GOVERNMENT MINISTERS HAVE indicated they believe a trade war between the United States and European Union can still be avoided despite US President Donald Trump’s threats.

Ireland would be one of the most vulnerable European countries to the tariffs that Trump has threatened to impose on the EU. 

One of his latest orders has been the imposition of a 25% levy on steel and aluminium imports into the US from 12 March.

The Irish government is eager to try to take all necessary measures to prevent a trade war erupting between the EU and US.

Tánaiste and Minister for Foreign Affairs and Trade Simon Harris attended a virtual meeting today of trade ministers from EU member states, as well as EU Trade Commissioner Maroš Šefčovič, to discuss EU-US Trade Relations.

Speaking after the meeting, the Tánaiste said: “I welcome this essential cooperation and information-sharing with my EU counterparts and the Commission. This is an evolving situation and we will be keeping in close contact in the coming days and weeks.

“It was encouraging to hear about the engagement with the US that has started and to know that further meetings are planned. There is a window for negotiation ahead of the 12 March deadline,” he said.

“Ireland is keenly aware of the perils of further escalation. We consider that it is in our collective interests that we seek to work with the new administration and to highlight the powerful, mutual benefit of the transatlantic relationship.

“Most importantly, EU Member States are united and the EU Commission is fully mobilised to protect European economic interests.”

Also speaking today, Minister for Finance Paschal Donohoe said that the EU-US trading relationship had made “both of those economies richer over time” and a trading dispute “will cause harm to us all”.

“While of course Europe will have to respond to any measures that are taken through tariffs that adversely affect our exports, we are better off engaging with each other and negotiating with each other to try and reach outcomes that are mutually beneficial,” Donohoe said.

“We will be using our voice to make the case for trade to be mutually beneficial, talking about how Irish companies are employing Americans, Irish companies are investing in America, and that is to the benefit of both of us,” he said.

Donohoe said that balancing trade with the US “in more natural ways” could be considered.

“When any massively, globally significant economy like the United States of America indicates that they’re considering tariffs – and in some cases, has actually applied them – of course, policymakers in other parts of the world will have to respond back,” he said.

“If there are opportunities for that to be balanced in more natural ways through the purchases of goods and services from America, then that’s something that could be considered.

However, asked what products Ireland and the EU would start buying more of from the US, he said: “I couldn’t identify at this point what the potential products could be.”

Additional reporting by Press Association