EU Trade Commissioner Maroš Šefcovic said the EU stands ready to defend its interests as Donald Trump, once again raises the spectre of a transatlantic trade war.
On Friday, Trump threatened to impose a 50% tariff on EU goods, though he suggested he might delay enforcement if European leaders "start moving" on trade talks. EU Trade Commissioner Maroš Šefcovic tweeted after meeting his U.S. counterpart last night, saying he remains ready to work "in good faith" on trade issues.
However, President Trump downplayed any progress, claiming negotiations are "going nowhere." Trump also alleged that the U.S. runs a $250 billion trade deficit with the EU, though he has not provided any evidence to support that figure.
If you think things couldn't get worse for Ireland's economy, Trump has threatened to slap US tech giant Apple with a 25% tariff, whose headquarters are based in Cork. Markets have already responded negatively to the news. Shares of Apple ended 3% lower and the dollar sank 1% versus the Japanese yen and the euro rose 0.8% against the dollar. The vast majority of iPhones are made in China, but the company has also recently shifted some production to India. The President is adamant that he wants the company's iPhones to be built in America.
Ireland South MEP Billy Kelleher is concerned. He said, "Whether or not the tariff is enforced will be the big question over the coming days. But going down that road would be very damaging for the Irish economy, the EU economy, and even the U.S. economy."
The Irish branch of the International Chamber of Commerce has called for "calm" but has also stressed the importance of avoiding retaliation. Shane Hughes, Policy and International Affairs Manager at ICC Ireland said, "We’ve been in contact with many of our European colleagues, and the general feeling is clear: we want de-escalation, not escalation. This could affect our GDP. It wouldn't be positive for especially Ireland or for the EU as a whole.”
However, hope may be on the horizon, as Mr Trump has previously backed down on tariffs. For example, he backed down on a a tit-for-tat trade war with China, which saw tariffs soar above 100%.
