EU needs ‘strategic approach’ over alcohol tariff dispute, Martin says

Irish premier Micheal Martin has called for the EU to adopt a “strategic approach” around US tariffs, as he predicted difficulties for the Irish spirits industry.

Mr Martin was reacting to the threat of 200% tariffs on European wine, champagne and spirits – which was raised by US President Donald Trump on Thursday.

Mr Trump, who met the Irish premier at the White House on Wednesday, said he would impose those measures in response to moves by the European Commission, which announced it would re-introduce previously suspended tariffs on a range of US goods.

The two-way threats, which have yet to be implemented, are the latest developments in a deepening trade dispute between the US and the EU, and could significantly impact Ireland’s drinks industry.

The Commission said its countermeasures would apply to US exports worth up to 26 billion euro and come in a two-step approach of re-implementing previous tariffs from April 1 and applying new measures from later that month.

Mr Trump took a hard line on the EU during his bilateral meeting with Mr Martin in the Oval Office on Wednesday, saying: “I’m not happy with the European Union, and we’re going to win that financial battle.”

The Taoiseach told reporters on Thursday that alcohol tariffs were not specifically discussed during the meeting, but added that the only way to resolve a deepening trade dispute between the US and EU is “through dialogue”.

“But I do believe there will be some distance to go yet. There will be an EU Council towards the end of next week, and again, there will be discussions and consultations within the European Union in respect of European actions.

“And obviously, again, in that scenario, we’ll be endeavouring to protect Irish interests in terms of specific Irish products and Irish sectors.”

He added: “One would hope that this would settle in time, but the uncertainty does create difficulties for business, does create difficulties for investment decisions, and that certainly is challenging.

“Businesses will have to adapt as this evolves, and Government will work with business.”

Part of the Commission’s response is allowing a suspension on old measures from 2018 and 2020 to lapse on March 31, including tariffs on products ranging from boats to bourbon to motorbikes. The suspension of these tariffs started in 2022 and had been extended until this year.

Asked what instructions he would be giving to EU trade commissioner Maros Sefcovic, Mr Martin said: “What we will be saying is we need to refine some of this, because that was an old playbook in a different set of circumstances with perhaps different agendas and I think this is a new situation.

“Therefore I think there has to be a strategic approach to the areas that there will be reciprocal tariffs on. Europe has announced a menu. There will be consultation on that menu into time ahead, within Europe itself.”

Mr Martin said the changing global environment created a need for the EU to improve its own competitiveness through “simplification of regulation” and getting more capital investment within Europe.

The threatened tariffs were described as “very concerning” for Ireland’s spirits sector.

He said there was still “limited space” for dialogue as the tariffs had yet to be implemented.

Mr O Cathain said the tariffs could have an impact on consumers and added: “We want to make sure that every consumer can enjoy the spirits that they want – and I think it might be needed after this week.”

It came after his mixed day with Mr Trump which saw the president also address a “massive” trade imbalance with Ireland.

Mr Trump declared “I love the Irish” at a traditional annual event in which Mr Martin gifted him a bowl of shamrock to mark the deep ties between the US and Ireland.

However, a 50-minute exchange in front of reporters at the Oval Office earlier on Wednesday allowed Mr Trump to offer some more uncomfortable commentary on Ireland.

It came amid heightened concern around the administration’s protectionist approach to tariffs and tax, which could pose a significant risk to an Irish economy that is in large part sustained by long-standing investment by US multinationals.

The president said he does not want “to do anything to hurt Ireland”, but added that the trade relationship between the countries should be focused on “fairness”.

Elsewhere on Thursday, Northern Ireland Secretary Hilary Benn, deputy First Minister Emma Little Pengelly, and Communities Minister Gordon Lyons were among attendees at the NI Bureau breakfast in Washington, DC.

Mr Benn said the UK Government is preparing for tariffs and negotiating an economic agreement with the US, while Ms Little-Pengelly said: “The key issue for me is that we don’t become that collateral damage, and we need do everything that we can to influence that.”