The Taoiseach has said that “nobody wins” if the tariff dispute between the US and EU persists, as he confirmed the bloc is working toward a “negotiated settlement” with Donald Trump’s administration, reports Breaking News.
Micheál Martin emphasised that it is “extremely important” to offer stability to markets and investors.
The EU is aiming to finalise a trade agreement with the US ahead of July 9th, reports Breaking News.
Speaking to reporters in Brussels, Mr Martin said: “Every effort has to be made to get a landing zone that we can live with.
“It’s not ideal. It’s not optimal. Europe doesn’t want tariffs, but we have to deal with the situation that is before us,” reports Breaking News.
He added: “If a tariff dispute ensues, nobody wins. There is no painless tariff war.”
Mr Martin noted the importance of EU unity in negotiations and said he sensed an “atmosphere” focused on reaching a deal, reports Breaking News.
The Taoiseach’s remarks follow the latest publication from the Economic and Social Research Institute (ESRI), which warned that Ireland’s economic resilience will be tested amid domestic pressures and global uncertainty.
Although the Irish domestic economy remains relatively strong, the ESRI pointed out that “notable international and domestic risks are clouding the outlook”, reports Breaking News.
It noted that global uncertainty has climbed to “very elevated levels” due to shifting US trade policies and other geopolitical tensions.
It added: “This increase in uncertainty is likely to weigh on investment and consumer spending,” reports Breaking News.
The ESRI observed that Ireland has been largely shielded from tariffs so far because pharmaceutical products have been exempt.
It also stated that the significant role services play in Irish exports offers “short-term protection from tariff impacts but raises concerns about non-tariff barriers to services trade being imposed in future US-EU negotiations”, reports Breaking News.
According to the ESRI, Ireland’s GDP is projected to grow by 4.6 per cent in 2025 and 2.9 per cent in 2026, with export growth of 5.4 per cent and 3.3 per cent respectively.
However, these figures may be revised downward if trade tensions with the US escalate.
It anticipates the domestic economy will expand at a slower pace than in earlier projections, reports Breaking News.
The baseline forecast for Modified Domestic Demand is growth of 2.3 per cent in 2025 and 2.8 per cent in 2026. Inflation is expected to average 2.0 per cent in 2025 and 2.1 per cent in 2026.
The ESRI flagged two key risks to public finances – the heavy reliance on windfall corporation tax revenues, and the lag in residential construction to meet housing needs, reports Breaking News.
Mr Martin said the growth forecasts reflect the challenges posed by the ongoing tariff and trade dispute.
“That has caused ripples all over the world – and that’s why we favour an agreement by July 9th,” reports Breaking News.
He noted that such an agreement could influence the economic projections.
The ESRI has also revised its forecast for housing completions to 33,000 in 2025 and 37,000 in 2026, citing ongoing structural problems such as high building costs, infrastructure limitations, financing issues, and labour shortages, reports Breaking News.
These figures fall well short of the Government’s targets of delivering 303,000 homes by 2030, scaling up from 41,000 completions this year to 43,000 in 2026 and hitting 60,000 in 2030.
In response to the ESRI projections, Mr Martin said the Government is implementing “fundamental changes and measures” to ensure a long-term increase in housing supply.
“That is the objective on housing. It is the number one issue facing us, and it is the big social and economic priority of government and of the country,” reports Breaking News.
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