The Taoiseach has said the trade agreement reached between the EU and the US will “help protect many jobs in Ireland”.
The United States struck a framework trade deal with Europe this evening, averting a spiralling row between two allies who account for almost a third of global trade.
The deal, that includes a 15% tariff on EU goods entering the US and significant EU purchases of US energy and military equipment, will bring welcome clarity for EU companies.
However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate.
The deal came after European Commission President Ursula von der Leyen travelled to Scotland for talks with US President Donald Trump to push the hard-fought agreement over the line.
Watch: Von der Leyen and Trump agree trade deal
In a statement released this evening, Taoiseach Micheál Martin said the agreement “brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world.
“That is good for businesses, investors and consumers. It will help protect many jobs in Ireland.
“The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work.
“We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here,” said Mr Martin.
Pharma included in 15% tariff rate, says Von der Leyen
Earlier, Mr Trump said pharmaceuticals would not be part of the deal struck today, adding that pharmaceuticals had to be made within the United States.
However following the meeting, Ms Von der Leyen said: “We have stabilised on a single 15% tariff rate for the vast majority of EU exports. This rate applies across most sectors, including cars, semi-conductors, pharmaceuticals. This 15% is a clear ceiling. So no stacking. All inclusive.”
Sinn Féin’s spokesperson on foreign affairs and trade, Donnchadh Ó Laoghaire, said: “There is considerable confusion already about pharmaceuticals, obviously a key industry from an Irish point of view, but Trump and Von der Leyen are saying contradictory things.”
Labour Party leader Ivana Bacik said: “Continued uncertainty around pharmaceutical exports, one of Ireland’s most important sectors, highlights just how difficult it is to engage constructively with the Trump administration.”
Police snipers positioned on the roof of the Trump Turnberry hotel today
The trade agreement came as the clock ticked down on a deadline of 1 August for the European Union to strike a deal with Washington – or face an across-the-board US levy of 30%.
“We have reached a deal. It’s a good deal for everybody,” Mr Trump told reporters following the high-stakes meeting with Ms Von der Leyen at his golf resort in Turnberry, Scotland.
Mr Trump told reporters the deal involved a baseline levy of 15% on EU exports to the United States – the same level secured by Japan – including for the bloc’s crucial auto sector, which is currently being taxed at 25%.
“We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15%,” Mr Trump said.
He also said the bloc had agreed to purchase “$750bn worth of energy” from the United States, as well as $600bn more in additional investments in the country.
Ms Von der Leyen said the bloc would buy “significant” levels of energy from the US, replacing Russian sources.
“Purchases of US energy products will diversify our sources of supply and contribute to Europe’s energy security. We will replace Russian gas and oil by significant purchases of US LNG, oil and nuclear fuels,” she told reporters.
Negotiating on behalf of the EU’s 27 countries, Ms Von der Leyen’s European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.
“It’s a good deal,” the EU chief told reporters, sitting alongside Mr Trump following their hour-long talks.
“It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic,” she said.
The EU has been hit by multiple waves of tariffs since Mr Trump reclaimed the White House. It is currently subject to a 25% levy on cars, 50% on steel and aluminium, and an across-the-board tariff of 10%, which Washington threatened to hike to 30% in a no-deal scenario.
Brussels has been focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy – with retaliation held out as a last resort.
But the deal as outlined by Mr Trump appeared to fall short of EU expectations.
The bloc had been pushing hard for tariff carve-outs for critical industries from aircraft to spirits, and its auto industry, crucial for France and Germany, is already reeling from the levies imposed so far.
Any deal will also need to be approved by EU member states – whose ambassadors, on a visit to Greenland, were updated by the commission this morning. They were set to meet again after the deal was struck in Scotland.
