Taoiseach thinks EU will have to negotiate with US on tariffs for ‘stability’

Taoiseach Micheál Martin has said that the EU will have to negotiate with the US to see “stability” brought back to the world economy following US president Donald Trump’s widespread tariffs.

Speaking to The Echo yesterday, Mr Martin said that the European Commission will “in all likelihood” produce a list of counter measures with the aim of alleviating pressure imposed by the 20% tariff on imports from the EU, which was announced last week.

“I believe we should engage with the US, [and that] the EU should be transparent in terms of what could happen,” said Mr Martin.

“In other words, the [European] Commission will, in all likelihood, produce a list of potential countermeasures.

“They must be designed strategically and, insofar as possible, not bring more damage onto the European economy.

“The only way to ease the carnage on the stock markets is for a negotiated pathway between the US and the EU,” he added.

Mr Martin said it would be a “signal for stability” if the EU and the US could “engage in negotiations to get to a reasonable settlement in these circumstances”.

“A trade and tariff war would damage everybody — already the world economy is being damaged, already investments are being paused, so it is not good for the world economy.

“Europe has the resources to respond, and will respond, but ultimately it has to be a negotiated pathway if we want to see stability brought back to the world economy.”

Tánaiste Simon Harris, who travelled to Luxembourg yesterday to attend a meeting of EU trade ministers, said that the EU does not want to get into “tit-for-tat” tariffs with the US. He said that there is a need for a calm and measured response from the EU, and that the Irish Government will keep supports for businesses “under review”.

“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 between the EU and the US really matters,” said Mr Harris.

“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.

“It is important to stay calm [and] to take this step by step.”

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

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

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