The decision by Donald Trump to impose tariffs on all foreign cars exported to the US is “deeply regrettable”, says Michael McGrath.
The US has announced that new tariffs will apply from next week. They include a 25 percent tax on cars, but Ireland and the EU is braced for Trump to broaden his attack to cover more industries.
“This is a deeply regrettable announcement by President Trump. Tariffs are taxes. They are bad for businesses, for consumers and also for workers”, said Ireland’s European Commissioner, Michael McGrath.
The tariffs would come into force on 2 April. The same day, Trump is expected to announce wider tariffs on the European Union.
Ireland is particularly concerned that the US may take aim at the pharmaceutical sector.
“Ireland was very smart. We love Ireland. But we’re going to have that”, Trump reportedly said.
The EU is preparing to respond with counter measures, according to an EU spokesperson.
“We are prepared to safeguard our European interests and if necessary we will deliver firm, proportionate, robust and well calibrated and timely response to any unfair and counterproductive measures from the US”, said European Commission trade spokesperson, Olaf Gill.
“I want to emphasise once again that our priority here is to find a negotated solution, a solution that works for both sides, the EU and US, a solution that strengthens our trade and economic relationship which is by any distance the most valuable and important in the world.
“We want to build that relationship up, not tear it down and we believe that the measures announced by the US go in completely the wrong direction.”
The EU’s Trade Commissioner, Maroš Šefčovič, was in Washington this week. The EU was upbeat about those talks.
An EU source said at the time that they were still talking about the possibility of “reaching a negotiated solution to US concerns while looking after EU interests”.
But today the European Commission admitted the talks had failed to convince the US to back down.
“Those discussions will continue”, Michael McGrath insisted.
“We are expecting that there will be a further announcement by the Trump administration next week, and the European Union stands ready to respond. So we are ready to engage and have further dialogue. But this does not prove successful, then we will need to respond to protect European businesses.”