Ibec has warned Irish businesses will need Government support to deal with the impact of the 15% tariff imposed as part of the newly forged trade deal between the EU and US.

Over the weekend, US President Donald Trump and European Commission President Ursula von der Leyen announced the new trade agreement following talks held at Trump’s Turnberry golf resort in Scotland.

The deal, which both leaders described as mutually beneficial, is expected to boost transatlantic commerce and deepen economic ties between the US and the European Union.

“We have reached a deal. It's a good deal for everybody,” President Trump told reporters after the meeting.

Standing alongside Ms von der Leyen, who also hailed the agreement as a “good deal,” the US leader described the development as a major success for both economies.

On a positive note, Ibec said the announcement "brings an end to a significant amount of uncertainty for some businesses."

But the organisation warned "a 15% tariff still represents a substantial burden for many industries.

"Sectors which rely heavily on the US market and operate within small margins, will once again be significantly impacted by an additional 5% tariff, on top of what they have already had to absorb over the past several months and well in excess of the 1% effective tariff which existed before April."

And they warned it was not clear what impact the US Government's decision to carry out Section 232 investigations into the effects on US national security of imports of pharmaceuticals and pharmaceutical ingredients and imports of semiconductors and semiconductor manufacturing equipment was going to have.

In a statement, the business lobby group said: "Our message to the Government, as it was with the 10% tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit.

"It is important to note that details are still emerging and will only be worked out as today’s framework is fleshed out.

"These details will be critically important for Ireland. Pharmaceuticals and Semiconductors, which equate to 75% of Ireland-US trade, are, we understand, included in the 15% deal.

"However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations."  

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