US President Donald Trump has announced that the US will impose tariffs on pharmaceuticals, specifically mentioning Ireland as one of the countries where many of these products are manufactured, reports RTE.
Speaking from the Oval Office last night, Mr. Trump stated that the aim of these tariffs is to bring pharmaceutical production back to the US, arguing that the country does not “make anything” when it comes to drug manufacturing.
“It’s in other countries, largely made in China, a lot of it made in Ireland. Ireland was very smart. We love Ireland. But we’re going to have that,” Mr. Trump added, reports RTE.
This is not the first time the US President has referenced Ireland in discussions about the pharmaceutical sector.
During an Oval Office meeting earlier this month with Taoiseach Micheál Martin, Mr. Trump accused the Irish Government of attracting US pharmaceutical companies through favorable tax policies.
“All of a sudden Ireland has our pharmaceutical companies, this beautiful island of five million people has got the entire US pharmaceutical industry in its grasps. We don’t want to do anything to hurt Ireland, but we do want fairness and he understands that,” Mr. Trump told the Taoiseach, reports RTE.
Last week, US Commerce Secretary Howard Lutnick referred to Ireland as his preferred “tax scam.”
“We’re going to try and fix a whole bunch of these tax scams. Ireland is my favourite,” Mr. Lutnick said on the All-In business and technology podcast, reports RTE.
He further claimed that Ireland holds all of the US multinational pharmaceutical and technological intellectual property (IP) rights, which, according to him, puts the US at a disadvantage.
Donald Trump made these comments about Ireland last night while also warning of increased tariffs on the European Union and Canada if they collaborate to “do economic harm to the USA,” reports RTE.
Additionally, Mr. Trump announced a 25% tariff on imported vehicles, escalating global trade tensions and triggering criticism and threats of retaliation from affected US allies.
The Taoiseach has expressed concern over the possible effects of pharmaceutical tariffs.
Speaking in Paris at a summit on Ukraine attended by both EU and non-EU leaders, Micheál Martin warned that tariffs and trade conflicts would have highly negative repercussions for all parties involved, reports RTE.
He stated that he hoped “substantively the EU and the US will engage in discussions to come to a sensible resolution” regarding the issue.
The Taoiseach noted that there have been close discussions with Ireland’s pharmaceutical sector and that he has been in contact with several multinational firms based in the country, reports RTE.
Mr. Martin said: “We believe tariffs will damage broader economies across the world, will damage the American companies who are located in Ireland, not just here but in America as well, because these are complicated supply chains between Ireland, Europe and the US in the pharmaceutical area.”
‘Talks rather than tariffs is the sensible way forward,’ says Tánaiste, reports RTE.
Tánaiste Simon Harris emphasized that “talks rather than tariffs is the sensible way to proceed” in response to the latest global trade developments.
He stated that the EU is eager to negotiate with the US to establish a trade relationship and stressed that this “needs to happen,” reports RTE.
Mr. Harris said Ireland continues to work with European and US counterparts on trade policy and revealed that he had discussions this week with both Mr. Lutnick and EU Trade Commissioner Maroš Šefcovič.
The Tánaiste noted that “we are entering a time of major uncertainty” ahead of the anticipated announcement of additional US tariffs on EU imports next week.
Opposition warns of damage to Ireland from ‘global economic war, reports RTE.
Minister for Finance Paschal Donohoe has been urged to clarify with EU leaders how the bloc intends to respond to US tariffs, as Opposition members fear Ireland could suffer in a “global economic war.”
During today’s Dáil Leaders’ Questions debate, Social Democrats TD Cian O’Callaghan demanded answers on the matter.
Addressing Mr. Donohoe, Deputy O’Callaghan said: “[US president] Donald Trump has called April 2 ‘Liberation Day’, the day he plans to launch the global economic war,” reports RTE.
He stressed that “Ireland will be impacted” by these tariffs and cautioned that the country’s pharmaceutical industry is “in his [Donald Trump’s] crosshairs.”
Responding, Minister Donohoe acknowledged that the situation is “very serious” but dismissed criticism that Fine Gael’s campaign promises of tax reductions and increased spending may not be feasible due to these developments.
Mr. Donohoe stated that the Government remains focused on how to “engage” with the US, other EU nations, and what actions Ireland can take in the upcoming budget, reports RTE.
Meanwhile, Ibec Chief Executive Danny McCoy argued that Mr. Trump “doesn’t understand the dynamics of what he’s dealing with” by imposing tariffs on pharmaceuticals.
Speaking on RTÉ’s Today with Claire Byrne, Mr. McCoy warned that tariffs would have immediate negative effects on both consumers and voters, reports RTE.
“Donald Trump has unleashed something onto the United States that he believes he can control, and I don’t believe he can. The United States is the most powerful nation on Earth, but it constitutes, even economically, about one fifth of the Earth, so four fifths of the Earth have choices to make here,” reports RTE.
Mr. McCoy remarked that the US now appears to be “looking like a very risky partner,” which could have lasting consequences for global relations.
Tell us your thoughts in the Facebook post and share this with your friends.
