A lot happens at Ibec. From the events and VIP briefings we host with political and business leaders to our political engagements and campaigns we run on your behalf. Here we show some recent updates from our CEO, Danny McCoy.
CEO Update: EU-US trade deal - What we know now
Friday, 1 August
The latest CEO Update to Ibec membership from Danny McCoy
Dear member,
Last night's Executive Order provides some clarity to help firms engage in ongoing trade, but it leaves many questions unanswered. Ultimately, we will only gain further clarity when we see the EU US joint statement, the application of any zero for zero agreements that result from it, and the outcome of the ongoing Section 232 investigations, which affect products accounting for 74% of Ireland US trade.
This morning, Ibec attended the Government's Trade Forum. Our reflection is that Ireland is fortunate to have unity among members of the trade council in recognising the seriousness of the situation, and that a maximum tariff of 15% will have a significant impact on many businesses. Ibec will continue to advocate strongly for additional measures to help companies navigate this challenging time for trade, particularly in the context of the Budget.
As many of you know, our traded sector directly employs over 450,000 workers. However, the export income earned by those companies is the source of wealth that drives local economies across the country. Any shock to that export income is a shock not just to the trade sector but to the broader economic wellbeing of the country. We will continue to work with the Government to ensure that the most vulnerable are supported.
Given the volume of information emerging, here is a breakdown of what we know so far:
- The new tariff regime will take effect on August 7.
- Non-exempt EU exports currently paying a tariff below 15 percent will now pay a tariff of 15 percent. Those paying a tariff above 15% will revert to the duty they paid before the Trump era reciprocal tariffs.
- For goods subject to a fixed duty (such as dollars per kilogram), the equivalent percentage rate of duty will be calculated by dividing the duty payable by the customs value of the goods.
- Products covered in Annex II of the Executive Orders of April 2025, those under Section 232 investigation, remain exempt from additional tariffs for now. However, this remains subject to change.
- Goods that may benefit from zero tariffs or zero for zero tariffs under the EU US trade agreement (including aircraft and component parts, certain chemicals, certain generic medicines, semiconductor equipment, selected agricultural products, natural resources, and critical raw materials) will require the final EU US joint statement to confirm which specific HS codes will be exempt.
- Negotiations on additional zero-for-zero arrangements not covered by the Joint Statement may continue in the weeks ahead.
- For goods awaiting the outcome of the Section 232 investigations, further clarity will depend on the conclusion of those investigations. However, the European Commission understands that any resulting Section 232 tariffs will be capped at 15 percent.
We are aware that many questions remain unanswered until the joint statement is published.
Our team will continue to analyse the information as it becomes available, and we expect to be back next week with an update.
Regards,
Danny McCoy,
CEO,
Ibec
Walk the Walk / with Reputation Inc
“Walk the Talk”, a new series from Reputation Inc featuring conversations with leaders in business and broader society, delving into the intersection between business and reputation.
The episode, featuring Ibec CEO Danny McCoy, is presented in in four bite-sized video clips, exploring a range of topics including strategy, reputation, leadership, sustainability, and culture.
