EU-US Trade Deal Impact on Irish Exporters

A trade deal between the European Union and the US could see certain Irish exporters at the same position as they are now, an economist has said.

The transatlantic deal includes a 15% tariff on EU goods entering the US and significant EU purchases of US energy and military equipment, bringing welcome clarity for European companies.

However, the baseline tariff of 15% has been criticized as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal.

The deal came after European Commission President Ursula von der Leyen traveled to Scotland for talks with US President Donald Trump to push the agreement over the line.

Deloitte Ireland Chief Economist Kate English told RTÉ's Behind the Story podcast that a zero-for-zero deal was unlikely to happen.

She mentioned that if a deal wasn’t reached by August 1st, tariffs of 30% or more from the US would have led to retaliatory tariffs by the EU, which she believes would have been catastrophic for the Irish economy and consumers.

While 15% is not ideal, Ms. English emphasized the importance of having an agreement that allows businesses to plan.

She also mentioned the possibility of expanding the zero-for-zero tariff list and highlighted the example of Kerrygold facing a 16% tariff into the US.

Ms. English explained that the new 15% rate is not on top of any existing rates, potentially putting Irish exporters in a similar position as before.

For more insights, you can listen to Behind the Story on the RTÉ Radio Player, Apple, or Spotify.