EU and US could reach framework trade deal this weekend - EU officials
Thomson Reuters
The European Union and the United States could reach a framework deal on trade this weekend, ending months of uncertainty for European industry, EU officials and diplomats said on Friday.
The deal would likely include a 15 per cent baseline tariff on all EU goods entering the United States and probably a 50% tariff on European steel and aluminium, the officials and diplomats said.
US President Donald Trump on Friday said there was a 50/50 chance or perhaps less that the United States would reach a trade agreement with the European Union, saying Brussels wanted to "make a deal very badly".
"I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU," he said.
Tánaiste Simon Harris said the EU is preparing for all eventualities - as the bloc has agreed €93 billion worth of counter tariffs against the United States.
Officials are hopeful a deal could be reached to establish a 10 to 15 per cent tariff on Irish goods heading into America - after Japan secured a similar arrangement.
The Government said agri-food products like molasses, pure bred horses and sugar have been removed from the counter tariffs - a benefit to Ireland of €33 million, should they go ahead.
Harris a deal with the US is still the best outcome - but countermeasures are ready to go
"It says to America we want a deal, but it also says we're preparing for all eventualities," he said.
"You need to trade with us as well, it's in the interest of the United States to do business with Europe.
"So let's now get back to the table here, let's get a deal over the line, but let Europe to continue to prepare for all eventualities."
Seamus Coffey from the Irish Fiscal Advisory Council believes even a 15 percent tariff on pharmaceutical products would have an impact.
"With this added uncertainty they might look to change their supply chain, have more production in other areas," he said.
"They can do that pretty quickly and even Donald Trump has admitted that and saying that he was giving the pharmaceutical up to two years to change.
"But if this 15 per cent was to come in in early August, that would have a big impact on pharmaceutical exports from Ireland."
