US President Donald Trump has enacted an executive order postponing the initiation of “reciprocal tariffs” that affect numerous economies, including the EU.
The new deadline for the increased tariffs has been rescheduled to 1 August, as stated in the order.
Earlier, White House Press Secretary Karoline Leavitt informed reporters that the deadline would be extended, noting that Mr. Trump plans to discuss the “reciprocal tariff rate” with foreign leaders in the upcoming month.
Tánaiste and Minister for Foreign Affairs Simon Harris expressed that he remains “cautiously optimistic about reaching an agreement in principle” with the US following the White House’s announcement of the delay.
“I want to clarify that while it is probable some form of tariffs will be implemented, their application—even at a lower rate—is detrimental to consumers, jobs, economic growth, and investment,” Mr. Harris remarked.
“As I have stated previously, the uncertainty is also harmful to economic confidence and Irish businesses looking for clarity regarding their trading environment.”
In the meantime, Taoiseach Micheál Martin expressed his anticipation of a “framework agreement” regarding tariffs between the EU and US to be established this week.
Watch: Taoiseach says ‘framework agreement’ between EU and US could be agreed this week
He indicated that such an agreement would entail both sides committing to refrain from escalating trade tensions, which “would create space for further discussions” and establish “a deal of clarity.”
The Taoiseach shared his thoughts after a phone call with European Commission President Ursula von der Leyen earlier that day.
He voiced his support for the commission’s stance that “we should come to an agreement to provide certainty for consumers, businesses, and industry.”
He added that both parties are negotiating the “fine details” of the framework agreement, and Mr. Martin acknowledged ongoing issues in specific sectors.
The Taoiseach noted that any framework agreement would exclude the pharmaceutical sector, which is under a separate investigation by US authorities.
When questioned about the likelihood of maintaining 10% baseline tariffs on numerous exports, he replied, “Certain realities will emerge.”
Donald Trump announced tariffs impacting numerous trading partners
Mr. Trump introduced tariffs of 25% on Japan and South Korea, intensifying pressure on these two key US allies along with a dozen other economies to reach trade agreements with Washington.
The US president dispatched similar letters to about a dozen other trading partners, including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia, indicating that he would impose duties ranging from 25% to 40% on their products.
Japan’s Prime Minister Shigeru Ishiba stated yesterday that he “won’t easily compromise” during trade negotiations with Washington.
Additional tariffs for BRICS-aligned countries
Mr. Trump announced that the US would impose an extra 10% tariff on any nations aligning themselves with the “Anti-American policies” of the BRICS group, whose leaders began a summit in Brazil yesterday.
With organizations like the G7 and G20 facing difficulties due to divisions and the disruptive “America First” approach of the president, the BRICS is positioning itself as a refuge for multilateral diplomacy amidst violent conflicts and trade wars.
In a joint statement from the start of the BRICS summit in Rio de Janeiro released yesterday afternoon, the group cautioned that rising tariffs pose a threat to global trade, continuing its subtle critique of Mr. Trump’s tariff strategies.
Shortly after, Mr. Trump warned that he would penalize countries seeking to associate with the group.
“Any country aligning itself with the Anti-American policies of BRICS will be subject to an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump stated in a post on Truth Social.
Mr. Trump did not elaborate further on the reference to “Anti-American policies” in his post.
