Taoiseach Micheál Martin has stated that the Government’s main priority is to safeguard Irish jobs amid concerns that incoming tariffs from US President Donald Trump could lead pharmaceutical and other companies to scale back their operations in Ireland, reports RTE.
Speaking at an event in Limerick, Mr. Martin told RTÉ News that “tariffs are bad for the world economy and a trade war will be very bad for the world economy.”
He further explained that after a period of globalization in the 1990s and early 2000s, “we’re now moving into an era of potential protectionism” characterized by “tariffs and retaliatory tariffs,” warning that “that’s not good for anybody,” reports RTE.
This follows President Trump’s announcement that the US will impose tariffs on pharmaceuticals, specifically mentioning Ireland as one of the countries where many such products are manufactured.
On Wednesday, Mr. Trump justified the proposed tariffs as a means to restore pharmaceutical production to the US, claiming, “We don’t make anything” domestically.
He made these remarks while threatening more significant tariffs on the European Union and Canada if they coordinate efforts “to do economic harm to the USA,” reports RTE.
Additionally, Mr. Trump announced a 25% tariff on imported vehicles, escalating the global trade conflict and prompting criticism and potential retaliation from affected US allies.
When asked whether these tariffs could cause pharmaceutical companies in Ireland to leave or reduce their presence, Mr. Martin responded: “I think we have to take this step by step, they’re [pharmaceutical firms] long-standing and embedded, and are producing high quality and essential medicines, so you just can’t dismantle that overnight,” reports RTE.
“Our objective is to engage with a view to working through this, and the over-arching priority is the protection of jobs and the protection and maintenance of facilities in Ireland. But it is serious, this is a fundamental change in terms of economic policy,” reports RTE.
He continued: “If you look through from the late 1990s and 2000s onwards, we were in an era of globalisation. We’re now moving into an era of potential protectionism and tariffs and retaliatory tariffs, that’s not good for anybody,” reports RTE.
Mr. Martin stated that the Government is actively working on plans to develop a response to these challenges.
This includes bolstering Ireland’s homegrown businesses, “copper-fastening existing relationships” with nations like Canada, and collaborating with EU member states to “expand the single market.”
He also mentioned having “brief discussions” with European Commission president Ursula von der Leyen about potential countermeasures but emphasized that Ireland would “also be engaging bilaterally” with the Trump administration, reports RTE.
Minister for Transport Darragh O’Brien confirmed that the Government is in communication with the pharmaceutical industry as the threat of US tariffs looms.
“We have had contact with pharmaceutical companies here in Ireland. I know the Tánaiste as Minister for Trade has, indeed so has the Taoiseach. I would expect there would be continued and accelerated detailed engagement with that sector in particular, in advance of 2 April. I know it’s happening already but obviously their experience and their view on how we can navigate this uncertain time is really important,” reports RTE.
When asked whether road funding might be affected if tariffs were to impact the economy, he responded:
“I don’t foresee a situation where investment in capital as such, in the NDP would be impacted by the current geopolitical situation. We have to continue to invest in our infrastructure to underpin a modern economy and a modern society as well,” reports RTE.
Last night, Minister for Finance Paschal Donohoe expressed his “extreme concern” over the possible impact of the proposed US tariffs on pharmaceutical exports, warning that they could significantly harm Ireland’s economy.
Speaking on RTÉ’s Prime Time, Mr. Donohoe stated that the Government is preparing for “real and significant” challenges if Mr. Trump proceeds with imposing tariffs on drug imports, including those from Ireland.
“I want to underline the scale of the change that we might have to deal with, the various significant and real difficulties that could present for our economy,” the minister said, reports RTE.
He assured that while the Government is preparing for major disruptions, Ireland is well-positioned to face the challenge.
“I believe that collectively, we will be able to rise to the test. I’m not going to deny for a moment, there will be challenges. It’s going to be so difficult, but that’s where our focus and our work will now begin,” he added, reports RTE.
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