The Government is expected to push the European Union to avoid further stoking tensions with the United States after efforts to negotiate a tariff deal were set back by Donald Trump over the weekend.
The US president said trade coming from EU countries would be charged tariffs, or import taxes, of 30 per cent from next month, triple the rate European leaders had largely conceded to paying during recent negotiations.
At a meeting in Brussels on Monday, EU trade ministers will debate ways for the bloc to respond to the latest twist in the transatlantic tariff dispute.
The European Commission, the EU’s executive arm that has been negotiating with the Trump administration, will keep pressing for a deal that would avoid higher US tariff rates kicking in. Sources in Dublin and Brussels said discussions would continue, with the aim of getting some agreement over the line by August 1st.
RM Block
The latest threat from Mr Trump of blanket 30 per cent tariffs on trade appeared to be a “negotiating tactic”, rather than a final position, Tánaiste and Minister for Foreign Affairs Simon Harris said on Sunday.
“We prefer to do our negotiations around the table. He tends to do his negotiations through Truth Social. He can do it however he wishes. From a European perspective and an Irish perspective, we’re continuing to intensively engage,” he said.
Mr Harris, who will meet US ambassador to Ireland Edward Walsh on Monday, said Mr Trump “recognises the need for a deal”.
European businesses have paid 10 per cent tariffs on goods sold into the US since early April, with steel products and cars subject to higher levies.
EU officials had been confident a deal was ready to be signed last week before Mr Trump effectively threw the negotiations wide open again. The proposed agreement would have seen Brussels accept much of those existing tariffs.
[ Calls grow louder for Europe to deploy its ‘Big Bazooka’ in tariff negotiationsOpens in new window ]
Speaking on Sunday, European Commission president Ursula von der Leyen said negotiators would be pushing to get a deal over the line in the coming weeks.
One Government source described the move by Mr Trump as a possible effort to squeeze more concessions from the EU.
French president Emmanuel Macron has put the idea of the EU using emergency “anti-coercion” powers against the US back on the table, in the event no agreement is reached by August 1st.
The Irish Government is opposed to such a move, which could include putting a levy on the digital revenues of US tech multinationals, export controls, and other restrictions on US businesses in Europe.
When asked about the prospect yesterday Ms von der Leyen said the EU was “not there yet”, and the anti-coercion instrument was only intended for “extraordinary” circumstances.
A set of EU counter-tariffs on US steel, soybeans, oranges and other products had been due to kick in on Monday after a three-month pause. The pause has been extended until early August to see how talks play out over the next two-and-a-half weeks. A second, larger set of retaliatory tariffs is also ready to go if needed, Ms von der Leyen said.
In his July 11th letter, Mr Trump warned any attempt to hit back with tariffs on US industries would be met with further import duty hikes from his side.
The commission yesterday told diplomats from EU countries that preparations for a no-deal scenario were also being stepped up, one source briefed on the discussions said.
Minister of State for European affairs Thomas Byrne, who will attend the meeting of EU trade ministers, said everybody wants a deal done with Washington “as soon as possible, including if possible, in advance of the 1st August deadline”.
