Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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142. To ask the Minister for Foreign Affairs and Trade to provide an update on the Government's position in relation to potential increased tariffs; and the preparations it is making for same. [57181/25]

Simon Harris (Wicklow, Fine Gael)
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On 21 August the EU and the US published the Joint Statement on an EU-US Framework Agreement on Reciprocal, Fair and Balanced Trade.

The deal confirmed a single 15% tariff on EU goods, inclusive of current MFN rates. It also made absolutely clear that any new tariffs announced by the US under its Section 232 investigation – including on pharmaceuticals – would be capped at this level. This remains the case and underlines again the value of the agreement reached in August. This clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for Irish and European economic operators.

In advance of the publication of the Joint Statement I had significant engagement with EU and US interlocutors including US Commerce Secretary Lutnick and Trade Representative Greer, EU Commissioner Šefcovic and many of my European counterparts.

The Joint Statement also includes lower tariff rate carve outs for aircraft and aircraft parts, automobile and automobile parts, with further carve outs to be determined for certain products in generic pharmaceuticals and chemical precursors. These tariff rates will be at the pre-existing US MFN rate, most of which are zero. This is welcome.

The Joint Statement provides a degree of stability and certainty in what has been a very difficult period for Irish and European exporters to the US. However, we also are acutely aware of the impact of higher tariffs and the existing difficulties that many Irish exporters have already faced this year, as well as possible implications for the all island economy.

Importantly, the Joint Statement leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest. Ireland’s is now working with the European Commission to see what exemptions can be made in areas of interest for Irish exporters, including spirits and medical devices.

I have and will continue to engage intensively with these sectors and others in order to understand their concerns and see what Government can do to support them. In addition I will continue to convene meetings of the Government Trade Forum which brings together members from across Government, as well as from bodies representing employers and employees, to discuss the implications of US tariffs and the new transatlantic trade and investment relationship.

The new international trading reality also brings into sharp focus the imperative for Ireland and the EU to diversify our markets with new global partners. While we want to continue to do business with the US and indeed want to grow business, it is important that we take every opportunity to identify these new markets. The Government Action Plan on Market Diversification was published on 25 August and seeks to support this.

We must continue to control what we can control in order to continue to make our country, and our European Union, as competitive as possible, as good a location as possible for investment and job creation.