The Government’s “over-arching priority” is to safeguard Irish jobs amid concerns that US President Donald Trump’s proposed tariffs could lead pharmaceutical and other companies to scale back their operations in Ireland, according to Taoiseach Micheál Martin, reports RTE.
Speaking to RTÉ News at an event in Limerick, the Taoiseach emphasized that “tariffs are bad for the world economy and a trade war will be very bad for the world economy.”
Mr. Martin noted that after a period of globalization in the 1990s and early 2000s, “we’re now moving into an era of potential protectionism” marked by “tariffs and retaliatory tariffs,” warning that “that’s not good for anybody,” reports RTE.
Tánaiste Simon Harris also acknowledged the economic turbulence ahead, stating that Ireland and the EU face significant challenges due to the looming threat of US trade tariffs.
He remarked, “We’re highly likely to be entering a time of extraordinary economic challenge and turbulence in Ireland and the EU. I think Ireland needs to approach the next number of days, weeks, and months with two things in mind: controlling what we can control and influencing what we can influence,” reports RTE.
He stressed that Ireland will collaborate closely with the EU in navigating this “serious challenge” and emphasized the importance of engaging in negotiations with the US over any proposed tariffs.
“I really hope that after the moment of reveal that President Trump seems intent on having next week, there is very quick engagement and negotiation between the EU and the US to find a way forward,” he said.
Mr. Trump recently announced plans to introduce tariffs on pharmaceuticals, specifically naming Ireland as a key producer of many pharmaceutical products, reports RTE.
On Wednesday, he stated that the proposed tariffs are aimed at bringing pharmaceutical manufacturing back to the US, arguing, “We don’t make anything” domestically.
He also warned of larger tariffs on the European Union and Canada if they act together in ways that he believes harm the US economy.
Additionally, Mr. Trump unveiled a 25% tariff on imported vehicles, escalating trade tensions and prompting backlash from affected US allies, reports RTE.
When asked whether the US tariffs could lead pharmaceutical firms to exit or scale back their presence in Ireland, Mr. Martin responded, “I think we have to take this step by step. They’re long-standing and embedded, and are producing high-quality and essential medicines, so you just can’t dismantle that overnight.”
He reaffirmed the Government’s commitment to engaging with stakeholders to address the situation, stating, “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, reports RTE.
“But it is serious. This is a fundamental change in terms of economic policy,” reports RTE.
Reflecting on the broader shift, he reiterated, “If you look through from the late 1990s and 2000s onwards, we were in an era of globalization.
“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 confirmed that the Government is actively formulating its response to the situation.
This includes efforts to strengthen Ireland’s domestic businesses, reinforce existing trade relationships with countries like Canada, and collaborate with EU partners to expand the single market.
He also mentioned that he has had “brief discussions” with European Commission President Ursula von der Leyen regarding possible measures, adding that Ireland will “also be engaging bilaterally” with the Trump administration, reports RTE.
Minister for Transport Darragh O’Brien stated that the Government remains in contact with the pharmaceutical industry as the threat of US tariffs looms closer.
“We have had contact with pharmaceutical companies her 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.
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