US imposes 20% tariffs on EU imports as Trump unveils his plans
Michael McAleer
10.50pm
The pharma sector has avoided the 20 per cent US tariffs being imposed on imports from the EU, according to a fact sheet published by the White House. Listing goods not subject to the Reciprocal Tariffs, it lists pharmaceuticals as exempt for now. It also indicates that autos/parts already subject to the earlier tariffs of 25 per cent imposed last month will not face the latest tariffs. Other goods exempted are semiconductors and lumber articles.
The fact sheet states that the 10 per cent baseline tariffs will start to apply from Saturday, April 5th while the additional higher tariff rates will take effect from Wednesday, April 9th.
As a signal that the US may be prepared to negotiate, it stated: "These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated."
However, it also made clear that the Executive Orders signed by President Donald Trump "allow him to increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters."
10.25pm
The Taoiseach said he deeply regrets the US decision to impose 20 per cent tariffs on imports from across the European Union and sees no justification for it.
Micheál Martin said: "More than €4.2 billion worth of goods and services are traded between the EU and the US daily. Disrupting this deeply integrated relationship benefits no one. Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk."
He said EU unity is crucial, and any response should be considered and measured.
"Any action should be proportionate, aimed at defending the interests of our businesses, workers and citizens. Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one."
He said a confrontation is in no one's interests. "It is important that we focus on factors that we can control, including improving our competitiveness and investing in infrastructure. By working with Irish-owned companies, multinationals, our EU partners and bilaterally with the US, we can and will weather this storm.”
10pm
With 20 per cent tariffs on all EU imports into the US, Irish food, drink and pharma sectors are likely to be the most impacted by President Trump's announcement on Wednesday.
The concerns will be stoked by fears of an EU response which could lead to a trade war and possibly higher tariffs.
LIBERATION DAY RECIPROCAL TARIFFS 🇺🇸 pic.twitter.com/ODckbUWKvO
— The White House (@WhiteHouse) April 2, 2025
Minister for Finance Paschal Donohoe has said it is “important now that Europe considers our best response back”.
“The moves that President Trump has made will have a big effect on global trade, but Europe and Ireland is approaching this from a position of some strength. We will act to look after our jobs and our interests.”
In a statement tonight, he said: "I must be honest that a 20 per cent blanket tariff on goods from all EU countries could have a significant effect on Irish investment and the wider economy and the impact of what has been announced is likely to be felt for some time. These tariffs are in addition to the tariffs on steel and aluminium (25%) and auto sector (25%) that the US announced last month."
"The EU and Ireland stands ready to find a negotiated solution with the US. Negotiations and dialogue is always the best way forward."
My statement on tonight’s announcement by the US President. pic.twitter.com/uSXKMtiBIU
— Simon Harris TD (@SimonHarrisTD) April 2, 2025
The Irish Farmers Association said the difference in tariffs will impact Irish products like 'Kerrygold' in the US.
It said the fact that New Zealand has a 10 per cent tariff on dairy products - and the UK has a 10 per cent tariff on drinks - while EU tariffs are 20 per cent, will leave Ireland at a disadvantage.
It added that Kerrygold is now the second best-selling butter brand in the US, ing for €500 million worth of product last year.
During his announcement, Mr Trump said the istration had calculated the “combined rate” of all tariffs, non-monetary barriers, currency manipulation and “other forms of cheating” implemented by other countries and the EU.
In return, he said the US was taking a “very kind” approach by generally implementing “approximately half of what they are charging us”.
Ireland was not specifically mentioned in the address, but Mr Trump emphasised his response to the EU.
He said: “You think of the European Union, very friendly. They rip us off, it is so sad to see – it is so pathetic.
“They charge us 39%, we’re going to charge 20% – so we’re charging them essentially half.”
Deirdre Hogan, EY Ireland Indirect Tax Partner said that the US President has calculated that the EU currently imposes 39 per cent tariffs on US imports into the EU.
"How that has been calculated remains to be seen, but he mentioned a number of items, including VAT and other non-financial barriers. As VAT is not a barrier and is applied equally on EU and non-EU suppliers, it may be the case that the EU tariffs calculated by President Trump is overstated," she said.
"That said, 20 per cent tariffs on all goods into the US is going to have a significant impact on EU. The retaliation by the EU, which is expected to follow, may result in a trade war not seen in decades."
Ian Talbot, CEO of Chambers Ireland and Secretary General of ICC Ireland, called for a focus on competitiveness and strategic trade engagement to mitigate any adverse economic impact.
“While the tariffs present immediate challenges, it is essential that Ireland and the EU respond with calm and resolve,” said Talbot.
He emphasised that empowering businesses to sell goods and provide services in other markets remains critical to mitigating the impact of tariffs:
“There are likely to be significantly different sectoral challenges arising from US policies and potential responses over the next few weeks. Government must closely monitor the impacts, particularly on SMEs, and consider measures to viable businesses as they re-engineer their business models.
"Finally, Government must pursue an urgent, relentless focus on the delivery of vital infrastructure. Delivering on what we can control has never been more vital.”
Employers organisation IBEC said it's "deeply disappointed" to see the tariffs imposed on exports from the EU.
The group anticipates the new tariffs will result in a net overall export impact of around 2–3 per cent here in the short-term.
It wants the Government to introduce "time-bound short-time working s to help keep employees connected to businesses experiencing demand shocks".
It has also suggested drawing on Covid and Brexit measures to protect the economy and jobs.
Sinn Féin leader Mary Lou McDonald says safeguarding jobs is now the priority.
In a statement following the tariffs announcement, she said the government needs to do better at what is within their control - ing domestic businesses, investing in infrastructure and sorting out housing.
Deputy McDonald says getting these things right has never been more important.
My priority is to defend Irish national interests. That means safeguarding jobs, helping Irish businesses to grow in global markets and ensuring the all Ireland economy continues to grow at pace.
The government needs to do better at what is within their control - ing…
— Mary Lou McDonald (@MaryLouMcDonald) April 2, 2025
Labour leader Ivana Bacik said it was time to work closely within the EU on trade negotiations, while also focussing on diversifying the economy, building critical infrastructure and protecting jobs with short-term work s.
In the UK, which faces a 10 per cent tariff on exports to the US, its Business Secretary Jonathan Reynolds said the United States “is our closest ally” and the British government would “remain calm and committed” to doing a deal to mitigate the impact of the tariffs announced by Donald Trump.
9.50pm
President Donald Trump said on Wednesday that he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners, in a move that ratchets up a trade war that he kicked off on his return to the White House.
All EU imports to the US will incur 20 per cent tariffs. Trump displayed a poster that listed reciprocal tariffs, including 34% on China.
The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalisation that have shaped the global order. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
"It's our declaration of independence," Trump said at an event in the White House Rose Garden.
Other details were not immediately apparent as Trump continued to make remarks that echoed his longstanding complaints that US workers and companies are hurt by global trade.
The istration has said the new tariffs will take effect immediately after Trump announces them, though it has not yet published the official notice required for enforcement.
The istration, however, did publish an official notice that a separate set of tariffs on auto imports that Trump announced last week will take effect starting on April 3rd.
Trump has already imposed 20% duties on all imports from China and 25% duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars. Businesses have complained that Trump's barrage of threats has made it difficult to plan their operations.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
9.40pm
To the countries unhappy about the tariffs, President Trump said “terminate your own tariffs, don’t manipulate your currencies and start buying tens of billions of dollars of America goods.”
"In many cases, the friend is worse than the foe in of trade," Trump said.
"We subsidise a lot of countries and keep them going and keep them in business," Trump said about trade partners, specifically Mexico and Canada. "Why are we doing this? I mean, at what point do we say you got to work for yourselves."
"We are finally putting American first," Trump said.
"Trade deficits are no longer merely an economic problem. They are a national emergency," he said.
Trump held up a board showing the new rates charged on most countries. Rates ranged from 10% to 49%.
With a few exceptions, based on the charts Trump read out, the tariff rate being imposed by the US on most countries was around half of what those countries charged. There were some exceptions in which the US charged the exact rates that those countries charged, according to the chart.
"This is not full reciprocal, it is kind reciprocal," Trump said.
9.20pm
The US will impose a 20 per cent tariff on all EU imports, US President Donald Trump has announced. It will also impose a 10 per cent tariff on UK imports.
China will face 34 per cent tariffs on its goods in the US, Vietnam will face 46 per cent tariffs, Taiwan 32 per cent and Japan 24 per cent. Of the rest:
- Switzerland 31%
- South Africa 30%
- Brazil 10%
- Israel 17%
- Japan 24%
- India 26%
- -South Korea 25%
- Pakistan 58%
The US will establish a minimum baseline tariff of 10% on all other countries not on the list he held up at the White House event.
9.15pm
US President Donald Trump said effective at midnight, the US will impose 25 per cent tariff on all foreign-made automobiles.
Mr Trump said his plan is to announce “reciprocal tariffs on countries throughout the world...Reciprocal, they do it to us so we do it to them.”
“This is one of the most important days In American history, it’s our declaration of economic independence.
“It’s our turn to prosper. With today’s action we will finally be able to make America greater than ever before.
“Ultimately more production at home will be mean stronger competition and lower prices for Americans.”
9.05pm
Mr Trump has for weeks referenced April 2nd as “Liberation Day”, when he plans to impose an array of duties that could upend the global trade system. Details of the tariff plans were still being formulated ahead of a White House Rose Garden announcement ceremony.
As we await the announcement of new tariffs by the US President Donald Trump, it is reported that his approval rating fell to 43%, the lowest since his return to office, as Americans soured on his tariff moves and his istration's handling of information about a military strike in Yemen, a Reuters/Ipsos poll found.
The three-day poll, which closed on Wednesday, showed approval of Trump's performance as president down 2 percentage points from a poll conducted March 21-23 and 4 points below the 47% approval he had shortly after taking office on January 20th.
We expect that Tánaiste Simon Harris will make a public statement following Mr Trump’s announcement tonight. However, the European Union is not going to respond until tomorrow morning, with a statement expected from the President of the European Commission Ursula von der Leyen.
