IFA President Francie Gorman said the proposed EU–U.S. trade agreement will present further challenges to Irish farm families. A trade agreement between the EU and the U.S. was announced yesterday, which will see a 15% import duty imposed on the majority of EU exports into the U.S.
"While the proposed tariff rate of 15% is lower than the threatened 30% rate, it still represents a challenge for the Irish agri sector on several fronts. We are still awaiting the finer details of the agreement, but given Ireland's reliance on the U.S. market, both in agriculture and beyond, its impact will be significant on Irish farm families, both directly and indirectly," Gorman said.
In 2024, Ireland exported around €1.9 billion worth of food and drink products to the U.S. market. This accounts for about 11% of total food and drink exports. Within the €1.9 billion, dairy exports were valued at €830 million, and drinks, predominantly whiskey, at €900 million, together representing 91% of total exports to the U.S.
"Before the introduction of tariffs by the Trump administration in April, Irish butter was subject to a tariff rate of about 16%. Initial reports indicate that the proposed new 15% tariff rate will replace existing tariffs and will not be 'stacked' on top of them. Should this be the case, it would reduce the impact of the proposed new tariffs on the Irish dairy sector significantly," Gorman explained.
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It is still unclear what tariff level will be applied to other products, such as Irish whiskey and liqueurs, where a 15% rate would be challenging given these products previously faced zero tariffs.
"The trade deal will create many other indirect challenges as well. The UK, which struck a 10% tariff deal, now benefits from a lower tariff than Ireland, making it more competitive in the U.S. market compared to Irish goods. It also means a differential tariff between exports north and south of the border. Furthermore, many farm households rely on employment from U.S. multinationals, which may also be negatively impacted by these new tariffs," Gorman said.
"From an Irish and European farmer perspective, the cost of any additional tariffs will ultimately be borne by the primary producer. This comes against the backdrop of a potentially damaging Mercosur trade deal and plans to reduce the EU CAP budget. Yet again, farmers risk becoming the ones to absorb the impact of EU trade and policy developments," he concluded.
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