Sanctions 'could cost Irish manufacturers millions'
Yesterday's sanctions imposed by the EU on US imports will increase costs to manufacturers here by up to €35m, it has been estimated.
Firms sourcing goods in the US will be most affected, and the Irish Exporters Association (IEA) has warned that sanctions will affect Irish trade with the US.
It says that costs could rise by up to 20% a month if the trade war escalates.
Pascal Lamy, EU Trade Commissioner, announced that the 5% sanctions on a range of goods will increase by 1% per month until it reaches 17%.
The levies have been imposed in line with a World Trade Organisation ruling because of the US's failure to end a tax break that amounts to a $4bn (€3.225bn) subsidy to US exporters.
Both IBEC and the IEA called on the Irish Government to intervene in the row as current EU president.
The US is Ireland's largest export market, worth €16.9bn last year.
