in lights here. I want to continue to articulate the position that we need an agreement that doesn’t see significant tariffs being imposed on Irish products. But of course, I think it does make sense for the European Union to look at the list.
“I think the original plan was to kind of just renew the suspended list. I’m not sure that’s the most strategic approach.
“So while I don’t want to get into individual items, I do think it makes sense to look at the rationale for those items on that list back then and see if that rationale still applies today. So yes, we will have an opportunity to make that point today.”
Meanwhile, Mr Martin raised “concern” that global economic uncertainty caused by potential tariffs and trade wars is “dampening down investment”.
He said he would be discussing this at the European Council meeting on Thursday.
The Government’s trade forum will meet on Friday ahead of the potential imposition of broader US tariffs.
