With a 15 per cent baseline tariff on EU exports to the US, this week's long-awaited trade agreement between US president, Donald Trump and European commission president, Ursula Von Der Leyen isn't "ideal" but it offers some much-needed clarity, said Galway Chamber.
While news of the tariff deal being struck was welcomed both at home and abroad, dramatically lessening a potential trade war between two of the world's biggest economic powers, Brussels has been accused of capitulating to the US president, resulting in a deal which primarily suits only one party, and it isn't the Europeans.
At the core of the deal is a 15 per cent baseline tariff on EU exports to the US. The exception to this is EU steel, which will continue to be taxed by 50 per cent. As a result, all medicines imported from the EU are set to be taxed by 15 per cent from Friday, provided the agreement is implemented as planned in the US.
Trump's criticism of Ireland's historical low-tax policies, which are largely responsible for luring US medical multinationals to our shores, has been frequent in recent months, with Trump's tariffs being implemented as part of his stick-heavy, carrot-absent approach to bring pharmaceutical production back to the US.
Home to several industry leaders, Galway's skin in this fight has been substantial, to the degree that news of the agreement was met with an approach that can be summarised as "not good, but could be worse".
In response to the tariff agreement, Galway Chamber said, "This agreement allows our exporting members to move forward, reassess their strategies, and re-engage with key markets with greater certainty. However, challenges remain, and some key sectors still face serious headwinds.
"While resilience, diversification, and smart adaptation will be key, government support will be required to support affected industries as they navigate the situation."
Ian Talbot of Chambers Ireland called for a unified approach from the EU and the Irish Government, saying, “Efforts should be made to help businesses to adapt. The EU and Irish Government should work to create a fund to support viable businesses adapt to new tariffs and also to ensure potential arbitrage issues with Northern Ireland are clearly understood and addressed.”
