Trump tariffs: Lord Dodds says NI must benefit from UK-US trade deal amid concerns about impact of Protocol

Since coming to office, President Trump has threatened the prospect of hefty import taxes in negotiations with foreign governments – sparking concerns about the impact on global trade.

This week he said that the UK and the US could end up with a “real trade deal” that would make tariffs unnecessary. However, there is uncertainty about how Northern Ireland could benefit from any deal – given it remains effectively in the European Union’s single market for goods.

The new US administration has been much more hostile to the EU than the UK so far, raising concerns about a trade war. That could result in retaliatory hikes in tariffs – and it is likely Northern Ireland would be impacted.

Speaking to the News Letter, DUP peer Lord Dodds said it is “essential that Northern Ireland is not damaged in the crosswinds” of an international trade war between the United States and the European Union.

Lord Dodds added: “If Keir Starmer manages to keep Britain out of Trump‘s tariffs, it will be crucial that Northern Ireland is also exempt.

“The reality is that since Northern Ireland must apply the EU customs code under the dire Windsor Framework arrangements, any reciprocal action by the EU against the USA will also apply to Northern Ireland but not the rest of the U.K. This would damage our trade with the USA, affecting jobs and prices to consumers in Northern Ireland.

“This is another illustration of why the Windsor Framework/ Protocol is bad for everyone in Northern Ireland. It also illustrates the danger of continuing with the Irish Sea Border which in the case of trade tariffs would become more stark than ever”.

The Windsor Framework treats imports to and exports from Northern Ireland differently. The province is still part of the UK customs territory, so many (but not all) exports will be subject to the tariffs that the US applies to the UK – and could therefore benefit from a US-UK trade deal.

However, in the event of a trade war between the EU and US – higher tariffs could imposed by Brussels on American goods entering Northern Ireland. That will be judged by whether or not they are deemed likely to enter the EU proper. Those higher tariffs would impact local businesses and consumers.

While a trade deal between the UK and US is still some way off, Prime Minister Sir Keir Starmer said this week that the two leaders had decided “to begin work on a new economic deal with advanced technology at its core”.

That suggests that any agreement is likely to focus on technology, rather than being an all-encompassing free trade deal.

Sir Keir said at a joint press conference alongside Mr Trump: “Our two nations together shaped the great technological innovations of the last century.

“We have a chance now to do the same for the 21st century.”

The government has ruled out including the NHS in any deal. A Downing Street spokesman said on Friday: “The Government’s clear that we’ll only ever sign trade agreements which align with the UK national interest and the NHS will never be on the table for any trade agreement.”