US tariffs on pharmaceuticals could harm Ireland and global economy, warns Taoiseach
Taoiseach Micheal Martin speaking to the media before a Cabinet meeting at Government Buildings, Dublin. Picture: Cillian Sherlock/PA Wire
The US plan to impose tariffs on sectors including the pharmaceutical industry will be very serious for Ireland, as well as the European and world economies, according to the Taoiseach.
Speaking in Limerick prior to the inaugural Limerick Mayoral and Government Consultative Forum on Friday morning, Micheál Martin said that tariffs are likely to apply to five sectors in total in next week’s US announcement, adding that Ireland is working closely with European Union member states and the EU Commission.
Mr Martin said he is engaged in ongoing discussions with President Ursula von der Leyen “in terms of the collective European response to these tariffs.”
He said that the imposition of tariffs is very serious “for the world economy, European economy and Ireland.”
He continued: “Tariffs are bad for the world economy, and a trade war will be very bad for the world economy.”
Referring specifically to the tariffs to be imposed on the pharmaceutical sector, the Taoiseach said: “It has been well-established in Ireland, as indeed many technology companies have, and there is an integrated supply chain between the companies located here in Ireland and their US parents.”
He said that tariffs would “potentially damage the companies themselves.”
He elaborated: “Many of the product made here is not immediate product which is essential to the completion of products in the US. It will lead to inflation, higher prices for medicines for consumers and will damage the economic prospects of the companies in so far as they have embedded very substantial funding in the plants in Ireland.”
He said it is hoped that negotiation and discussion will resolve “these issues” between the EU and the US.
But he said: “Ireland will also be engaging bilaterally with the US and also working with our EU colleagues.”
When asked if he feared an exodus of pharmaceutical companies, Mr Martin said: “I think we have to take it step by step. I think they are long-standing, they are embedded and they are producing very high quality and essential medicine so you just can’t dismantle that overnight.”
He also said that the “overarching priority is the protection of jobs and the preservation and maintenance of the facilities in Ireland.”
However, he acknowledged that the imposition of tariffs on the EU is serious and represents a “fundamental change in economic policy”, with a move from globalisation to “potential protectionism, tariffs and retaliatory tariffs” which “are not good for anybody.”
He said he is working with his colleagues on “how we develop a response to this both in terms of dealing with the tariff issue itself but also then in terms of economic planning, in terms of developing our indigenous base” and diversifying.
Mr Martin said that efforts to strengthen existing relations with other trading partners are a priority, including “ratifying the trade deal with Canada.”
He said that efforts will also be concentrated within Europe to expand the single market and improve the competitiveness of the European economy.
He said engagement with the US is key, in a situation that is complex and stressed that it is early days regarding the plan to impose tariffs on the EU.
He said that cutting ties with the US and “taking an isolationist approach would be counterproductive in the extreme.”
Meanwhile, he acknowledged that there has been an effect on the workings of the Dail because of the speaking rights row which dominated proceedings again this week.
He said: “The government is working - the Dail isn’t but the government is”.
He moved to clarify the remark by adding: “The Dail is (working) but not optimally”.
He stressed that the government is very focused on issues including the impending announcement of US tariffs being imposed on the EU, including on the pharmaceutical sector.
He defended the government’s progress since being formed, saying: “We have put in place already since the government was formed the architecture through the Cabinet sub committees to enable us to get going on a whole range of issues and that work is well underway.”
He said that people want the Oireachtas to work effectively and continued: “If you watched the government’s demeanour and posture in the Dail last week, we didn’t shout anybody down, we didn’t scream anybody down and I think that was unacceptable behaviour. No matter what our views are, you can’t just in a coordinated way shout people down in such a manner that their voices are not heard. So that is the first basic requirement and that should happen next week.”
He said an instruction was given to all government members “not to heckle, not to get involved in any to-ing and fro-ing, respect the chair, respect the Dail itself, allow people the right to speak.”
He added: “I wasn’t allowed that right last week. I kept speaking but there were attempts to drown me down in a very coordinated way.”
