Minister for Finance Paschal Donohoe said he is not currently planning a wage subsidy program for industries that may suffer losses due to the US tariffs on EU products, reports RTE.
US President Donald Trump has introduced a 20% tariff on all EU imports, as part of a broader set of actions affecting goods from multiple countries.
On RTÉ’s This Week programme, Mr Donohoe explained that measures like those used during Covid-19 are not suitable right now, reports RTE.
He stated that a broad wage subsidy scheme like the one during the Covid pandemic is not the right approach.
Still, Mr Donohoe acknowledged that Ireland will face slower economic growth and reduced job creation due to the US tariffs, reports RTE.
He noted that the country’s public finances remain strong and resilient.
He said the nation is starting from a solid position, with a budget surplus and 2.8 million people employed, reports RTE.
He emphasized that every possible response to the tariffs will need to be reviewed.
Mr Donohoe added that any action taken must be appropriate and introduced in a phased manner.
He said he believes the EU should respond as well, reports RTE.
He stressed the need for a balanced response to allow room for negotiation and the potential for additional measures if absolutely necessary.
Donohoe stated that a cautious approach is required, reports RTE.
He said that avoiding the worst outcomes depends on negotiation rather than a prolonged global trade conflict.
He added that further US actions are possible and that the EU’s response may take time to implement.
He said the Government aims to help businesses discover new markets, which will be vital, reports RTE.
Tánaiste Simon Harris will head to the US in the coming days for a meeting with US Secretary of Commerce Howard Lutnick.
The meeting is expected to occur on Wednesday.
The two have already had a phone conversation recently, where they discussed the mutual trade relationship, reports RTE.
Mr Donohoe said Mr Harris will bring a national viewpoint to the EU’s stance on tariffs during his US visit.
He stated that Harris will highlight Ireland’s strong economy and the importance of the US-EU and US-Ireland ties.
Mr Donohoe said Mr Harris has been in frequent contact with the EU Commission and will continue to do so before and after the meeting, reports RTE.
He explained that this approach is about combining EU-wide efforts with those of national governments so the EU presents a united front.
Meanwhile, Northern Ireland’s Economy Minister said the tariff announcement has created a difficult situation for businesses across Ireland, reports RTE.
On RTE’s This Week programme, Caoimhe Archibold said Northern Ireland could be heavily affected.
Minister remains dedicated to reducing VAT for hospitality
Mr Donohoe said he still supports cutting VAT for the hospitality industry.
He said the Budget is scheduled for October, and both he and Minister for Public Expenditure Jack Chambers are focused on protecting the economy and managing public funds responsibly, reports RTE.
He said the Government is committed to initiatives like this but must ensure they are financially sustainable.
He added that he and Chambers will release an economic update in the coming weeks.
When asked about removing health warnings from alcohol packaging, which the drinks industry is pushing for during uncertain times, he said the issue will likely be reviewed, reports RTE.
He also mentioned that a plan to provide workers with two more days of paid sick leave is under review and Minister for Enterprise and Jobs Peter Burke will present proposals to Cabinet soon.
He said he expects the matter to be reviewed and that any pause in the process will also be assessed, reports RTE.
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