DONALD Trump has reignited his trade war with the EU cutting across trade negotiations to slap 30 per cent tariffs on all EU goods travelling into the U.S from August 1st.
Europe today warned that they will fire back at this tax attack with the US President warning that any retaliation will be met with further tariff hikes from Stateside.
US president Donald Trump is set to slap 30 per cent tariffs on all EU goods[/caption]
The dramatic worsening in trade relations has sparked fears for the Irish economy which is heavily reliant on trade with the States as Taoiseach Micheal Martin urged all parties to get back to the negotiating table.
European and American officials have been locked in trade negotiations for weeks after Donald Trump initially announced a 20 per cent tariff on EU countries earlier this year.
The American President then slashed this tariff tax to 10 per cent to facilitate negotiations.
During these talks, the President has made a series of threats that he would hike the tariff to a range of different rates including as high as 50 per cent.
Reports from the EU side had claimed that good progress was being made in the talks but the US leader cut through this on Saturday by announcing a permanent 30 per cent tariff that would kick in from August 1st.
President Trump claims there is a major trade imbalance between the States and the EU and he wants more companies to set up in American and make their products there.
In a letter to European Commission President Ursula von der Leyen, Trump warned Europe not to respond with tariffs of their own or he would hit back once again by jacking up his taxes.
He said: “The European Union will allow complete, open Market Access to the United States, with no Tariffs being charged to us, in an attempt to reduce the large Trade Deficit.
“If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you chose to raise them by, will be added onto the 30 per cent that we charge.
A 30 per cent tariff on all goods travelling from Ireland to the US would be incredibly damaging for Irish businesses and could cost thousands of jobs here.
The tariff attack could also wipe billions off the Irish economy as a small number of American companies that sell products back to the US pay enormous amounts of corporation tax here.
The EU had previously drawn up a list of tariffs of their own that they would implement on the States if Trump pushed ahead with his measures.
‘EVERYONE WINS’ HOPE
Taoiseach Micheal Martin urged both the EU and the US to get back around the table for talks to avoid an all out trade war.
He said: “While it has been clear that all options remain on the table, the EU has also been clear that our preference is for a negotiated solution that avoids escalation. That remains the case.
“I hope that negotiations will continue in the weeks ahead and that they will be successful.
“The EU and the US should be partners, not rivals. In a true partnership, everyone wins.
“The EU negotiators continue to have my full support in this important work.”
