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.
