Trump signs order delaying tariff deadline to 1 August
US President Donald Trump has signed an executive order delaying the date on which so-called “reciprocal tariffs” affecting dozens of economies, including the EU, will take effect.
The Wednesday deadline for steeper levies will be pushed back to 1 August, according to the order.
Earlier, White House Press Secretary Karoline Leavitt told reporters the deadline was to be pushed back, adding that Mr Trump would address foreign leaders with their “reciprocal tariff rate” within the next month.
Tánaiste and Minister for Foreign Affairs Simon Harris said he remains “cautiously optimistic about reaching agreement in principle” with the US after the White House announced the postponement.
The Tánaiste welcomed the move this evening, saying it avoided the prospect of 50% tariffs coming into effect on EU exports to the US.
“I want to be clear that while it is likely there will be some form of tariffs going forward, their imposition even at a lower rate is bad for consumers, jobs, economic growth and investment,” Mr Harris said.
“As I have been saying for some time, the uncertainty is also bad for economic confidence and Irish businesses seeking clarity on the trading environment in which they operate.”
Meanwhile Taoiseach Micheál Martin said he was anticipating a “framework agreement” between the EU and US would be agreed this week on tariffs.
He said such a deal would mean that both sides would agree not to escalate trade tensions and “would leave space for further discussions”, adding it would create “a deal of clarity”.
The Taoiseach was commenting after he held a phone call with European Commission President Ursula von der Leyen earlier today.
He said he was supportive of the commission’s position that “we should reach an agreement to give certainty to consumers, businesses and industry”.
He added that both sides were negotiating the “fine detail” of the framework agreement. Mr Martin said there were still issues regarding specific sectors.
The Taoiseach said any framework agreement would not include the pharmaceutical industry, which is subject to a separate investigation by the US authorities.
Asked about the expectation of 10% baseline tariffs remaining on many exports, he said: “There are certain realities which will emerge.”
Mr Trump announced tariffs of 25% on Japan and South Korea, stepping up pressure on the two key US allies and a dozen other economies to reach trade deals with Washington.
The US president issued similar letters to a dozen other trading partners including Indonesia, Bangladesh, Thailand, South Africa and Malaysia, saying he would impose duties on their products ranging from 25% to 40%.
Japan’s Prime Minister Shigeru Ishiba said yesterday that he “won’t easily compromise” in trade talks with Washington.
Additional tariffs for BRICS-aligned countries
Mr Trump said the US will impose an additional 10% tariff on any countries aligning themselves with the “Anti-American policies” of the BRICS group of developing nations, whose leaders kicked off a summit in Brazil yesterday.
With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive “America First” approach of the US president, the BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars.
In a joint statement from the opening of the BRICS summit in Rio de Janeiro released yesterday afternoon, the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Mr Trump’s tariff policies.
Hours later, Mr Trump warned he would punish countries seeking to join with the grouping.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump said in a post on Truth Social.
Mr Trump did not clarify or expand on the “Anti-American policies” reference in his post.
Additional reporting: AFP/Reuters
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