Harris Urges Calm Amid Trump’s Tariff Threats on EU Trade

Irish Tánaiste Simon Harris has expressed optimism regarding a potential EU-US trade agreement, despite recent threats from US President Donald Trump to impose tariffs that could significantly disrupt transatlantic trade. During an interview with Pat Kenny on Newstalk, Harris emphasized the importance of maintaining a composed approach as negotiations continue.

Negotiations and Tariff Threats

Harris stated that a draft document exists between the White House and the European Commission, aiming to establish a framework for an agreement. He described the escalating rhetoric surrounding Trump’s potential tariffs on EU goods, set to take effect on August 1, as a major challenge. “We’ve been here before where President Trump has talked about 50 percent tariffs and hasn’t implemented them,” Harris noted, emphasizing a history of fluctuating threats from the US administration.

The Tánaiste underscored that tariffs at such high levels would not only disrupt trade but could effectively halt it altogether. “In his heart of hearts, he knows, as a businessman, that tariffs of that level would stop trade as we know it functioning between Europe and the US,” he added.

The Importance of Trust in Trade Relations

Addressing the broader implications of Trump’s actions, Harris highlighted the “constant level of volatility and uncertainty” that affects trust in US trade commitments. He pointed to instances where the US has withdrawn from significant agreements, such as the Paris climate agreement, and suggested that these actions have eroded confidence among EU negotiators.

“There are people who voted for President Trump whose jobs and livelihoods depend on that trading relationship,” Harris stated, pointing to the mutual dependency in transatlantic trade.

The Tánaiste called for a balanced dialogue, urging European leaders to communicate clearly to Trump that they aim to avoid retaliatory tariffs. “Of course, we’re not going to just sit idly by and allow our economy and the European economy be hit by very significant tariffs,” he warned.

Harris expressed confidence in Maroš Šefčovič, the European trade commissioner, who has previously collaborated with Ireland during the Brexit negotiations. He noted that Ireland is in a strong position, with full employment and budget surpluses, which could bolster its negotiating power.

In a scheduled online meeting with representatives from multinational pharmaceutical companies, Harris plans to illustrate the interdependence of US and EU economies. He stated, “A lot of what the pharma companies in Ireland send back to the US actually requires further work in US factories, so it creates jobs right across the United States.”

Harris concluded by emphasizing the need for a successful trade agreement, stating, “We have to get a deal. We have to work hard, but we do have to prepare for all eventualities.”

This article was originally published on BusinessPlus.ie.