SECRETARY OF STATE for Northern Ireland, Hilary Benn, has said that the UK government’s approach to US trade tariffs will be ‘calm and considered’. This follows the conduction of an impact assessment on how businesses in Northern Ireland are likely to be effected.
Mr Benn made the comments during a House of Commons debate on the potential consequences of an impending trade war between the United States and the EU. Northern Ireland remains in the EU single market as a result of the Windsor Framework, requiring the region to impose any reciprocal EU tariffs on US imports.
Mr Benn said that it was still too early to assess the potential damage to Northern Ireland, telling MPs: “Until we know what the EU’s retaliatory tariffs are it doesn't make much sense to publish speculation about the impact.”
A tariff reimbursement scheme is currently in place, which businesses can avail of in the event that goods purchased from the US do not leave the UK.
The Secretary of State’s assessment comes in stark contrast to remarks made by First Minister Michelle O’Neill, who said that the White House was playing a dangerous game’. She added that there was the potential for a recession happening, which would have untold consequences both consumers and businesses the world over.
Ms O’Neill said that it was her role to continue dialogue with the UK and Irish governments in order to re-emphasise the ‘special circumstances’ of Northern Ireland being caught between British and European markets.
A House of Lords scrutiny committee has also raised concerns in relation to government protection for Northern Ireland in the event of a US/EU trade war. In recent days, the committee outlined these concerns in a letter to the UK government, which outlined a number of possible scenarios for Northern Ireland.
The committee pointed out that the consequences for Northern Ireland could be vastly different if, for example, the EU responds with tariffs and the UK does not, if the UK responds with tariffs and the EU does not, and if both the UK and EU respond with tariffs and the US treats each reciprocal case individually.
As things stand, goods from Northern Ireland entering the US will face a 10% tariff, as the region is bound by rules affecting the UK as a whole. Goods from the Republic of Ireland, on the other hand, face a 20% tariff as a result of its continuing role within the EU bloc.
