Taoiseach Micheál Martin has stated that Ireland will explore “every avenue” available to address the US tariffs set to take effect on Wednesday, reports RTE.
US President Donald Trump has indicated that the reciprocal tariffs he is preparing to introduce will apply to all countries, rather than just a select group of 10 to 15 nations with the largest trade deficits.
Along with taking part in the EU’s collective response, Ireland is also engaging in direct discussions with the US before the measures are implemented, reports RTE.
Speaking at Government Buildings this morning, Mr Martin emphasized that Ireland is “fundamentally part of the European Union” and will participate in the EU response.
“Trade is an exclusive function of the Commission but obviously we will also be intensifying our bilateral contacts with the US, both with the US administration and indeed with the companies who are going to impacted by any potential tariffs,” he said, reports RTE.
“So we will be using every avenue at our disposal but primarily with the European Union and bilaterally and with companies,” reports RTE.
The Taoiseach warned that tariffs are harmful to economic growth and could negatively affect the global economy.
Europe will take time to formulate its response, he said, and “in that period the members states working together can be strategic in terms of response.”
“Strategic responses are important, in other words, that we don’t invite more damage in our response and that we do it in a way that maximises Europe’s leverage here,” reports RTE.
Mr Martin said the ESRI forecasts a decline in GNP, and Ireland must diversify to mitigate this risk.
He noted that the Government will soon introduce legislation in the Dáil to implement the EU-Canada trade agreement and that Europe must improve its competitiveness, reports RTE.
“That which we can control, we need to do better at. In Ireland specifically, it means better delivery and investment in capital infrastructure, specifically on water, grid connections and the energy portfolio,” reports RTE.
The Taoiseach said new investments in these sectors will help counteract the impact of tariffs, lower business costs, and support Ireland’s economic balance.
President Trump has pledged to unveil a sweeping tariff plan, calling it “Liberation Day.” He has already imposed tariffs on aluminium, steel, and automobiles, as well as increasing tariffs on all Chinese imports, reports RTE.
“You’d start with all countries,” he told reporters aboard Air Force One. “Essentially all of the countries that we’re talking about,” reports RTE.
White House economic adviser Kevin Hassett recently told Fox Business that the tariff measures would primarily target 10 to 15 nations with the largest trade imbalances, though he did not specify which ones.
Mr Trump views tariffs as a means to shield the US economy from unfair global competition and as a tool to negotiate more favorable trade agreements, reports RTE.
However, fears of a trade war have unsettled financial markets and raised concerns about a potential US recession.
Mr Trump has stated he will impose a set of reciprocal tariffs against countries that charge duties on US exports, vowing to match their tariffs.
Contact Between Member States ‘Intensified’
The European Commission confirmed that discussions between EU officials and member states have intensified ahead of this week’s announcement, reports RTE.
EU trade spokesperson Olof Gill said Commission President Ursula von der Leyen had a phone conversation with the Taoiseach yesterday.
Mr Martin called the discussion “useful and constructive,” saying Ms. Von der Leyen “outlined her expectations” regarding the upcoming tariffs, reports RTE.
On social media last night, he stated that he had “raised Ireland’s particular focus on the food, drinks and pharma industries” and that “we both agreed that the EU should be measured and considered in any response, and focused on our own competitiveness, and an ambitious trade agenda.”
Mr Gill emphasized that President Von der Leyen’s direct contact with Mr Martin highlights the ongoing, constant engagement between EU leaders, reports RTE.
“And it shows a high degree of convergence between how we act on these complex issues,” he said, reports RTE.
“That will continue, and we expect that our member states will be in touch with us and we will be in touch with them as we build up to what promises to be a busy week,” reports RTE.
Mr Gill noted that two-way communication between the Commission, which oversees EU trade, and member states is “essential to ensuring that any response we come forward with to any current or future US measures on tariffs is well-calibrated, well targeted, timely, strikes the right balance between having the appropriate impact on the US economy and achieving the minimal amount of impact here in the EU economy,” reports RTE.
Meanwhile, Tánaiste Simon Harris will meet with European counterparts ahead of Wednesday’s announcement.
The Minister for Foreign Affairs and Trade is scheduled to hold discussions with Dutch Trade Minister Reinette Klever and Danish Foreign Minister Lars Løkke Rasmussen.
Mr Harris is also expected to host Croatian Foreign Minister Gordan Grlić-Radman in Dublin, reports RTE.
In a statement, the Tánaiste emphasized the need for EU unity in responding to the tariffs in a “calm, strategic and measured fashion” while maintaining constructive engagement with the US.
His bilateral meetings will also address the ongoing Russian invasion of Ukraine, reports RTE.
Elsewhere, the Minister for Employment stressed the need for a “laser-like focus” to ensure the country is prepared for the negative effects of any tariffs.
Peter Burke made the remarks at the opening of Datavant’s new Irish office in Galway this afternoon. He highlighted the significance of the 125 jobs created, particularly given the research and development plans of the company, reports RTE.
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