Government devises action plan to mitigate Trump's tariffs

The Government is expected to take a number of actions over the coming days:

• On Monday, Tánaiste and trade minister Simon Harris will begin a series of meetings with his EU counterparts particularly those who are also impacted particularly by pharma tariffs. He is also expected to speak over the coming days to the Danish and Italian foreign ministers and the Dutch and Swedish trade ministers. The Netherlands, Denmark, and Sweden all have significant interests in the pharma industry;
• Coalition leaders will meet to discuss the Government action plan;
• Agriculture minister Martin Heydon is planning to travel to the US to assess the impact on the spirits and agri sectors;
• On Friday, the Government will convene its trade forum to take soundings from the sectoral interests;
• The Government must also assess the impact of the tariffs on Ireland before Mr Harris attends a meeting in Luxembourg next Monday where the EU will begin to formulate its response. All member states are expected to have two weeks to put forth their individual responses and key interests ahead of a meeting of the European Council where it is hoped decisions will be made and an EU tariff package will get signed off from the 27 leaders.

Mr Harris is also considering a trip to the US next month where he will seek to meet with political figures.

He has already written to EU trade commissioner Maros Sefcovic to convey concerns relating to the spirits and dairy sectors as both are essential to the agriculture community.

“We believe there is likely to be a period after tariffs are announced and before the EU’s retaliatory measures take effect where there will be a chance for engagement and dialogue with the US in a bid de-escalate this,” a source said.

However as the Tánaiste has made clear repeatedly we are in for a period of significant turbulence over the coming weeks. This is a fast evolving and dynamic situation and we can’t be certain what will ultimately come to pass. Uncertainty is now the new normal.

Taoiseach Micheál Martin has also been ramping up engagement with the EU noting a “useful and constructive” call with president of the EU commission, Ursula von der Leyen yesterday.

He said he raised Ireland’s focus on the food, drinks, and pharma industries with both agreeing that any EU response should be measured, considered and “focused on our own competitiveness and and ambitious trade agenda”.

Bilateral engagement with America is also continuing as the Government attempt to create contingency plans in the face of widespread uncertainty.

At home, Government leaders will meet to discuss a competitive action plan with enterprise minister Peter Burke this evening.

Experts have warned that the pharma sector could experience a double-whammy resulting in anywhere from 20% to 40% tariffs between those expected to be announced on Wednesday and possible further announcements in the coming weeks.

With so much yet unknown, Mr Burke told RTÉ Radio 1’s This Week that it is too early to speculate about whether pledges of social welfare increases and tax cuts that were made in the programme for government will come to pass but did not rule out the possibility.

Mr Burke sought to play down how severe the impacts of any potential trade war might have on Ireland saying it would not be as stark as the 2008 crash.