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EU RETALIATORY TARIFFS that were listed during the last Donald Trump administration “might not be the right ones this time”, Tánaiste and Minister for Trade Simon Harris has said.
Last week, Trump threatened to impose a 200% tariff on all wines and other alcoholic products, including Irish whiskey, from the EU if the bloc does not scrap its planned tax on a number of US products, such as bourbon, boats and motorbikes.
The move by the EU followed US tariffs on steel and aluminium import.
The French Prime Minister Francois Bayrou said over the weekend that the European Union was probably mistaken in targeting American bourbon in its retaliation to US tariffs.
When asked about the French prime minister’s comments, Harris said he welcomed the fact that there “is an openness now” to looking at the list of retaliatory tariffs proposed by the EU.
“The sense at the start was whatever was on the list, the last time [during the first Trump administration], would automatically be rolled over. There seems to be an openness now at the European Commission to having a conversation about that. And I welcome that,” he said.
He went on to state that any countermoves should always be strategic.
Previously, there was a tit-for-tat tariff lists between the EU and the US between 2018 and 2020.
One list of tariffs came into effect immediately in June 2018, while another set were scheduled to come into force in June 2021. However, as a result of negotiations, the EU suspended all measures until 31 March 2025.
When Trump announced he was moving ahead with steel and aluminium tariffs, the EU responded with announcing the reimposition of the suspended 2018 and 2020 tariff lists.
“The retaliatory tariffs the last time might not be the right ones this time,” said Harris.
“And secondly I am conscious of the importance of the drinks industry to Ireland. We should be careful though, not to get picked off sector by sector here. It is whiskey today, a very important sector, I am not doubting that. But something else tomorrow. The broader thing that Ireland should be doing is saying that tariffs are bad,” said the Tánaiste.
Eoin Ó Catháin, Director of the Irish Whiskey Association, welcomed the Tánaiste’s comments.
“I hope that he will continue to press for the removal of US bourbon from the European Commission retaliatory list ahead of the April 2 deadline, and that he will have the government support him in this. Including US Whiskey/Kentucky bourbon is not strategic – for example, Ireland exports 53 times more Irish Whiskey than we import bourbon. We agree that tariffs do not work for anyone – and this is a position we share with our US counterparts. We’ve enjoyed tariff free trade since 1997, why risk it now?”
EU trade chief Maros Sefcovic said last week that he hoped to “move forward” with the United States in de-escalating its growing trade conflict with the bloc.
Harris has warned of turbulent times ahead, stating there could be instability until an agreement is reached between the EU and US.
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