The European Union has agreed a tariff deal with the United States.
European Commission President Ursula von der Leyen and US President Donald Trump shook hands on the deal after an hour of talks at Trump’s Turnberry golf course in Scotland on Sunday.
President von der Leyen said the final talks were “tough”.
EU goods exports to the US will be subject to 15 percent tariffs. Trump said it was as low as he was prepared to go.
There will be some exemptions, for example on aircraft exports. Some details, such as what will happen about exports by Ireland’s important pharmaceutical sector are not yet clear.
Speaking after the meeting, von der Leyen said there would be 15 percent tariffs on pharma products too, but was vague as to whether Trump’s threatened additional tariffs on drugs would be imposed on top later.
“Whatever the decisions later on is of the President of the United States how to deal with pharmaceuticals in general globally, that’s on a different sheet of paper”, she said cryptically.
The tariff deal has been welcomed by the Taoiseach.
Micheál Martin said it brings “clarity and predictability to the trading relationship”.
“That is good for businesses, investors and consumers. It will help protect many jobs in Ireland”, he added.
“We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.
The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.”
Tánaiste Simon Harris said the agreement will “avoid tariffs of 30 percent being imposed by the US on 1 August and will also avoid the EU imposing its own countermeasures at this time.”
““A deal provides a measure of much needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world. Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than one trillion euros.”
Both pointed out that 15 percent tariffs was not nothing, but there is general relief that an agreement has been reached.
As part of the sweetener to get Trump on side, the EU has agreed to buy $750 billion of LNG gas and nuclear fuel from the US over three years.
“It is good that Europe and the US have reached an agreement, thus avoiding an unnecessary escalation in transatlantic trade relations”, said German Chancellor, Friedrich Merz.
“The unity of the European Union and the hard work of the negotiators have paid off.”