Taoiseach hopes pharma and semiconductors sectors part of US negotiations

Irish premier Micheal Martin said he hopes the pharmaceutical and semiconductors manufacturing sectors will form part of negotiations between the European Union and the US.

Almost a week after US President Donald Trump announced he would be pausing his tariffs for 90 days, the EU is hoping to negotiate a trade deal with Washington before the deadline runs out.

Mr Trump said he was suspending the so-called reciprocal tariffs for 90 days, however his 10% rate is still in effect across the globe.

Speaking in Cork on Monday, Mr Martin said the tariffs have brought a lot of “uncertainty”.

The US has yet to announce plans to slap tariffs on the pharmaceutical sector, which is a particular concern for the Irish economy as it accounts for a significant amount of exports to the US.

Pharmaceuticals are currently exempt from the 20% tariffs but the US administration has previously said it would consider taxing such imports.

“There is an opportunity now for negotiation and I would hope, in that opportunity, that the sectoral issues in pharma and also in semiconductors would form part of that”, the Fianna Fail leader added.

“In other words, that it would form part of the wider negotiation and the European Commission is also of that mindset, so that they would have a comprehensive settlement between the European Union and the United States.

“It is the largest trading relationship in the world, hugely impactful and it is important that we don’t end up in a situation where undue harm would be caused to people or indeed to the world economy or those specifics sectors.

“Medicine is key to life and tariffs will increase the costs and that’s the key point, both in America and around the world.

“There are issues that the US has legitimately raised. It’s our view in Ireland that the European Commission is willing to engage in discussions and negotiation with the US to get a reasonable settlement that is sustainable for our respective economies and the people that we represent.”

Meanwhile, Sinn Fein leader Mary Lou McDonald said she raised the tariffs issue during their meeting with Northern Ireland Secretary Hilary Benn on Monday in Belfast.

She called on the Labour MP to “lessen” the administrative burden on businesses.

Ms McDonald said: “We also, of course, discuss the ongoing issues around tariffs and the uncertain trading dynamic across the world, but as it applies to the island of Ireland.

“We are very keen to protect the Ireland economy, to protect jobs and livelihoods, to protect the prospect of further investment across the island of Ireland, north and south.

“We have, of course, raised with the Secretary of State, in particular, the need to lessen the administrative burden and red tape when it comes to the reimbursement schemes that are provided for.”

Tanaiste Simon Harris said it was his impression that the US was now interested in negotiating but warned that it would be “foolish” not to prepare for an environment in which tariffs persist.

Mr Harris, who was in Luxembourg for a meeting of EU foreign affairs ministers, said it was “now time to get down to business”.

Asked whether he believed the US would do a deal to the benefit of EU exporters or if Irish businesses should prepare for 10% tariffs beyond the 90-day pause, he told reporters: “Well we’d be foolish not to prepare for an environment in which tariffs persist.

“And certainly the Irish Government is, of course, preparing for that and all of the various eventualities and outcomes.

“But whilst preparing for the worst, we need to continue to try and help to bring about the best, and that’s why I very much welcome that Commissioner Sefcovic is in Washington today and is engaging with his counterparts and interlocutors there.”

He added: “It’s now time to get serious. It’s time to get down to business.

“The European Union and Ireland has approached this period in a calm way, in a measured way. We want to do business. We want to buy more things from the United States. We want them to buy more things from us.

“We’re open for business. We want to protect and enhance the relationship, but we also stand ready to act if our economy and our jobs and our investment are threatened too – I certainly hope that’s not what it comes to.”