US tariffs the 'most serious issue' faced by Irish economy in a long time, warns Taoiseach
The Taoiseach said that negotiations between the EU and US were “key” and that it was important to get to a sustainable “landing zone”. Picture: David Creedon
The introduction of US tariffs are the “most serious issue” faced by the Irish economy in a long time, Taoiseach Micheál Martin has said.
The Government is preparing for a wave of US tariffs to be introduced by US president Donald Trump later today, with an expected announcement at 9pm Irish time.
“This is, without question, the most serious issue facing the Irish economy in a long time and it’s clear that the scale of these tariffs will be very, very significant in a European context,” Mr Martin said, speaking in the Dáil.
The Taoiseach said that negotiations between the EU and US were “key” and that it was important to get to a sustainable “landing zone”.
However, Mr Martin said that the trade relationship with the US will not be the “status quo” and that the world is now entering into a period of increased protectionism.
“That is not good for Ireland. It’s not good for open economies,” Mr Martin said.
Mr Martin said the Government has engaged with the European Union for the bloc to take a “cool and calm” response to Mr Trump’s tariff announcement.
“Also that in the design of countermeasures, that Europe be strategic and that it doesn’t do more harm on ourselves, on Europeans, as opposed to anybody else,” Mr Martin said.
“In other words, where we get clear surfaces it makes sense that we don’t invite a doubling of tariffs.”
The ESRI and Department of Finance have jointly warned that the imposition of tariffs could lead to between 50,000 and 80,000 jobs not being created in Ireland over the medium term.
The Government has also warned that possible income tax cuts may be delayed due to the economic shock from export levies.
The Taoiseach warned that by introducing tariffs, American companies will suffer as they become cut off from the European market.
“They [American companies] can’t survive without a global footprint,” he added.
Sinn Féin leader Mary Lou McDonald told the Dáil that the Irish economy is “particularly exposed”, as the US is Ireland’s largest export partner.
Ms McDonald said that the responsibility of the Government is to stand up for Ireland’s interests and warned against the EU taking any knee-jerk response.
“This is the time for cool heads and a clear eye on what’s important and to focus on the things that we can control,” Ms McDonald said.
Ms McDonald criticised the Government for not investing in Ireland’s “long-term competitiveness and attractiveness”, saying that the country has attracted foreign direct investment mainly through “complex tax incentives”.
During the exchange at Leaders’ Questions, Mr Martin confirmed that a meeting of all party leaders would be facilitated to allow for discussion on tariffs.
