We must be working for de-escalation over tariffs, says Harris

By Cillian Sherlock, PA

The EU does not want to get into “tit-for-tat” tariffs with the US, the Tánaiste said, as he appealed for calm and de-escalation.

Simon Harris travelled to Luxembourg on Monday for an extraordinary meeting of EU trade ministers focused on US tariffs.

Last week, President Donald Trump announced a 20 per cent tariff on imports from the EU, with some limited exceptions.

This followed previous announcements of tariffs on aluminium and steel, and on the automotive sector.

Mr Harris said there is a need for a calm and measured response, adding that the Irish Government will keep supports for businesses “under review”.

Asked about the Irish position on including tariffs on US tech and digital services in the EU response, he said: “If you were to get into that space, it would be an extraordinary escalation at a time when we must be working for a de-escalation.

“It is in many ways the nuclear option if you start talking about the use of the anti-coercion instrument (ACI) and the likes.

“So what we need to do here is, step by step in a measured way, consider how best to respond.”

Mr Harris said it is “certainly not” the majority view of member states to use the ACI right now, adding that the focus is on responding to steel and aluminium tariffs and arriving at a position of negotiation.

On the response to steel and aluminium taxes in particular, he said he has written to the European Commission about Ireland’s concerns over the potential reintroduction of an EU tariff on US bourbon imports.

Mr Trump has previously threatened a 200% tariff on EU spirits if such a measure is taken, which would significantly affect the Irish drinks sector.

Mr Harris questioned the “strategic relevance” of targeting US bourbon, adding that the EU list of countermeasures to the steel and aluminium tariffs has yet to be finalised.

 

Mr Harris said the EU countermeasures to steel and aluminium have to be seen as “very small and measured” when compared with the full quantum of US tariffs on the bloc.

Pressed on whether the EU will have to include services to achieve an equal response to the wider, sweeping tariffs, Mr Harris said the bloc’s position is not to “get into tit-for-tat”.

“It’s not to accept that where we are now is the inevitable outcome, and actually seek to engage.”

He added: “I really think economics is on our side here. And no matter who’s in the White House, no matter what anybody’s ideological view is, a trading relationship of 1.6 trillion euro between the European Union and the United States of America really matters.

“And we’re beginning to already see the US markets – and I think people in the United States themselves – begin to convey that to their administration.”

Mr Harris stressed the strength of the European unit in response to the tariffs, adding: “It is important to stay calm here. It is important to take this step by step.”

Mr Harris will travel to Washington DC on Tuesday for engagements with the US administration.

“Anything that I say in Washington in the coming days will be in support of the European Union efforts to get to a place of engagement and negotiation,” he said.

 

“I really believe that if people get around the table, a way forward can be found.

“This is a trading relationship that matters, and Europe has been very clear. We’re up for a deal.”

He added: “The outstanding question is, is the United States up for one? And what we have to consider here today is what can we do strategically to help further increase our own leverage to get the United States around the negotiation table?”

Asked about supports for heavily-affected sectors, Mr Harris said the EU is going to have to “accelerate conversations around competitiveness and productivity”.

He said Ireland will keep the matter of supports “under review” but said no scheme could mitigate the damage of the tariffs being implemented by the US.

The Foreign Affairs Council on Trade will also discuss EU-China trade relations in the context of the tariffs.

Mr Harris said the bloc should not close itself off to trading with China.

“A trade war is in no-one’s interest. While we are disappointed that we have reached this point, we must continue dialogue and negotiation. There is always time to strike a deal.”