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Why did the EU sign a tariff deal overwhelmingly favourable to the US? – The Irish Times

by Lucas Fernandez – World Editor July 31, 2025

written by Lucas Fernandez – World Editor

EU, US Strike Tariff Deal Amid Trade Tensions

New 15% Levy on EU Goods to US, Avoiding Higher Rates

The European Union and the United States have finalized an agreement on tariffs, with the EU agreeing to a 15% levy on most goods exported to the US. This deal averts the threat of significantly higher tariffs that President **Donald Trump** had previously considered, but it places an unequal burden on European exporters.

Unequal Trade-Off in New Agreement

Under the terms of the pact, US goods imported into the EU will not face similar tariffs. The agreement also includes a commitment from the EU to purchase substantial volumes of liquefied natural gas and other energy resources from the United States. This arrangement is largely seen as favoring **Trump** and the US, with the EU making significant concessions to prevent a wider trade conflict.

“It is overwhelmingly favourable to Trump and the US. The EU made many concessions as the price of avoiding a fight that could have spun into a devastating trade war.”

—world-today-news.com Analysis

The European Commission, represented by President **Ursula von der Leyen**, has defended the deal as the best possible outcome under the circumstances. However, from Ireland’s perspective, the 15% tariffs represent a setback. The Irish government had advocated for a swift resolution to mitigate months of economic uncertainty.

Pharmaceutical Sector Faces New Import Taxes

A key area of discussion during the negotiations involved pharmaceutical products. This sector is a significant contributor to Ireland’s trade with the US, thanks to the presence of major manufacturing facilities. While these goods have so far been exempt from US import taxes, the new agreement will cap any future tariffs at the 15% rate.

The pharmaceutical industry accounts for a substantial portion of Ireland’s exports to the US, with companies like Pfizer and Eli Lilly operating significant plants in the Republic.

Limited EU Gains in Tariff Negotiation

In return for the EU’s concessions, the benefits for the bloc appear limited. Tariffs previously set at 27.5% on EU-made cars will be reduced to the general 15% rate. The deal does, however, offer some exemptions for aircraft parts, providing a welcome reprieve for Ireland’s vital aviation industry. Efforts are ongoing to broaden these exemptions to include other sectors, such as whiskey and wine producers.

The imposition of tariffs by the US has led to a decrease in trade for affected nations. For instance, a 2018 study found that tariffs imposed by the US on steel and aluminum imports led to a 13% decrease in bilateral trade with affected countries in the year following their implementation (Peterson Institute for International Economics 2018).

July 31, 2025 0 comments

World

Macron expresses ‘very strong disapproval’ of Trump’s tariff threat as EU leaders react – The Irish Times

by Lucas Fernandez – World Editor July 13, 2025

written by Lucas Fernandez – World Editor

Trump’s Tariff Threat Ignites EU Fury, Trade War Looms

A trade war between the United States and Europe appears increasingly likely after former president Donald Trump threatened to impose a 30% tariff on goods from the European Union. European leaders are now weighing retaliatory measures.

EU Leaders Respond with Outrage and Resolve

The sudden tariff announcement upended months of negotiations between the EU and Washington, intended to de-escalate trade tensions. Ursula von der Leyen, president of the European Commission, affirmed the EU’s commitment to seeking an agreement before the August 1st deadline, but also vowed to “take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Echoing this sentiment, European Council president António Costa declared on social media that the EU “remains firm, united and ready to protect our interests.” The EU had anticipated a possible 10% tariff, but the 30% levy came as a shock.

France Calls for Retaliation

Emmanuel Macron of France expressed “very strong disapproval” of the tariffs, stating that the negotiations had been conducted “in good faith.” He urged the European Commission to mobilize all available instruments to respond, as France has been a leading voice advocating for retaliatory tariffs against the United States if a deal cannot be reached.

Additional voices calling for retaliation included Brando Benifei and Bernd Lange, both of the European Parliament. Benifei urged the EU to immediately prepare credible countermeasures on goods, services, and intellectual property rights, effective August 1st without an agreement. Lange decried the tariffs as an “outrage”, urging the EU to use its economic strength to counter “unfair trade practices.”

However, not all European leaders are aligned. Giorgia Meloni of Italy cautioned against escalating the situation, stating that it would make “no sense to spark a trade war between the two sides of the Atlantic.” She urged negotiators to avoid polarizations.

Economic Impact and Uncertainty

Experts warn of significant economic consequences. Dan O’Brien of the Institute of International and European Affairs, noted that a 30% tariff would have “a significant trade destruction effect.” According to a recent report by the European Parliamentary Research Service, tariffs imposed by the U.S. and China could reduce the EU’s GDP by 0.4% by 2030 (EPRS 2018).

The threatened tariffs create uncertainty for exporters, including German carmakers, Italian wine exporters, and Irish pharmaceutical companies. Hildegard Müller, head of the German carmakers’ lobby group VDA, called the tariffs “regrettable” and urged a swift resolution. She noted that existing tariffs were already harming German automakers.

Mexico Expresses Confidence in Reaching a Deal

Despite also facing potential tariffs, Mexican president Claudia Sheinbaum voiced confidence that Mexico would reach an agreement with the U.S., citing previous experience in navigating trade negotiations.

With the August 1st deadline approaching, the world watches to see if a trade war can be averted, or if the United States and Europe are headed for a prolonged period of economic conflict.

July 13, 2025 0 comments

World

Three-week extension for EU to negotiate US trade deal – The Irish Times

by Lucas Fernandez – World Editor July 7, 2025

written by Lucas Fernandez – World Editor

EU, US Granted Extension to Avert Trade War

Deadline pushed back to August 1st as negotiations continue under threat of tariffs.

Hoping to avoid an escalating trade war, the **European Union** and the United States have been granted three more weeks to negotiate an agreement. Discussions have intensified to secure a deal before tariffs are imposed.

Extension to Avoid Impending Tariffs

Negotiators were in a rush to come to a preliminary agreement that would prevent crippling import duties threatened by former US president **Donald Trump**. The original deadline of July 9th has now been extended.

**Simon Harris**, Tánaiste and Minister for Foreign Affairs, announced that the deadline has been moved to the beginning of August. “My understanding is that we can now expect an extension of the current status quo until August 1st to give further time for the EU and the US to reach an agreement in principle on a mutually beneficial agreement that works for both sides,” **Harris** stated.

Trump’s Trade War Tactics

**Trump** has been using tariffs as leverage to gain concessions from countries worldwide, swiftly assembling trade agreements. Since early April, European businesses have been paying 10% tariffs on goods sold to the US, with higher tariffs on steel and automobiles.

Talks have been underway for the past three months seeking a deal to prevent even higher tariffs on EU products. According to the U.S. Trade Representative, the U.S. goods and services trade deficit was $884.3 billion in 2023 (USTR.gov).

Hopes for a Mutually Beneficial Outcome

The government is cautiously optimistic that an agreement will be reached, **Harris** noted. “It remains the position of the EU and the Irish Government that we would like to conclude discussions on a trade agreement before August 1st,” he added.

Last week, the **Trump** administration proposed tariffs of 17% on EU agricultural products, food, and drink imports, potentially harming Ireland, France, and Italy. These threats occurred during meetings between EU trade commissioner **Maroš Šefčovič** and US counterparts in Washington. EU officials are expected to challenge this proposal.

**Ursula von der Leyen**, president of the European Commission, briefed Taoiseach **Micheál Martin** on the status of tariff negotiations during a recent phone call. The European Commission is facing pressure from Germany and other states to finalize a deal quickly. “We’re now at the beginning of the end-game, at least for an agreement in principle,” a commission spokesman stated.

Since taking office, **Trump** has initiated a global trade war, disrupting financial markets and causing policymakers to scramble to protect their economies through deals with the US and other countries. The new August 1st date provides countries with a three-week reprieve.

**Trump** also mentioned imposing 25% tariffs on imports from Japan and South Korea, effective August 1st, citing that the US goods trade deficit with both countries was a “major threat to our economy and indeed our national security.” He plans to announce tariff rates for dozens of other trading partners soon.

July 7, 2025 0 comments