Irish exporters adapt amid evolving US tariff framework
Irish exporters adapt amid evolving US tariff framework
Carol Lynch, Partner at BDO Ireland and Head of Customs and International Trade, is featured in the Irish Times, emphaisising that Irish businesses must retain strategic flexibility as they face persistent uncertainity over the application of EU-US tariff agreements across dairy, pharmaceutical, and semiconductor sectors.
The recent EU-US framework deal introduces a 15% tariff ceiling that offers some relief for certain exports, but questions remain over its exact implementation and sector-specific impacts.
"If you look at the explanation from the EU - it says up until the results of the Section 232 investigations, you are going to have the 0% rate applied to those imports and then a maximum of 15 % - but in the US explanation it says the EU will pay a tariff rate of 15%, including on pharma” Lynch said
Her remarks come amid growing volatility in regulatory interpretations, especially concerning whether pharmaceuticals and semiconductors remain tariff-free or face new levies.
"It is not clear between the EU and US statements what was actually agreed. The EU seems to have thought the rate remains zero for now and then a cap of 15% under the S232 investigations. However, this again seems to be uncertain after the announcements during the week”
While the new tariff ceiling offers some relief - particularly for dairy and beef exporters - Lynch underscores that the lack of clarity around sector - specific treatment calls for ongoing vigilance and careful scenario planning.
"Businesses have to move on - I would expect a strong September. People will go back to making their plans on a long term basis,” she said. "That planning is a lot more complicated, however - the world has completely changed. It has gone from one of free trade to a much more restricted and protected environment. You are not only looking at financial decisions - you are having to take in geopolitical concerns, too"