The Irish Co-operative Organisation Society (ICOS) has made a formal submission to the European Commission on countermeasures in response to the imposition of US tariffs and said food products should not be used in the dispute.

“As a matter of principle, food products should not be used as leverage as part of international trade disputes,” it said.

The EU has developed a draft list of countermeasures in response to the imposition of US tariffs on steel and aluminium exports from the EU.

Following a request for feedback on the products included in the EU list of countermeasures, ICOS has called on the Commission to de-escalate trade tensions with the US.

ICOS president Edward Carr said the organisation understands that the EU is placed in a very difficult situation.

Trade tensions

“However, the European Commission must seek to avoid unnecessary escalation in trade tensions with the US.

“Fundamentally, we strongly oppose the inclusion of all food, including dairy products, as part of the suite of EU countermeasures as a matter of principle.

“The inclusion of food products as trade countermeasures will have negative consequences for both the EU and US, leading to higher food prices and reduced availability for consumers,” he said.

Important US market

Carr added that US is “an extremely important” market for Irish dairy farmers and the co-operative sector.

“The value of Irish dairy exports to the US was over €830m in 2024. High-value butter and cheese exports are the key drivers of Irish dairy exports to the US, as well as dairy powder ingredients and other products.

“It is vital that countermeasures introduced by the EU should be targeted, proportionate and avoid unintended consequences for farmers and their co-operatives,” he stated.

The ICOS president also said the trade policies of the US administration are creating “significant uncertainty” for global trade and it is concerned by additional tariffs indicated by president Donald Trump.

“However, protectionist trade policies will ultimately prove to be counterproductive. Therefore, we urge the EU in its engagement with the US administration to prioritise constructive dialogue and to avoid unnecessary escalation,” he added.