'A good deal for everybody': US and EU reach 15% tariff deal after Trump-von der Leyen meeting

LAST UPDATE | 19 hrs ago

TAOISEACH MICHEÁL MARTIN has welcomed a trade deal struck between US President Donald Trump and European Commission President Ursula von der Leyen this evening.

The two “reached a deal” of 15% on tariffs after meeting in Scotland in a high-stakes attempt to end a months-long transatlantic trade dispute.

“We have reached a deal. It’s a good deal for everybody,” Trump told reporters after talks with von der Leyen at his golf resort in Turnberry, Scotland.

“This is the biggest [deal] of them all.”

He told reporters in Scotland that the EU had committed to investing an extra $600 billion in the United States, as well as purchasing $750 billion worth of energy.

Von der Leyen said the “significant” purchases of US liquefied natural gas, oil and nuclear fuels would come over three years, as part of the bloc’s bid to diversify away from Russian sources.

Negotiating on behalf of the EU’s 27 countries, von der Leyen had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.

Advertisement

“It’s a good deal,” the EU chief told reporters. “It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic,” she said.

She said bilateral tariff exemptions had been agreed on a number of “strategic products,” notably aircraft, certain chemicals, some agricultural products and critical raw materials.

Von der Leyen said the EU still hoped to secure further so-called “zero-for-zero” agreements, notably for alcohol, which she hoped to be “sorted out” in coming days.

In a statement following the announcement, Martin said the agreement “brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world. That is good for businesses, investors and consumers. It will help protect many jobs in Ireland.

“We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.

“The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.

“It does mean that there will now be higher tariffs than there have been and this will have an impact on trade between the EU and the US, making it more expensive and more challenging.”

He said that despite this, it also creates a “new era of stability” that can hopefully contribute to a growing relationship between the EU and the US.

“Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many,” Martin concluded.

Related Reads

Trump says pharma tariffs could be 'like 200%', as Tánaiste expresses concern for sector

With rates set to rise next week, what is the state of play with Trump's tariffs?

Uncertainty lifts

The European Commission, negotiating on behalf of the EU’s 27 member states, has been working to salvage a trading relationship worth €1.6 trillion annually in goods and services.

European capitals have been closely involved in the process, and their diplomats are expected to quickly sign off on the agreement reached at the leadership level.

Speaking this afternoon on RTÉ’s This Week, European Commissioner Michael McGrath said that the EU was ultimately hoping for a “zero for zero” deal in which the US and the EU would refrain from adding tariffs and counter tariffs to a large group of products.

Although this was the EU’s “ideal scenario”, McGrath accepted that this was “not entirely shared”.

“The EU’s response will depend on whether or not an agreement is reached, and I think it’s not helpful to get into the different scenarios that could emerge if there is no agreement,” McGrath said, “and if the US go ahead with the 30% [threatened tariff rate] and so on, then we are ready with our countermeasures.”

Additional reporting from AFP

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More Support The Journal