CEO Update: EU-US Negotiations and Business Lobbying

Dear Member,

The decision by US President Donald Trump this week to extend the pause on increased US tariffs of up to 50 percent on EU goods until 1 August is a welcome development. It provides additional space for a potential EU US trade agreement to be reached.

However, the ongoing uncertainty continues to create serious challenges for many businesses navigating the current trading environment. During a recent meeting with Minister for Finance and re-elected President of the Eurogroup, Paschal Donohoe TD, Ibec’s newly formed CFO Roundtable highlighted the practical realities faced by businesses dealing with this persistent uncertainty around transatlantic trade.

Ibec, in coordination with our partners in BusinessEurope, continues to engage directly with the European Commission on these issues. Discussions have focused on the expected timeline for a final agreement, sector specific concerns raised in our submissions to the Commission, and the growing risk of regulatory divergence related to Northern Ireland.

We also raised significant concerns about the potential imposition of a 17 percent tariff on EU food exports, particularly affecting the dairy sector. Other key issues include uncertainty around Section 232 investigations, especially those relating to pharmaceuticals and semiconductors, the possible targeting of services during negotiations, and unresolved questions regarding rules of origin.

As outlined by Ibec’s Executive Director of Lobbying and Influence, Fergal O’Brien, during his appearance on Morning Ireland, the existing 10 percent tariffs, along with further tariffs already in place for certain sectors such as food, are causing major difficulties. These impacts persist regardless of whether a broader EU US trade deal is ultimately reached.

This message will be further reinforced next week with the launch of Ibec’s Pre Budget submission, Matching Vigilance with Agility, on Tuesday. While the broader economy may remain resilient, some sectors will face significant and lasting damage to their competitiveness. These businesses and their employees must receive targeted support, and this should be a key focus of Budget 2026. You can register for Monday’s membership briefing on Ibec’s Pre-Budget submission here

Kind Regards,

Danny McCoy,

Ibec CEO