Tariffs on EU imports to the US 'won't be good'

The introduction of tariffs on EU imports to the US "won't be good" for either party, the Executive Director of Ibec has said.

Fergal O'Brien said there is an "incredibly kind of chaotic landscape at the moment" stemming from the threat of tariffs on the bloc.

However, he said Ireland "will have a key role to play" in terms of shaping the debate around tariffs at a European level.

Speaking on RTÉ's News at One, Mr O'Brien said "this will be an important issue and agenda for Irish America" due to the depth of Irish-American relationships.

There is, he said, "a really strong story" to tell to US stakeholders that the relationship is "a mutually beneficial relationship".

"We've got lots of Irish companies that are big investors in the US, but crucially American business in Ireland is creating value and income for its shareholders and for US pensioners," he said.

China today announced a wide range of measures targeting US businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein, minutes after new US tariffs on Chinese goods took effect.

China also slapped tariffs on US products such as coal, oil and some autos in a rapid response to the new duties on Chinese goods imposed by US President Donald Trump, escalating trade tensions between the world's two biggest economies.

Regarding pharmaceutical companies, Mr O'Brien said that Ireland brings a lot of technical capacity and capability for those US corporates to be successful.

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Mr O'Brien also noted discussions about the trade imbalance centre on goods rather than services.

He acknolwedged Europe is a "very large importer of US services", but added that the US is "increasingly" looking at Europe's digital economy.

This, he said, is a matter in which Ireland has "a really important story to tell" because of the "predominance of digital technology companies here".

Ireland could be a "key influence" in terms of "how we can have that successful kind of relationship for services and for the wider digital economy"," he added.

"Ireland has an awful lot to bring to the US despite our relative small scale," he stated.

"Ireland needs to use all of the tools at its disposal in terms of bringing that story to people who are making the decisions in Washington," he added.

Earlier, the chief executive of the Irish Exporters' Association said there was "a huge amount of concern" among Irish exporters in relation to US imposed tariffs on goods.

Simon McKeever said "companies are preparing" for a blanket tariff similiar to the one implemented on China and currently paused for Mexico and Canada.

This, he said, would "cause a lot of harm to the economy".

Mr McKeever said those in the sector are "looking at what is the implication of a 10% tariff, a 20% tariff, a 30% tariff".

"What does that mean for both their direct sales into the US? What action can they take?" he added.

In addition, he said exporters must "keep an eye on" not just on the direct sales relationship with the US, but also the impacts on the suppy chain "if there is a trade war going on between any two particular countries".

"We need to watch and wait and see what what President Trump really, really wants out of this," he said.

The tariffs on Canada and Mexico, he said, were over " drugs and immigration", adding "What does he really, really want out of the European Union?"

Mr McKeever said Ireland "will play a very critical role" in talks between the US and the European Union over tariffs on "the run up into the Saint Patrick's Day celebrations in the US".

"We have very strong ties over there," he said, adding "it's been said that we're the seventh biggest investor in the United States".

He noted Ireland has "120,000 jobs" in the country and is also the "single biggest investor in the state of Idaho".

He said Ireland is "a really, really important location" for the US to do business in the EU, "particularly for the services economy".

"I think this requires a massive diplomatic effort on behalf of the Irish Government to emphasize how important the two way trading relationship," he added.

EU trade commissioner Maroš Šefčovič said the EU will react firmly if hit by tariffs

'We will all be losers', EU trade commissioner says

It comes as European Union Commissioner for Trade and Economic Security Maroš Šefčovič has said that a trade war between the EU and the United States would mean "we will all be losers".

Mr Šefčovič described EU-US trade ties as the "most important artery of global trade".

Speaking at a press conference in Warsaw after the conclusion of an informal meeting of EU trade ministers, Mr Šefčovič addressed growing concerns within the bloc that the new Trump administration in the US is about to introduce tariffs on EU goods and services.

"The transatlantic partnership is of strategic importance. No other two economies are as integrated as we are, and, on both sides of the Atlantic, we benefit from this unique bond. There is nothing unfair in it," said Mr Šefčovič.

"It's very clear that this relationship is good for both of us. It creates a lot of jobs," he said.

"If we are hit by the tariffs in an arbitrary manner, then we will react firmly."

Early this morning, US President Donald Trump said that tariffs on European goods will "definitely happen" and referred to a $300bn (€261bn) trade deficit with the EU.

During the press conference, Mr Šefčovič cited figures from Eurostat, the EU's statistical office, to emphasise a more equal reading of the trade balance between the EU and the US.

The EU, he said, had a surplus of €143bn in terms of traded goods with the US.

However, the US enjoys a surplus of €104bn when it comes to services.

"This means that the overall EU trade surplus towards the US is some 3% of our total trade flow of €1.5 trillion [annually], or around €50bn," he said.

That figure is a long way off the Trump administration’s €261bn calculation.

The same Eurostat figures from last October state that the EU bought US goods to the value of €350bn and services worth €400bn.

Mr Šefčovič said the EU was waiting for communication with the new US administration and remained ready "to listen and negotiate in the EU’s mutual interest".

Five million jobs on both sides of the Atlantic, said the bloc’s trade commissioner, depend on US-EU trade which he described as "healthy and robust".

Speaking in Warsaw before the start of today meeting of EU trade ministers, Ireland’s Minister for Enterprise, Trade and Employment, Peter Burke, said EU-US trade partnership was the "engine powerhouse of the global economy".

"It is critical that we protect it and keep negotiations open through the [EU-US] Trade Council to deescalate any tensions that might be there," he said.

"When you look at trade in terms of goods and services, there’s a very significant surplus in favour of the US, well over €100bn."

At today’s meeting in the Polish capital, EU trade ministers also discussed ways to strengthen the EU’s global competitiveness and new legislation, to be introduced at the end of this month, that will reduce red tape for industries involved in decarbonisation.

Ministers also discussed the challenges facing Europe’s steel, automotive and chemical industries – three sectors that face tough competition from producers in the rest of the world.

Additional reporting Liam Nolan

Tariffs on EU imports to the US 'won't be good' - Ibec

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