EU tariffs on the US are to include animal feed products, two of which make up 30% of all Irish animal feed. Both distillers' grains and MCorn gluten feed are on the EU’s tariff list.

Addressing European Commissioner for Agriculture Christophe Hansen, MEP Ciaran Mullooly said this will add €15/t on to Irish farmers’ feed costs.

“I have to bring to your attention the very unfair and disproportionate impact that the recently announced EU tariffs of 25% on US animal feed products will have on Ireland’s livestock sector. We have a problem here, we are particularly vulnerable on these tariffs.

“Crucially, there is no alternative supply for corn gluten feed outside of the US and no surplus of distillers’ grain within the EU to offset this. What are we to do, Commissioner?

“Your proposed tariffs are to increase the price of animal feed at the farm gate by approximately €15/t. I appeal to you, take it off the list,” he said.

The MEP added that Ireland relies on the US for 60% of the EU’s total distillers' grain imports and 98% of its corn gluten feed imports.

Stakeholder engagement

Responding, Commissioner Hansen said this list is provisional and stakeholders can now “make their comments on what is necessary and what is not necessary”.

“What we are analysing is what we can already do now at this reform without preempting what is going to happen on the next.

“If eventually we are taking off certain products to make the US side come back to the negotiating table, that is something, really, that would be the way forward and what would be my preference,” he said.

Mullooly said he is calling on the Commission to conduct an immediate impact assessment of the selected tariff measures on Ireland’s agricultural sector.

He also said the inclusion of distillers' grains and corn gluten feed in the tariff list needs to be reassessed to prevent disproportionate harm to Irish farmers and it needs to be ensured that EU trade measures do not create unintended economic hardship for sectors without viable alternative supply sources.

“Ireland is the only EU country facing such a severe impact from these tariffs. The Commission must act now to prevent unnecessary damage to our farming sector,” he added.

The tariffs are expected to come into force in early April.

Alcohol tariffs

Meanwhile, at a different hearing, MEP Nina Carberry addressed European Commissioner for Trade Maroš Šefcovic on the impact US tariffs would have on alcoholic drinks produced in Ireland.

“My stance on tariffs is clear, they are a tax that will severely disrupt long-standing, mutually beneficial transatlantic supply chains.

“Irish whiskey exports to the US are worth €450m annually. A 50% tariff, never mind one at 200%, would simply be devastating.

“During my recent visit to the Drumshanbo Distillery in Co Leitrim, I witnessed first-hand the potential consequences.

“As a major employer of rural Ireland, with over 35% of its exports going to the US, half of the jobs there are at risk,” she said.

Carbery asked Commissioner Šefcovic not to impose counter tariffs on bourbon due to the “backlash” this would create.

“Given this, I want to directly ask you, as you had mentioned previously that the first list will be coming out of a 'freezer' and is out of date by five years. I want to hone in on bourbon specifically.

“Given the limited advantages of targeting bourbon directly, compared to the backlash it would cause if entered into force, I would greatly welcome your openness to looking again at this list,” she said.

Fertiliser tariffs

Separately, proposed tariff increases on fertiliser imports from Russia were also discussed at a hearing with the Commission.

Mullooly said these would have a devastating impact on Irish farmers.

"The proposed tariff increases pose a significant threat to Irish farmers and we cannot afford to rush into decisions without a thorough understanding of the consequences, which could lead to severe repercussions for food production costs and overall agricultural competitiveness," he said.

"The current proposals do not adequately address the urgent needs of Irish family farms, which are struggling to maintain profitability in an increasingly challenging environment,” he said.

Transitioning towards self-sufficiency requires considerable time and careful planning to avoid disrupting the agricultural economy, the MEP added.

The Commission said thorough impact assessment is necessary to understand the potential effects of these tariffs on the EU's agricultural sector.

Using 2024 fertiliser prices as a base for calculating the impact of tariffs is problematic, the MEP said, as these prices are 52% higher than in 2021, disproportionately benefiting European fertiliser manufacturers at the expense of farmers.