Tánaiste Simon Harris said he believes US president Donald Trump’s threat to impose 30 per cent tariffs on goods from the European Union is a “negotiating position”.
Mr Harris said that Mr Trump “recognises the need for a deal” and that his letter to European Commission president Ursula von der Leyen outlining his plan – published on his Truth Social website on Saturday – was “his way” of negotiating.
Speaking in Dublin on Sunday, the Tánaiste and Minister for Foreign Affairs said that while Mr Trump’s letter had been “escalatory”, it had not changed anything because the negotiation deadline remains August 1st.
“So in many ways, this looks to me as a negotiating tactic by president Trump. We prefer to do our negotiations around the table. He tends to do his negotiations through Truth Social,” he said.
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“He can do it however he wishes. From a European perspective and an Irish perspective, we’re continuing to intensively engage.”
Mr Harris said he had been in contact overnight with the EU trade commissioner Maroš Šefčovič, and that Minister of State Thomas Byrne will be at a meeting of EU ministers on Monday.
Mr Harris said he would also meet the US ambassador in Dublin on Monday.
“We do need to remain calm. The deadline of the first of August is still the deadline. President Trump decided to send a letter yesterday that actually, in and of itself, doesn’t change the fact that there are ongoing negotiations between the EU and the US.
“And I often say, and I believe it, it doesn’t matter who won the election in the United States of America in terms of who’s in the Oval Office. This reality is true, that there’s 4½ billion euro worth of trade every single day between the EU and the US. Nobody can sniff at that. Nobody can ignore that reality,” he said. “So we keep at it.”
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Mr Harris said if talks broke down, there would need to be a “broader conversation” about the EU response. Asked if the possibility of a 30 per cent tariff was being factored into budget discussions, Mr Harris said the Government had modelled the reality of a 10 per cent tariff, which would see the economy grow at a slower pace and fewer jobs created next year.
“Obviously, if you end up in a multiple of 10 per cent that would have a more profound impact. But we’re not there. Where we are is in a period of negotiation to try and get a framework agreement.
“And I see president Trump’s letter, and remember, president Trump sent many of these letters, many of these letters to many countries. I see it as part of the rhythm of the negotiations that are under way. We should take it seriously, but we shouldn’t lose sight on negotiating an agreement, because, like I say, there’s US companies that value and know the importance of the economic relationship with the EU.”
