EU Pushes for Trade Deal with US as Tariff Deadline Approaches
The European Commission has reaffirmed its commitment to reaching a negotiated trade agreement with the United States, as talks intensify ahead of an August 1 deadline that could see steep tariffs imposed.
EU Trade Commissioner Maroš Šefčovič is set to speak today with US Commerce Secretary Howard Lutnick as Brussels works to secure a deal that would avert punitive measures.
“While our priority is negotiations, we continue in parallel to prepare for all outcomes, including potential additional countermeasures,” the European Commission said in a statement.
Commission spokesperson Olof Gill added, “The EU’s primary focus is on achieving a negotiated outcome with the US. Intensive technical and political-level contact is ongoing.”
Irish Concerns Over Potential Tariffs
Ireland’s Minister for Enterprise, Trade and Employment, Peter Burke, warned that a potential 15% US tariff would present a "big challenge" for the Irish economy.
Speaking on RTÉ’s Today with Philip Boucher-Hayes, Minister Burke said the impact wouldn’t be on the scale of the global financial crisis, but it could significantly affect growth.
“At 15%, you’re looking at a potential 1.5% drop in GDP and possibly around 35,000 fewer jobs being created,” he said, while noting that this scenario does not yet indicate actual job losses.
He also highlighted the importance of trade diversification, confirming that he had brought a new strategy to Cabinet aimed at reducing overreliance on any one market, while still recognizing the US as a vital trading partner.
Tensions Rise Over Pharmaceutical Pricing
Meanwhile, US President Donald Trump has reiterated his intention to use import restrictions to pressure foreign pharmaceutical suppliers into lowering drug prices. Speaking at a White House event, he warned that pharmaceutical companies would face “a lot of problems” if they failed to act.
The US remains the largest market for pharmaceutical sales, and its supply chain is deeply interlinked with Europe. The pharmaceutical sector employs roughly 45,000 people in Ireland, and any disruption could have wide-reaching implications.
In 2024, Ireland’s total exports were valued at €223.8 billion, with approximately one-third going to the United States. Of the €72.6 billion in US imports from Ireland, around €58 billion were pharmaceutical and chemical products.
Industry Warning on Regulation and Investment
Earlier this year, about 30 CEOs from leading global pharmaceutical companies sent a letter to European Commission President Ursula von der Leyen. The letter warned that unless the EU rethinks its regulatory and pricing frameworks, it risks losing up to €100 billion in potential investment.
The industry has long voiced concerns about the impact of tariffs and overregulation on their ability to continue investing in European operations, including those based in Ireland.
Source : RTE