Tariffs 'a clear setback' as business leaders fear impact on Cork

Cork business leaders have expressed fears that the 15% tariff deal reached between the EU and the US will leave Cork companies exporting whiskey and pharmaceuticals Stateside at a competitive disadvantage in relation to their counterparts in Northern Ireland and Britain.

The deal reached at US president Donald Trump’s golf resort in Turnberry in Scotland came just before an August 1 deadline for the imposition of a 30% tariff which Mr Trump had threatened earlier this month.

While there was relief being felt in Dublin and other European capitals that the 30% tariff was avoided with this deal, there has been a significant amount of criticism directed at EU Commission president Ursula Von der Leyen and the Commission’s negotiating team that the tariff ended up at 15%. This is 5% above the 10% tariff imposed earlier this year.

According to Cork business leaders, the clarity and stability generated by an agreement was to be welcomed but had come at a high cost.

Clear setback

Cork Chamber CEO Conor Healy described the imposition of tariffs of this level as “a clear setback”.

“Additionally, we remain concerned that critical sectors such as spirits and pharmaceuticals, vital to the Cork and national economy, are still not adequately addressed within the agreement,” he said.

“Irish businesses in these industries continue to face uncertainty around tariff thresholds and future treatment and, without a clear roadmap, they are at risk of delayed investment, disrupted planning, and weakened global competitiveness,” he added.

“It places an additional burden on businesses that are already navigating complex global supply chains, inflationary pressures, and evolving regulatory environments. While we are still waiting on the details of the agreement, it is difficult to see many positives for the EU.

“EU goods will face a 15% tariff entering the US, compared to a 10% rate secured by the UK, which will put Irish exporting businesses at a real disadvantage in the context of an all-island economy.”

Vulnerable

Mr Healy said that the impact of these tariffs would be felt “unevenly across sectors” but that small and medium enterprises as well as large exporters would be vulnerable.

“They will require targeted support measures to manage the increased cost of doing business, to explore alternative markets, and to sustain employment,” said Mr Healy.

“The role of our State agencies and diplomatic network will be crucial in assisting companies to adapt and reposition.

“At an EU level, the European Commission must move forward with new trade agreements to provide improved access to key international markets.”

Concern

Cork Business Association president Dave O’Brien described the proposed agreement as “positive” as it brought stability and certainty to businesses, but he expressed concern at the higher cost of exporting goods to America.

“It will make it more expensive for companies to sell into the US but the tariff should be low enough to ensure US multinationals remain in Ireland, thus protecting jobs here.”

Taoiseach Micheál Martin has said no one is welcoming a baseline tariff of 15% “with open arms” but the EU-US agreement avoids a “ruinous” trade war.

Mr Martin also said the deal offered “overall ceilings” on tariff rates and would mean they are not “stacked” upon one another.

Enterprise Minister Peter Burke said a 30% tariff would have closed the US market to goods from Ireland, as he welcomed the agreement at 15%, which he described as the maximum rate.

“I think the president of the commission has been very clear that 15% will be a ceiling,” he said.

Business group Ibec said although the uncertainty may be dissipating, the agreement was “punishing” for Europe.