Government will take ‘calm’ approach to US tariffs on NI

Northern Ireland Secretary of State Hilary Benn has said the government will take a “calm and considered” approach in dealing with the fall out from the US trade tariffs.

He also confirmed that the government has carried out an impact assessment on how businesses in Northern Ireland might be impacted.

He was speaking during a debate in the Commons on the potential consequences for Northern Ireland from any trade war between the US and EU.

Under the Windsor Framework Northern Ireland remains in the EU single market and would be required to impose any new EU tariffs on US imports.

But, the Secretary of State said it is too early to assess any fall out for Northern Ireland.

“Until we know what the EU’s retaliatory tariffs are it doesn’t make much sense to publish speculation about the impact,” he said.

He also highlighted the tariff reimbursement scheme which businesses will be able to avail of if they can demonstrate that the goods they have bought from the US are not leaving the United Kingdom, they can get that tariff reimbursed.

Meanwhile, First Minister Michelle O’Neill, has warned that President Trump is playing a “dangerous game” which can only lead to a recession with dire consequences for families here.

She said she will continue to raise her concerns with both the Irish and British governments and to make the case for the “special circumstances” in Northern Ireland to be recognised.

The government is also facing questions from a House of Lords scrutiny committee over how it plans to protect Northern Ireland from the impact of a US and EU trade war.

The committee has sent a letter to the government posing a series of questions covering all possible outcomes.

They include if the EU decides to respond with tariffs and the UK does not, if the UK responds with tariffs and the EU does not and if both the UK and EU responds with tariffs.

Northern Ireland goods entering the US will face a 10% tariff under a measure that has been imposed on the UK as a whole.

Meanwhile, goods from the Republic of Ireland will be hit with a 20% tariff as part of measures Trump has imposed on the EU.