Will Trump's tariffs give Northern Ireland an advantage over the Republic?
Tomas Doherty
Donald Trump’s tariff plan will upend decades of rules-based trade across the world and could create a fresh Brexit headache for businesses in Northern Ireland.
The decision by the US president to impose different import taxes for the North and the Republic could further complicate what is already an intricate set of trading arrangements on the island.
What are current trade rules in the North?
Brexit created a complex system for trade to and from Northern Ireland.
The rules governing trade in the region were painstakingly negotiated by successive British and Irish governments in order to avoid a "hard border" on the island of Ireland. The issue formed a major part of the UK's eventual exit deal with the European Union.
The current rules mean that goods manufactured in the North have barrier-free access to both the EU single market and the British market.
No other UK region or European country has that arrangement.
It also means that goods coming into Northern Ireland must meet EU rules.
Which tariff will Northern Irish goods now face for trade with the US?
Northern Irish goods will be covered by the 10 per cent tariff which Mr Trump has imposed on the UK as a whole.
Goods from the Republic will be hit with a 20 per cent tariff as part of measures the US president has imposed on the EU.
Will this give the North an advantage over the Republic?
The North's 10 per cent tariff could give some exporters an advantage if they compete directly with producers in the Republic for US business.
This could be straightforward for the whiskey industry, but will be more tricky for dairy businesses who produce on both sides of the Border.
However, the Trump tariffs are likely to have a major negative impact on global trade and economic growth, offsetting any potential positive for Northern Irish exporters.
And what about imports from the US?
If the EU decides to retaliate against the US, it could lead to a situation where American goods coming into Northern Ireland will face EU tariffs.
This could leave the North in a starkly different position compared to other parts of the UK, especially if the British government decides not to retaliate.
Do the tariffs affect trade in services?
Mr Trump's tariffs only relate to trade in goods.
The Republic has a significant services trade deficit amounting to €163 billion, meaning it imported €163 billion worth of services from the US more than it exported.
However, president Trump has so far seemed uninterested in services and has focused his attention on the US goods trade.
@breakingnews.ieTánaiste Simon Harris has given his initial response to Donald Trump's tariffs. The US president announced a minimum baseline tariff of 10% on imports from all countries, with additional higher rates for some regions – including a 20% tax on goods from Ireland and the rest of the EU. For all the latest, visit breakingnews.ie♬ original sound - breakingnews.ie
How have local businesses and politicians reacted?
Businesses in the North are “anxious” about the impact that the tariff announcements will have, First Minister Michelle O’Neill said.
Deputy First Minister Emma Little-Pengelly said it was important for any retaliatory EU tariffs on the US not to penalise Northern Ireland.
Tánaiste Simon Harris said there was a need to examine the implications of different tariffs on the island.
Mairead McGuinness, the former EU commissioner, told RTÉ that the situation “causes some difficulties.”
“I think we will have to look at this very carefully … this was not part of the discussions and thought processes when the Windsor Framework was being negotiated. I mean, 10 per cent isn’t good for Northern Ireland either; 20 per cent isn’t good for us. Divisions like this aren’t helpful.”