The European Union and the U.S. were "tantalisingly close" to a framework trade deal at the point where President Trump threatened to impose 30 percent tariffs on the bloc, this according to Tánaiste Simon Harris.
It is unclear as to whether Trump knew a deal was close or was unaware of the stage reached in the transatlantic negotiations.
Harris, according to reports, said that when the letter threatening the tariffs came, "there was surprise because, genuinely from a European perspective, there was an expectation that a deal was in there."
RTÉ reported that Harris added that there was and "remains absolutely space for a deal."
Harris has also pointed to the view of the Irish government that Ireland is "now at a moment of major economic challenge."
Harris said the impact of 30 percent tariffs would be "extraordinary".
"We're going to have to pull together in the hours and days ahead as we try to navigate our way through the latest scenario in relation to trade tariffs.
"There were moments last week where I believe it was almost palpable that there was an agreement nearly in place, and really what needs to happen in the hours and days ahead is a renewed effort to arrive at an agreement that can protect jobs, can protect economic stability in Ireland, in Europe and in the United States."
Harris added that 30 percent tariffs would "completely and utterly" alter the trading relationship between Ireland and the United States.
"You'd go from a situation at 10% tariffs where you're seeing a slower rate of new job growth to a situation of 30% where inevitably, you'll be seeing job losses."
Separately, Taoiseach Micheál Martin said that a 30 percent tariff rate would have a “very severe impact" on the Irish economy.
EU and U.S. negotiators are working to secure a deal before an August 1st deadline declared by President Trump.
