Irish Premier Micheál Martin has called for the EU to adopt a "strategic approach" regarding U.S. tariffs, as he predicted challenges for the Irish spirits industry.
Mr Martin was reacting to the threat of 200% tariffs on European wine, champagne and spirits – which was raised by US President Donald Trump on Thursday, News.Az reports citing foreign media.
Mr Trump, who met the Irish premier at the White House on Wednesday, said he would impose those measures in response to moves by the European Commission, which announced it would re-introduce previously suspended tariffs on a range of US goods.
The two-way threats, which have yet to be implemented, are the latest developments in a deepening trade dispute between the US and the EU, and could significantly impact Ireland’s drinks industry.
The Commission said its countermeasures would apply to US exports worth up to 26 billion euro and come in a two-step approach of re-implementing previous tariffs from April 1 and applying new measures from later that month.
It said it was doing so in response to “new, unjustified US tariffs on EU steel and aluminium”.
Mr Trump took a hard line on the EU during his bilateral meeting with Mr Martin in the Oval Office on Wednesday, saying: “I’m not happy with the European Union, and we’re going to win that financial battle.”
The Taoiseach told reporters on Thursday that alcohol tariffs were not specifically discussed during the meeting, but added that the only way to resolve a deepening trade dispute between the US and EU is “through dialogue”.Speaking to reporters in Washington DC, he said: “Tariffs increase inflation and are not good for the consumer and are not good for business, and that is our view.
“But I do believe there will be some distance to go yet. There will be an EU Council towards the end of next week, and again, there will be discussions and consultations within the European Union in respect of European actions.
“And obviously, again, in that scenario, we’ll be endeavouring to protect Irish interests in terms of specific Irish products and Irish sectors.”
He added: “One would hope that this would settle in time, but the uncertainty does create difficulties for business, does create difficulties for investment decisions, and that certainly is challenging.
“Businesses will have to adapt as this evolves, and Government will work with business.”
The Taoiseach said Ireland will engage with the European Commission over the effect of threatened tariffs, adding: “Our view is that there needs to be a more strategic position.”
Asked what instructions he would be giving to EU trade commissioner Maros Sefcovic, Mr Martin said: “What we will be saying is we need to refine some of this, because that was an old playbook in a different set of circumstances with perhaps different agendas and I think this is a new situation.
“Therefore I think there has to be a strategic approach to the areas that there will be reciprocal tariffs on. Europe has announced a menu. There will be consultation on that menu into time ahead, within Europe itself.
Mr Martin said the changing global environment created a need for the EU to improve its own competitiveness through “simplification of regulation” and getting more capital investment within Europe.
The threatened tariffs were described as “very concerning” for Ireland’s spirits sector.
