By Dayo Ade Olusola|M10news | July 27, 2025
Taoiseach Micheál Martin has welcomed a new trade agreement between U.S. President Donald Trump and European Commission President Ursula von der Leyen, describing it as a “stabilising moment” for global markets despite concerns over rising tariffs.
The deal, struck during high-level talks at Trump’s Turnberry golf resort in Scotland, imposes a baseline tariff of 15% on transatlantic trade, ending months of escalating threats that had cast uncertainty over the €1.6 trillion economic relationship between the European Union and the United States.
“A Good Deal for Everybody”
“We have reached a deal. It’s a good deal for everybody,” President Trump said in a press conference alongside von der Leyen, adding that the EU had pledged to invest an additional $600 billion into the U.S. economy and to purchase $750 billion worth of energy, including liquefied natural gas.
“This is the biggest [deal] of them all,” he declared.
While Trump portrayed the agreement as a diplomatic and economic breakthrough, Irish officials have adopted a more cautious tone.
Irish Concerns Over Tariff Impact
In a statement issued shortly after the announcement, Taoiseach Micheál Martin acknowledged the relief the deal brings in averting a full-blown trade war. However, he warned that the agreement still introduces new hurdles.
However, he added that Ireland would now carefully examine the details to understand the implications for exporters and sectoral businesses.
“It does mean that there will now be higher tariffs than there have been, and this will have an impact on trade between the EU and the US, making it more expensive and more challenging,” he said.
Despite the increase in costs, Martin described the agreement as the beginning of a “new era of stability” in EU-US economic relations, especially in light of the “very real risk” of punitive tariffs.
McGrath: ‘Zero for Zero’ Still the Goal
European Commissioner Michael McGrath, speaking to RTÉ’s This Week, said that while the EU had aimed for a “zero for zero” outcome — a scenario with no tariffs on a large group of goods — this vision was not fully embraced by the U.S.
“The EU’s response will depend on whether or not an agreement is reached,” McGrath said before the deal was confirmed. “If the US goes ahead with the 30% [threatened tariff rate] and so on, then we are ready with our countermeasures.”
Although the final deal avoids those harsher penalties, it still falls short of what many EU officials and exporters had hoped for.
Sectoral Exceptions and Compromises
Diplomatic sources indicate that while a general 15% tariff will apply, exceptions have been secured for certain key sectors. Aviation, timber, and spirits — but notably not wine — will enjoy more favourable terms.
A potential compromise on steel is also under consideration. Under the draft framework, a quota of EU steel would be permitted into the U.S. market tariff-free, while any additional volume would face a steep 50% levy.
Avoiding the Trade ‘Bazooka’
Since President Trump’s return to office, the EU has been hit by waves of new tariffs, including a 25% tariff on car imports, a 50% tariff on steel and aluminium, and a blanket 10% tariff that was expected to rise to 30% without a deal.
In response, EU member states had threatened retaliatory duties on $109 billion worth of U.S. goods — set to come into effect as early as August 7 — and were exploring more aggressive trade tools. France and several others pushed the Commission to consider a so-called “bazooka” approach, potentially limiting U.S. access to EU procurement markets, though such measures now appear to be shelved in light of the deal.
Wider Political Calculations
The breakthrough may carry political significance beyond economics. President Trump, who has vowed to secure “90 deals in 90 days,” has already sealed agreements with the UK, Japan, and the Philippines. A trade pact with the EU further bolsters his campaign narrative ahead of the U.S. presidential election.
It also provides a timely distraction from the intensifying controversy surrounding the Jeffrey Epstein case, which continues to stir dissent even within Trump’s political base.
Next Steps: Scrutiny and Ratification
European diplomats are expected to swiftly sign off on the agreement, but scrutiny from national governments and sectoral groups is likely to follow. The European Parliament may also seek a role in shaping the deal’s implementation.
For Ireland — a small, open economy heavily reliant on U.S. trade — the deal offers relief from looming uncertainty but raises new questions about long-term competitiveness.
“As we study the details, our focus will be on protecting jobs and preserving market access for Irish exporters,” Taoiseach Martin said, urging a calm but vigilant approach.
Additional reporting by AFP
