Martin warns over prospect of ‘extremely disruptive’ 50% US tariff on EU goods
By David Young, PA
US president Donald Trump’s threatened 50 per cent tariff on all EU imports would cause extreme disruption to the global economy, the Taoiseach has warned.
Micheál Martin said the move by Mr Trump had come as a “surprise”, noting that the EU was engaging in “good faith” with the United States to agree a deal on trade.
In April, President Trump announced a 20% tariff on EU goods being sold into the US. He later reduced that to 10% until July 8 to allow for time for talks with Brussels on a potential agreement.
On Friday, Mr Trump claimed the talks were “going nowhere” and said he was recommending that the 50 per cent tariff rate comes into effect on June 1st.
The president also announced he would be imposing a 25 per cent tariff on all Apple iPhones manufactured outside the US. He warned that tariffs were also coming for other foreign manufactured smartphones.
Shares fell in the US, EU and UK following Mr Trump’s latest threats on tariffs.
Mr Martin warned of the consequences if such levels of tariffs were imposed.
“This is a surprise, because there was a pause until early July,” he told RTÉ.
“Everybody in the European Union is acting in good faith and wants a negotiated settlement with the United States.
“The trading relationship between the European Union and the United States is the most dynamic and largest in the world, so tariffs of that height or scale would be extremely disruptive and would create even wider disruption across the global economy.”
Tánaiste and Foreign Affairs Minister Simon Harris said Ireland and the wider EU shared the same position in wanting a “substantive, calm, measured and comprehensive dialogue with the United States”.
“Tariffs are a bad idea,” said the Tanaiste.
“They’re bad for Ireland, the EU, and the US. They push up prices for consumers and businesses. We have built a relationship of prosperity, jobs and investment based on working together and trading together.
“Negotiations remain the main focus for both the EU and Ireland and our deep and enduring relationship with the United States merits a more sustained and substantive engagement in the period ahead in a bid to bring about a negotiated settlement.
“I continue to keep in close contact with the European Commission, with colleagues across the EU and with industry as we continue to seek to navigate the current challenges. A negotiated solution remains very clearly the goal and the preferred outcome.”