Tánaiste Simon Harris has formally requested that the EU’s trade commissioner, Maroš Šefčovič, consider exempting crucial Irish sectors—including aviation, medical, agrifood, and the equine industry—from potential retaliatory tariffs on US products, should the ongoing trade negotiations falter.
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In a letter obtained by RTÉ News, Harris emphasized the need for careful deliberation, especially given the potential impact of such tariffs on Northern Ireland. As the former Brexit negotiator for the EU, Šefčovič is positioned to understand the complexities involved. Harris wrote, “Our goal should be to shield vital sectors while ensuring that retaliatory measures do not inadvertently harm Northern Ireland.”
This correspondence lays out the Government’s stance as the deadline for a possible escalation of the trade conflict between President Trump and the European Union approaches. Recent days have seen heightened discussions between EU and US trade officials aimed at averting extensive US tariffs on European goods, which could compel a significant EU retaliatory response.
Following some volatility in bond markets, President Trump temporarily paused his proposed 20% tariffs for 90 days, extending until 9 July. Negotiations have resumed with the European Commission, spearheaded by Šefčovič, under the leadership of Trade Secretary Jamieson Greer and Commerce Secretary Howard Lutnick from the Trump administration.
Last month, Trump threatened a staggering 50% tariff on the EU, expressing frustration over the stagnant negotiations. However, this threat was rescinded following a dialogue with European Commission President Ursula von der Leyen, prompting both US and EU teams to amplify their efforts in negotiating a potential trade agreement that would mitigate the risk of mutual tariffs.
The equine industry is one of the sectors highlighted by Harris for exemption from possible tariffs.
Despite the EU preparing a list of hundreds of US product lines—valued at approximately €95 billion—earmarked for retaliatory tariffs, Harris’s letter articulates Ireland’s concerns regarding the potential detrimental effects of such measures on its economy. He stated, “I have heard significant concerns about both the immediate repercussions on imports and the possibility of further retaliatory actions from the US.” This concern is particularly pronounced in the agri-food and drinks sectors.
Harris further stressed Ireland’s pivotal role in the global aviation scene, housing Ryanair, the largest airline in Europe, alongside a leading aircraft leasing sector that relies heavily on US-made parts. “Given the limited capacity of EU manufacturers to meet demand, we must meticulously evaluate the rules of origin for long-lasting goods, like aircraft and helicopters,” he added. “Specifically, I would encourage that used aircraft be exempted from import tariffs.”
Turning to the medical technology (medtech) arena, Harris articulated concerns about its dependency on a seamless supply chain with the US. “I have engaged with stakeholders who raised alarms regarding the proposed tariff list, which encompasses around 800 lines that could affect essential medical devices for European patients,” he noted. He stressed, “It is crucial to collaborate with the medtech sector to ensure our measures do not undermine this vital industry and the life-saving technologies they deliver.”
Harris also expressed alarm over the import tariffs on animal feed, as Irish farmers heavily depend on US imports. He warned, “Escalating costs for these essential inputs could exacerbate pressures on an already strained sector and potentially lead to increased consumer prices—especially considering that Ireland accounts for all EU imports of beet pulp.”
Additionally, he raised concerns regarding the inclusion of purebred horses in the EU’s retaliatory tariff list. “The equine sector significantly supports employment in rural areas, with the US being the largest market for Irish thoroughbreds outside the UK. This trade necessitates that horses can move in both directions,” he clarified. “I believe removing these items from the list would have a negligible effect on its total worth while significantly alleviating the impact on Ireland.”
In concluding his letter, Harris stressed the importance of minimizing the negative repercussions of retaliatory measures on Northern Ireland, particularly in light of its unique post-Brexit trade status. “I urge you to consider the political sensitivity surrounding this issue, given your extensive experience from EU-UK negotiations,” he wrote.
While the Government appears relieved that neither pharmaceuticals nor dairy are affected by the proposed retaliatory measures, officials have pointed out that aircraft, spirits—including whiskey—and medical devices are included. Importantly, these measures would be enacted immediately should negotiations fail; however, they may be avoided altogether if a deal is reached.
While progress has been reported between EU and US negotiating teams, the ultimate decision on whether a trade agreement will prevent a burgeoning trade war rests with President Trump.
“Only through open communication and strategic cooperation can we navigate the complexities of this situation,” Harris remarked. “Our focus must remain on protecting our vital sectors for long-term economic stability.”
Edited By Ali Musa
Axadle Times international–Monitoring.
