Says Iceland’s interests have been upheld

The United States government’s decision to impose a 15% tariff on imports from Iceland was made unilaterally and announced at short notice, and the Icelandic government has expressed its disappointment with the decision.

This is stated in a written reply from the Prime Minister’s Office to mbl.is regarding two trade matters: the U.S. decision to impose the 15% tariff on imports from Iceland and the European Union’s (EU) plans for safeguard tariffs.

Article on Iceland Monitor

Tariffs on Icelandic goods increased

Calls for formal negotiations to continue

Regarding the U.S. tariffs, the reply states that the Ministry for Foreign Affairs has requested formal negotiations on trade between Iceland and the United States, including the proposed tariffs.

"Such negotiations have not begun formally, but the Ministry for Foreign Affairs remains in regular contact with the U.S. Trade Representative."

The U.S. government’s decision to impose the 15% tariff on imports from Iceland was taken unilaterally and with little notice. The Icelandic government has expressed its disappointment in communications with the U.S. Trade Representative and will continue to push for formal negotiations on trade between the two countries.

Furthermore, Icelandic authorities have not received an official notification from the U.S. government about the tariff decision, although the 15% rate is stated in a presidential proclamation.

Medicines and medical devices exempt

“The Ministry for Foreign Affairs has received confirmation from the U.S. Trade Representative that the exemptions specified in the presidential decision of April 2 still apply.”

It was specified at the time that medicines would be exempt from the tariff until the U.S. government completes an ongoing review of the impact of importing medicines and raw materials for pharmaceutical production on U.S. national security.

Certain medical devices are also understood to be exempt from tariffs in the U.S. market under the so-called Nairobi Protocol to the UN Convention on the Importation of Educational, Scientific, and Cultural Materials.

EU safeguard measures

When asked about the actions taken by the Prime Minister since the announcement of possible EU safeguard measures on ferroalloys, the reply states that in all bilateral meetings with representatives of the EU and its member states, the Prime Minister has defended Iceland’s interests as an EEA/EFTA state in relation to potential tariff measures.

“Icelandic authorities have been in contact with the EU on this matter since the European Commission launched an investigation in December last year to assess whether safeguard measures should be applied to imports of ferroalloys and silicon to the EU market. In this, Iceland has coordinated its position with other EFTA states within the EEA, particularly Norway.”

Continuing “in full force”

It is stated that this issue has been raised with the EU by the Prime Minister, the Minister for Foreign Affairs, and officials of the Ministry for Foreign Affairs.

The EU recently requested formal consultations with the EFTA states within the EEA in the Joint EEA Committee, and these are still ongoing. The EU has not yet made a final decision on safeguard measures regarding ferroalloys, but a decision by the European Commission is expected around mid-August.

“This decision will not be final but temporary. Icelandic authorities will therefore continue to pursue Iceland’s interests in this matter with full force.”