European Commissioner Michael McGrath has said the European Union will do everything it can to avoid a trade war but it needs "a willing partner in the form of the United States" to agree new and stable terms of trade.
Speaking in Killarney, at the Global Economic Summit, Commissioner McGrath said the EU is confident that "if the goodwill is there and if there is a willingness on both sides to compromise, an agreement will be reached" on tariffs.
"There is a huge amount at stake here for businesses, for consumers, and ultimately for workers as well, who could face the loss of their job in the event of a full blown trade war," he said.
"It is categorically in nobody's interests. It must be avoided.
"The European Union will do all that we can to make sure it is avoided but we do require and need a willing partner in the form of the United States to agree new, stable terms of trade that can provide certainty and predictability to businesses."
The European Commission said President Ursula Von der Leyen and US President Donald Trump have agreed to fast track trade negotiations and to stay in close contact following a phone call last night.
Mr Trump said he would pause his threatened 50% tariffs on the European Union until 9 July, after a "very nice call" with Ms von der Leyen.
Taoiseach Micheál Martin welcomed the phone call, saying it was "absolutely important" that the EU and the US agree a "realistic and reasonable deal".
"I welcome the conversation that President Trump has had with von der Leyen and that we are back to the original timetable of July for both Europe and the US to negotiate a deal," Mr Martin said.
Tánaiste Simon Harris also welcomed Mr Trump's decision.
Mr Harris said he wants to see "meaningful and substantive talks", adding that Ireland will continue to contribute actively and positively.
"We have much work to do and no time to waste to find a deal that is good for both economies and protects jobs and investment," he said in a statement.
