Between 50,000 and 75,000 people in Ireland could be impacted by US trade tariffs in a “worst case scenario” over the medium term, according to Minister for Finance Pascal Donohoe, reports RTE.
Early last month, US President Donald Trump introduced a 20% tariff on goods imported from the European Union.
A week later, however, he put a 90-day hold on those measures, although a general 10% duty on nearly all US imports is still being enforced.
“Across next year, we believe the number of jobs that may not be created, or could indeed be lost, would be 20-25,000 jobs,” Mr Donohoe said, reports RTE.
During an appearance on RTÉ’s Morning Ireland, Mr Donohoe explained the Government is considering “how we can negotiate to avoid that happening, and how we can adjust and support the economy if this moment of change were to occur”, reports RTE.
Mr Donohoe described the talks with the US as “to say the least, very volatile”.
“We are engaging through the European Union, with the United States of America. Meetings have taken place at official and political level between the US and the EU. And what we have aimed to do at a national level is to compliment that,” Mr Donohoe said, reports RTE.
He noted that the EU’s response tariffs are “responses back to decisions that have been made in the United States”, and added that the EU “would rather not be in a position where it has to make these decisions”.
The minister believes the Irish economy will continue expanding both this year and next, though at a slower rate.
“The US has indicated it wants to negotiate with the European Union but public progress and evidence of that awaits us,” he said, reports RTE.
While acknowledging the future remains “uncertain”, Mr Donohoe said Ireland is in a “position of strength”.
“We can still shape that certainty to a degree on a national and EU level,” he said, reports RTE.
On protecting Ireland’s pharmaceutical industry, Mr Donohoe said the country has been working through the EU “to make the case for live science and the medicine sector, to make the case for global supply chains and the role they can play that is beneficial for Ireland, for Europe and I think even for America”, reports RTE.
“We have put a lot of effort into this and this is understood by the [European] Commission,” he said, reports RTE.
He said there is “growing recognition” that medicine supply chains are highly intricate and “changes can have an effect on the pricing and the availability of medicine”.
When asked about tech and digital markets, Mr Donohoe stressed that “for many years, Ireland has made the case that the application of digital services taxes could have a very serious impact on our ability to find a good outcome on trade negotiations”, reports RTE.
Mr Donohoe added that he would like to see President Trump host EU Commission President Ursula von der Leyen.
“I would really want to see her in the Oval Office. I can think of few who are better able to represent what Europe stands for and the interests of the European Union,” he said, reports RTE.
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