Trump's tariffs pose 'conundrum' for pro-Protocol parties as Northern Ireland gains advantage over Republic

Stormont’s pro-Windsor Framework parties face a choice over backing rumoured Irish government plans to invoke Article 16 “at the expense of Northern Ireland” – a UUP MLA has said.

Steve Aiken’s comments come as Irish foreign minister Simon Harris warned that trade tariffs invoked by President Trump would come into effect from Thursday.

placeholder image — US President Donald Trump has placed higher import taxes on imports from the EU than the UK. Photo: Jane Barlow/PA Wire

Most EU goods entering the United States will face the import taxes – including cars, semiconductors and pharmaceuticals. Ireland has a large pharma sector, and is heavily reliant on its exports to America.

Mr Aiken says “rumours abound within business and political circles that the Irish are looking at invoking Article 16 of the Protocol” – which allows unilateral action by the EU to protect their market in the event of trade diversion.

The UK currently has a better deal than the EU for exports to the USA, with Northern Ireland treated as part of the UK rather than EU when selling goods abroad.

Mr Harris has said there are “too many variables” to yet know the effect of differing tariffs between Northern Ireland and the Republic.

He said last week that he had spoken with First Minister Michelle O’Neill, deputy First Minister Emma Little-Pengelly, and Economy Minister Caoimhe Archibald who agreed.

However, UUP MLA Mr Aiken says the Irish foreign minister “is a worried man”.

“With the UK export tariffs to the US being set at 10%, along with a signed agreement, the EU, of which Ireland is a member is now subject to 15% export tariffs, including the huge Pharma sector. Rumours abound within business and political circles that the Irish are looking at invoking Article 16 of the Protocol, which basically states that if there is any prolonged and significant diversionary pressures on trade, they are likely to unilaterally take action to protect their market”, he said.

He cited an EU attempt to invoke Article 16 over Covid vaccines, which he said produced “a short lived but serious diplomatic spat as the EU sought to deny vaccines to NI; this was especially upsetting to the ‘rigorous implementors’ as it was presumed that this likely to be only used by the UK in the most severe circumstances”.

Mr Aiken added: “The current batch of ‘faithful implementers’, led by cheerleaders in Alliance, SF and the SDLP, are now struck with a conundrum. Do they support Simon Harris as he seeks to ‘protect’ his own national market, at the expense of Northern Ireland, or do they accept that the UK’s differential trade tariff with the US gives us an actual advantage to use? We have heard time and again the parroting of ‘best of both worlds’ from them with little or no evidence, but will our ‘all island trade’ at all costs brigade accept this new reality?

“Equally how will our Secretary of State react. We know that, so far, he has valued ‘faithful implementation’ appeasement of the EU above all else. With evidence from the likes of the Federation of Small Businesses showing how disruptive to trade the Windsor Framework has been, he has steadfastly remained pro-EU. He has also ignored the will of the Assembly on EU applicability motions and completely ignored the Stormont Break, disregarding both so called ‘safeguards’ set out within the Windsor Framework.

“What will he do if Article 16 is enacted by the Irish Government? We have already gone ahead with fixed border posts in Belfast and Larne, where are own UK goods are subject to customs checks, adding significant cost and bureaucracy; will he now support further customs checks on behalf of, or even by the EU, on NI goods being exported to US to ensure that they don’t ‘exploit’ the lower UK tariff levee?”

The government has committed to full and faithful implementation of existing agreements with Brussels, arguing that it provides a basis for better deals in the future.