After Donald Trump’s unveiling of sweeping tariffs on Wednesday night, European Commission president Ursula von der Leyen said the European Union was prepared to respond with countermeasures if talks with Washington failed.
The US president fired the long-promised first shots in what may become a global trade war with his announcement of sweeping tariffs in front of an audience of political and business figures – including workers wearing hard hats and overalls – in the Rose Garden of the White House.
[ Trump tariffs: No justification for 20% tariffs on EU exports to US, says Martin ]
Imports into the US from the European Union will be hit with a tariff of 20 per cent, he said – which is what had been expected – while the UK will face just half that: a tariff rate of 10 per cent. Other countries will face higher tariffs.
However, material released by the White House last night suggested that pharmaceuticals may not be covered by the so-called “reciprocal tariffs”, which would be a considerable relief to Ireland.
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Mr Trump has previously said the pharma sector could be subjected to specific, dedicated tariffs, though there was no mention of this in his speech.
He said the tariff rates had been arrived at by calculating the total tariff and non-tariff barriers other countries charged US imports, and then halving that rate. He called it “kind reciprocal”. He said the EU imposed total tariff and non-tariff barriers amounting to 39 per cent on US imports.
“They rip us off. It is so sad to see. It is so pathetic,” he said.
Trump launches a trade war against the world
Last night US president Donald Trump announced tariffs on imports from dozens of countries, including Ireland and the European Union as a whole, launching a potential trade war on a global scale.Irish Times political editor Pat Leahy messaged In the News with some analysis of the significance of the moves announced by Trump and how the Irish government may respond. But first, we listen back to the main points from Trump's address.
Mr Trump held up a chart with a list of the tariffs to be imposed on various countries: China will face 34 per cent tariffs; Switzerland 31 per cent; Israel 17 per cent; Vietnam 46 per cent; Taiwan 32 per cent; Japan 24 per cent; India 26 per cent; and South Korea 25 per cent.
Mr Trump succeeded in having the entire world wait for his big reveal on what he called “Liberation Day” for the US. Just after 9pm Irish time he appeared before an enthusiastic crowd and promised: “April 2nd, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day that we began to make America wealthy again.”
In a speech that mixed rambling grievances about how badly the US has been treated with customary self-praise and a fierce bellicosity, Mr Trump said that for decades the US had been “raped and pillaged” by unfair trade practices. He condemned “foreign looters”, “cheaters” and “scavengers”.
He promised to use “trillions and trillions” of US dollars in revenue from tariffs to reduce US taxes and pay down the national debt and he pledged lower prices for ordinary Americans.
Mr Trump had promised tariffs throughout his elected campaign and has already levied tariffs on imports from China, Canada and Mexico, as well as all imports of steel and aluminium. From midnight – when all of the tariffs announced at the White House will also come into effect – a 25 per cent tariff will be imposed on all car imports into the US.
On Thursday morning, Ms von der Leyen Mr Trump’s universal tariffs as a major blow to the world economy.
“We are already finalising the first package of countermeasures in response to tariffs on steel,” she said in a statement read out in Uzbek city Samarkand on Thursday, ahead of an EU-Central Asia partnership summit.
“And we’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
She did not provide any details of future EU measures. Ms von der Leyen said she deeply regretted the US move and warned of “immense consequences” for the global economy, including vulnerable countries facing some of the highest US tariffs.
“Uncertainty will spiral and trigger the rise of further protectionism,” she said, pointing to higher consumer costs for groceries, medication and transport and disruption for businesses.
“What is more, there seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all US trading partners are hit,” she added.
Ms von der Leyen said she agreed with Mr Trump that others had taken unfair advantage of global trade rules and was ready to support efforts to reform them.
“It is not too late to address concerns through negotiations,” she said.
The EU plans to impose counter tariffs on up to €26 billion of US goods this month in response to US steel and aluminium tariffs that took effect on March 12th.
Irish goods sold in the US will now immediately become more expensive. In a statement issued on Wednesday night, Taoiseach Micheál Martin criticised the move, saying there was “no justification” for it. However, he said: “Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests. Ireland will be a strong advocate for an outcome which enhances the existing and strong transatlantic trading relationship.”
Tánaiste Simon Harris said: “I must be honest tonight that a 20 per cent blanket tariff on goods from all EU countries could have a significant effect on Irish investment and the wider economy and the impact of what has been announced is likely to be felt for some time. It represents a huge challenge to Irish exporters to the US across all sectors.
“We must remain calm and measured in our response. Ultimately every disagreement has to end in agreement and we will be continuing to advocate and argue for negotiated solutions.”
The tariffs leave Northern Ireland in a complicated position and will test the Windsor Framework, the post-Brexit trading deal agreed by the EU and UK for the North, given that the US tariff on EU imports, at 20 per cent, is twice that of the 10 per cent tariff imposed on imports from the UK.
