THE collective response of the European Union to American trade tariffs could exceed €400 billion in duties on US goods. Ireland would formulate part of this bloc.
The move is understood to be a retaliatory measure for newly-imposed US tariffs of 25% on steel and aluminium, 25% on European car and autoparts exports, as well as another 20% on most other EU exports to the United States.
The European Commission is due to publish the list of products effected by their response with member states voting on Wednesday. Despite the appearance of Europe making drastic moves, the Commission says it will wait until the full economic impact of US-imposed tariffs has been realised before looking at an expanded list of reciprocal measures.
Tánaiste Simon Harris will also attend an emergency meeting of EU trade ministers in Luxembourg, following a catastrophic slump in global markets. In the last 24 hours, Asian markets plunged to their worst level since 1997 and the London FTSE is down by almost 5%.
EU ministers will likely focus their efforts on how best to respond to the 25% tariffs President Donald Trump has imposed on European steel and aluminium, as well as to 20% tariffs on all other EU exports to the US.
A 99-page list of US products has been doing the rounds among the European Commission outlining what could potentially be hit. Ireland, France and Italy are said to be lobbying for the removal of US bourbon from this list following Mr Trump’s threat to hit European wine and spirits with his own 200% tariff.
The final package will be voted for on Wednesday, during which Mr Harris promised to bolster Irish commitment to the EU. The Tánaiste called the prospective move a firm, proportionate response, but said that work was being done behinf the scenes to reach a practical solution.
Meanwhile, US Treasury Secretary Scott Bessant told reporters that some 50 countries had been in contact with the Trump administration since last Wednesday seeking negotiate with Washington to reduce tariffs. President Trump, he said, had maximum leverage on the issue.
In response, EU Trade Commissioner Maroš Šefčovič said that he had a ‘frank exchange of views’ on Friday with US Commerce Secretary Howard Lutnick and Trade Secretary Jamieson Greer. There is no immediate suggestion of any reversal by the Trump administration.
See More: Donald Trump, EU, Simon Harris, Tánaiste, US Tariffs
