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EU proposes hitting US-made planes and cars with tariffs if trade talks fail

Harris says if the countermeasures come into effect, difficult decisions may need to be taken.

EUROPEAN COUNTERMEASURES published today that could kick in if there is an escalation in the trade dispute between the US and the EU should be met with “cool heads”, according to Tánaiste Simon Harris. 

Speaking during Leaders’ Questions, Harris said he would ultimately like such countermeasures to be “ripped up” and never used, stating that he was happy to see negotiations between the EU and US have stepped up in recent days. 

The European Union countermeasures announced today will apply to a broad range products imported from the US which would be worth €95 billion with the likes of aircraft, bourbon whiskey, wine, cars, smartphones, nuts and fruit, plastics, chemicals and electrical equipment all on the list. 

Planes and autos make up some of the largest value of goods on the list, with the move to put Boeing in the firing line, which could also see knock-on impacts for the likes of Ryanair. 

Neither lumber nor pharmaceutical products are on the list as the EU wants to protect its own industries from potential retaliation. 

European Commission President Ursula von der Leyen said today that EU still wants a deal with the United States to avoid painful tariffs.

“The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” she said in a statement.

EU chief Ursula von der Leyen reiterated the bloc’s determination to reach a negotiated solution and avoid painful tariffs on both sides.

“We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” she said.

EU trade chief Maros Sefcovic stressed “we will not accept an outcome at any price”.

In a statement this afternoon, the Tánaiste said the government will be “analysing” the list over the coming days, stating that he is committed to working with stakeholders through the Government Trade Forum to understand the potential impact of these countermeasures on Ireland.  

“As we have done in the past, we will communicate Irish specific concerns to the Commission,” said Harris. 

Screenshot - 2025-05-08T121345.770 Oireachtas Oireachtas

‘Difficult decisions may need to be taken’

Last night, Harris told his parliamentary party that there is need for the EU to undertake further internal preparations in case negotiations are unsuccessful “and as we always do, Ireland will communicate our sensitivities to the Commission”.

However, he added, “it is clear that difficult decisions may need to be taken”.

Asked about the list of countermeasures and what impact such measures could have on Ireland, Harris said in the Dáil today that the list is expected to run to over 200 pages and will impact every country in the European Union. 

The list will be broad and cover a variety of areas, he said. 

However, he said that “none of this comes in any time soon”, stating that there will be a lot of consultation and engagement in the months ahead, stating “unlike President Trump, we’re not saying, ‘here’s a list and it comes in tomorrow or it comes in in 30 days’. We’re saying, here’s the list of measures we don’t want to take. We want to have them prepared though,” he said. 

Sinn Féin’s Pearse Doherty said people are living in great uncertainty and seeing costs of groceries, energy, rents and insurance costs all rise. 

He called for a cost-of-living package to form part of this year’s budget. Doherty also asked what assessment the government has done on the impact on prices and jobs that the EU countermeasures might have in Ireland. 

Protecting Ireland’s economy

“Can you assure the public that their interests and Ireland’s interests will be reflected in the EU’s response announced today and that the Ireland’s economy will be protected?” he said. 

From a negotiation point of view, Harris said the EU must negotiate “from a position of strength”.

“I think Irish people get that. You can’t go into talks with your hands swinging and ask nicely for a deal. I do think you have to say, ‘look, we want to deal, we want zero tariffs, but look, we’re a market of 460 million people here in the European Union, and we are going to look at other areas where we respond, if we have to’”.

Harris said the list will go out to public consultations to the 10 June, and more work will then get underway from the European Commission.

Speaking about the US-UK us agreement, Harris said it remains unclear if it is a full agreement so it is a matter of wait and see what emerges later today.

From his engagements with the British government and the Secretary of State for Northern Ireland, Harris said he has been “very clear” that the unique position the island of Ireland and the unique position of the North needs to be factored in to all discussions, both at the EU and US level. 

Alongside the countermeasures, the EU also announced that it plans to file a complaint with the World Trade Organisation over US President Donald Trump’s imposition of tariffs on European goods.

“The EU will also launch a WTO dispute against the US on its universal so-called ‘reciprocal’ tariffs and tariffs on cars and car parts, by formally lodging a request for consultations,” the European Commission said in a statement.

With reporting from © AFP 2025 

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