Simon Harris warns of ‘new challenges’ as EU prepares possible counter measures in US trade dispute

Fine Gael leader tells party meeting ‘it is clear that difficult decisions may need to be taken’

EU negotiators are frustrated with the lack of inroadsin their efforts to strike a trade deal with Donald Trump's United States. Photograph: BRENDAN SMIALOWSKI/AFP via Getty Images
EU negotiators are frustrated with the lack of inroadsin their efforts to strike a trade deal with Donald Trump's United States. Photograph: BRENDAN SMIALOWSKI/AFP via Getty Images

Tánaiste Simon Harris has warned of “new challenges” and the possibility of “difficult decisions” as the European Union prepares to publish proposed countermeasures against US tariffs in the event that negotiations fail.

On Thursday the EU is expected to announce a further range of US goods it could hit with retaliatory trade tariffs.

EU negotiators are becoming increasingly frustrated with the lack of inroads being made in their efforts to strike a deal with the US that would suspend import tariffs Donald Trump has slapped on transatlantic trade.

While market turmoil forced Mr Trump to scale back higher tariff rates he placed on most trading partners, a 10 per cent import tax on most goods sold into the US remains. Steeper 25 per cent tariffs on imports of steel and cars also remain in place.

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A 90-day pause Mr Trump announced on the higher 20 per cent blanket tariffs put on nearly all EU products is due to run out in mid-July.

Minister for Foreign Affairs and Trade Mr Harris told a meeting of the Fine Gael parliamentary party that Thursday “will bring new challenges” as the EU will be publishing its proposed list of counter measures.

Mr Harris told TDs and Senators that Dublin understands the need for the EU to undertake further internal preparations in case negotiations are unsuccessful.

He said Ireland will communicate its own “sensitivities” to the commission while adding: “it is clear that difficult decisions may need to be taken.”

Earlier this week The Irish Times reported that the retaliatory measures are expected to target the import of US goods, rather than hitting the operation of US tech multinationals.

The Government has been lobbying the commission to refrain from drawing US tech and social media giants into the trade dispute.

Cormac McQuinn

Cormac McQuinn

Cormac McQuinn is a Political Correspondent at The Irish Times