The European Union hopes to make a tariff deal with the US within days, according to the European Commission’s Trade Spokesperson.
US President, Donald Trump, has threatened further tariffs on other key sectors including pharmaceuticals – an important sector for Ireland – as well as semiconductors and copper.
Trump has already imposed 50 percent tariffs on EU steel and aluminium, 25 percent tariffs on cars and car parts and 10 percent tariffs on more than two-thirds of other European exports to the US.
Negotiations on a deal between the US and EU have been taking place.
It was hoped that a deal would be reached before 9 July, when a pause on wider 20 percent tariffs by the US was due to expire. Trump has now extended that deadline until 1 August.
But the EU is hopeful that a deal can be done sooner.
“We aim to reach a deal before then, potentially even in the coming days”, said the European Commission’s Trade Spokesperson, Olof Gill on Wednesday.
United States Secretary of Commerce, Howard Lutnick, has also sounded more positive about making a deal with the EU.
“European Union, to their credit, has now made significant, real offers, meaning we’re going to take down our barriers, we’re going to open our markets to American farmers, ranchers, fishermen, really open their markets, and let Americans, finally American entrepreneurial spirit finally get to sell to Europe”, he told US news channel CNBC on Tuesday.
Tánaiste says he has been briefed about the details of the deal. Earlier this week he said he was “cautiously optimistic we can reach a balanced, forward-looking agreement in principle”.
European Commission President, Ursula von der Leyen, told the European Parliament on Wednesday the EU is “looking for a reliable framework from which we can keep building our common trade.”
If a deal cannot be reached she has promised to retaliate with counter tariffs against the US.
The Irish government has been vocal in expressing its strong wish to avoid relations descending towards a trade war.