Harris: Hitting pharma during EU trade talks is inappropriate

Tánaiste and Minister for Foreign Affairs Simon Harris has urged the United States to refrain from imposing tariffs on the pharmaceutical industry while negotiations with the European Union over trade relations are ongoing. He emphasized that any move targeting specific sectors during talks would undermine the spirit of good faith. Speaking from Brussels during an EU foreign ministers meeting, Harris stressed that discussions must be approached constructively, without the backdrop of new penalties.

His comments follow a temporary suspension of reciprocal tariffs announced by US President Donald Trump, which has set the stage for EU trade commissioner Maroš Šefčovič’s meetings with US officials in Washington. Harris said he raised the matter directly with US Commerce Secretary Howard Lutnick, underlining the importance of avoiding new sector-specific measures that could damage key industries like pharma, which plays a crucial role in both the Irish and broader EU economies.

Concerns Over Mercosur and Push for CETA

Harris also reiterated Ireland’s ongoing opposition to the EU-Mercosur trade agreement. Although some reports suggested a possible shift in France’s position, Harris confirmed that his French counterpart remains against ratifying the deal. The Irish government continues to express reservations about the impact on farming incomes and food production standards.

While cautious on Mercosur, the Tánaiste signaled readiness to move forward on other trade deals. He announced intentions to bring forward a proposal in the coming weeks for Ireland to ratify the Comprehensive Economic and Trade Agreement (CETA) with Canada. He also expressed openness to exploring further agreements with countries like Singapore, Vietnam, Mexico, and India.

Justice Commissioner Michael McGrath commented separately that the EU should keep all tools available, including potential digital taxes and anti-coercion mechanisms, when negotiating with Washington. Though Ireland has typically resisted these measures due to its reliance on tech multinationals, McGrath noted that entering talks from a position of strength is essential. He emphasized that trade instability triggered by tariffs creates uncertainty for businesses, puts jobs at risk, and leads to higher consumer costs.

Fiscal Council Calls for Supportive Investment

Meanwhile, the Irish Fiscal Advisory Council (IFAC) weighed in on the broader economic impact of the evolving trade situation. Chief Economist Eddie Casey warned that continued reliance on a small number of US multinationals for corporate tax revenue presents a major risk. With US tariff threats potentially affecting profits and investment flows, he called on the government to prioritize long-term infrastructure investments and supports for Irish exporters.

Casey expressed skepticism that companies would exit Ireland immediately, but he predicted a slowdown in job creation and foreign investment until greater certainty returns. To maintain competitiveness, he stressed the importance of addressing foundational issues such as housing, energy, and water costs—factors that multinational companies have flagged as key concerns when operating in Ireland.