Irish dairy producers have strongly urged the EU to exclude US dairy goods from any tit-for-tat tariff measures amid escalating tensions between the bloc and its largest trading partner.
US president Donald Trump is expected to unveil tariffs of 20 per cent on a wide range of imports to the US from many of its trading partners on Wednesday.
In a submission to the European Commission last week, Dairy Industry Ireland (DII), the main lobby group for the sector within Ibec, said the source of the tensions is mainly centred on goods like aluminium and steel and that “unrelated” sectors like agri-food should not be dragged into the widening row.
DII said it acknowledges the “difficult position” the EU finds itself in, but it should avoid the risk of further retaliation.
“If anything, commercial policy measures should be targeted and restricted to sectors at the origin of disputes – steel and aluminium in this case,” DII said. Any response to the US measures should also be “designed to protect unrelated industries, such as dairy and SN (special nutrition), from collateral damage”.
The commission should remove all US dairy products from retaliation lists, DII said, “as the volumes are already very small and will only encourage retaliation on EU dairy”.
Speaking to The Irish Times, DII director Conor Mulvihill said it is unclear what, exactly, Mr Trump intends to announce on Wednesday. However, he said it would be “counterproductive at the extreme for the EU to put US dairy down on a tariff list” in future.
Along with Italy, which exports €4.4 billion-worth of food – including cheeses like Parmigiano Reggiano – to the US annually, the Republic’s dairy sector is considered to be among the most exposed in Europe to any tit-for-tat trade measures.
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Irish agri-food businesses like Glanbia, Kerry Group and Avonmore-maker Tirlán all have a big presence in the US. Ornua’s Kerrygold brand, meanwhile, is the second biggest selling butter in the US overall.
The value of the Republic’s dairy exports to the US doubled between 2019 and 2023 to €681 million.
