Longford businesses say there is too much 'uncertainty' with tariffs

Longford businesses are still facing 'uncertainty' despite the trade deal agreed by the European Union and the US on Sunday and one managing director said he has 'diversified' his market.

There are still elements that have to be agreed despite the recent trade deal between the European Union and the United States.

European commission president Ursula von der Leyen and US President Donald Trump announced a deal on Sunday.

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The agreement ends months of uncertainty and it will mean a full trade war is avoided with a 15% import tariff imposed on the majority of EU goods being exported to America.

That rate is half the 30% rate that Mr Trump had previously threatened to impose.

The Longford Leader spoke to three local business owners on Monday who export to the US including Seamus Butler.

Two of them said there was too much 'uncertainty' and not enough resolved and they declined to comment publicly.

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Mr Butler, the managing director and founder of Butler Manufacturing Services in Longford, is one of several local businesses that will be impacted, however, he said they have targeted other countries.

"I think they [the EU] capitulated too soon," Mr Butler said.

"It's not just the 15% it's that the dollar has gone down under Trump and at the beginning of January it was about US$1.02 or US$1.03 to €1, but it is now US$1.17 or US$1.18.

Mr Butler said the rapid fall is akin to a 16% further devaluation of the dollar and "now they are asking us to put 15% on top" of that.

"You are talking about a tariff of 30% plus for a US company to buy in the Eurozone.

"That has not been highlighted but it should be."

Mr Butler said Mr Trump had always spoken about the need for a strong dollar before a change.

"Now he says it is a great idea to have a weak dollar when it's completely off the wall.

"The future of our US business has just started to be shifted to Alaska since last Friday week.

"Luckily we have diversified our markets and we just got a massive order from the island of Montserrat and there are no tariffs in the Caribbean."