Northern Ireland Secretary Hilary Benn has said “there is an issue in respect to Northern Ireland” if the EU imposes retaliatory tariffs on the US.
Mr Benn told MPs that any impact of tariffs from the US would be “felt equally” across the UK but if the EU responds with their own tariffs then businesses may have to demonstrate that goods imported from the US are not leaving the UK to have the expenses reimbursed.
US President Donald Trump is expected to slap import taxes on goods arriving in the US from around the world as part of his “liberation day” tariffs.
Head of the European Commission, Ursula von der Leyen, has said the EU will negotiate but are also considering retaliating by adding tariffs on US goods.
Post-Brexit, Northern Ireland continues to follow the EU’s rules in some areas of trading due to the Windsor Framework arrangement.
Shadow Northern Ireland secretary Alex Burhgart told the Commons: “Later today, we are expecting Washington to announce the biggest changes to its tariff regime in a generation.
“This may cause huge disruption to industry and business throughout the United Kingdom, and that disruption may be particularly felt in Northern Ireland.”
Mr Benn replied: “We don’t yet know what, apart from the tariff on cars and the tariff on steel and aluminium, what else the US administration may announce later today, but the effects of any tariffs, if they are imposed, will be felt equally in Northern Ireland and across the rest of the United Kingdom.
“We will have to deal with the consequences when we know what the US administration has decided.”
Mr Burghart then said: “Northern Ireland because of its unique arrangements may be particularly disadvantaged in a trade war.
“If that happens, will the Secretary of State confirm to the House that the Government will be prepared to use article 16 of the Windsor Framework to take unilateral safeguarding measures to protect businesses in GB and Northern Ireland?”
Mr Benn replied: “In respect of tariffs that affect the whole of the United Kingdom as I’ve already said to (Mr Burghart), we’ll have to see what they are and take the appropriate action in response.
“If the EU retaliates, then there is an issue in respect to Northern Ireland, as he will be well aware, but there is the tariff reimbursement scheme, which he will be aware of, and that means that provided those businesses can demonstrate that the goods they have bought from the United States of America are not leaving the United Kingdom, then they can get that tariff reimbursed.”
UUP MP Robin Swann (South Antrim) asked what assessment had “been made in regards to the UK industrial strategy acting on the impact of US tariffs that may come”.
The Secretary of State replied: “We will discover more later on today about the decision that we’re told the US administration is about to make.
“Tariffs are not good for any country, they are not good for the global trading system but we will have to see what the consequences are.
“Any tariffs that the United States of America puts on the United Kingdom will be felt equally in Northern Ireland and in Great Britain.
“But we will not hesitate to take the action that is necessary to respond, but we’re not going to take snap decisions, because we are also trying to negotiate an economic agreement with the United States of America.”
SDLP MP Colum Eastwood (Foyle) said investment from US companies in Northern Ireland has been “very important for economic growth and cementing the peace process” in the region as he asked for support to businesses that “could be very detrimentally affected by any potential tariffs”.
Mr Benn said “the Government will take the steps that are necessary in the national interest” and are continuing to negotiate a deal with the US.
