Taoiseach Micheál Martin has welcomed confirmation from of a 15 per cent ceiling on US tariffs for EU pharmaceutical products and semiconductors.

In a joint statement this afternoon, the EU and the US said tariffs would be set at 15 per cent for EU exports of cars, pharmaceuticals, semiconductors and lumber, in line with the maximum tariff underlined in the trade deal agreed by the territories late last month.

The tariff ceiling will be applied once the US Department of Commerce has concluded investigations, ordered by Donald Trump, to determine the effect of imports of those products on national security.

Unavailable natural resources such as cork, all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors will be exempt from the 15 per cent tariff ceiling, and the US has committed to apply only most-favoured-nation tariffs, which are effectively zero per cent or close to zero per cent.

The EU and US said they would work to expand the list of goods subject to most-favoured-nation tariffs further in the future, and to reduce non-tariff barriers.

In reaction, the Taoiseach said the statement "brings greater clarity and certainty to what the agreement between the EU and the US will mean in practice. This is especially important for enterprises that either import from or export to the US."

In 2024, Ireland exported €44bn worth of pharmaceutical products to the US, more than half of the value of Irish exports to America (€72bn), and 15 of the 30 semiconductor companies employ a combined 20,000 people in Ireland

Martin said the 15 per cent tariff on pharma and semiconductor exports was important "given the scale of the pharmaceutical and semiconductor sectors in Ireland".

“While I have been clear all along that I do not support tariffs, this is a significant win for the EU," he continued.

“Given the significance of the airline sector to Ireland, a specific carve-out for aircraft and aircraft parts is also welcome.

“There are areas where further work remains to be done, including a potential carve-out for med-tech products and spirits. I hope this will be advanced as quickly as possible. We will continue to advocate for these sectors given their significant importance to our domestic economy."

Martin conceded that tariffs on EU goods "will have a negative impact on many businesses and on consumers both in the EU and the US", but he was thankful for the certainty and predictability the deal provided.

Ursula von der Leyen, president of the European Commission, said the EU had delivered for its member states and industry and "restored clarity and coherence to transatlantic trade" in what she described as a "challenging situation".

"This is not the end of the process, we continue to engage with the US to agree more tariff reductions, to identify more areas of cooperation, and to create more economic growth potential.

"At the same time, we continue to diversify our international trade partnerships, creating EU jobs and prosperity.”

Executive Director of Lobbying and Influence, Fergal O’Brien, said: “Today’s joint statement from the EU and US provides further clarity on the new trading reality, one that presents considerable competitiveness challenges for many Irish and European businesses.

"While we now have greater confirmation on the sectors subject to a maximum 15% tariff, additional details are still needed on some products, particularly where the US has committed to apply only the MFN tariff, such as generic pharmaceuticals, their ingredients, and chemical precursors.

"We also remain acutely aware that a number of sectors operating on smaller margins, and those heavily reliant on the US, continue to face significant pressure.

"These sectors will require ongoing support to navigate this new trading relationship between the EU and US and we will work with Government and the EU to continue to push for further zero for zero product agreements with US negotiators. 

"Our focus must remain on strengthening the fundamentals that enhance Ireland’s business offering, such as workforce development, infrastructure, innovation performance and cost competitiveness, if we are to navigate the challenges ahead.”

(Pic: Leon Farrell/RollingNews.ie)