Robert Besser
14 Apr 2025, 08:25 GMT+10
DUBLIN, Ireland: With tariffs from the United States beginning to bite, Irish businesses are already feeling the pressure, prompting urgent political appeals for calm, cooperation, and a strong EU response.
Taoiseach Micheal Martin told the Dail that some companies have reported orders from the U.S. "slowing or drying up entirely " following President Donald Trump's 20 percent blanket tariff on most EU goods.
"There is no way to sugar coat it," Martin said. "A 20 percent blanket tariff on most goods could potentially have a very significant and negative impact on investment and the wider Irish economy… putting valuable and skilled jobs at risk."
Despite these warnings, the Taoiseach said the Government must stay focused on investment in infrastructure and people, and not be "deflected" by short-term challenges.
During statements on U.S. tariffs in the Dail, Sinn Fein TDs emphasised that ordinary workers and families would bear the brunt. They also highlighted the anomaly of differing tariff rates on the island—20 percent in the Republic and 10 percent in Northern Ireland.
Tanaiste Simon Harris, meanwhile, met in Washington DC with U.S. commerce secretary Howard Lutnick, a key critic of Ireland's fiscal policies.
Martin said the pharmaceutical and med-tech industries have expressed concern about potential U.S. import taxes on their goods, and urged reflection from the U.S. side. "I hope that, having reflected, the United States will step back from disrupting this most sensitive sector."
He said the EU's response so far had been "the correct one," and that Ireland's concerns had been "taken fully into account." He also acknowledged serious concerns around how countermeasures might affect Northern Ireland, citing integrated cross-border supply chains.
Sinn Fein leader Mary Lou McDonald described the tariffs as "an unjustified act of economic aggression" and called for a "cool and calm" approach. "A tit-for-tat battle is a race to the bottom, and that's a race that nobody can win."
Labour's Duncan Smith warned that tariffs were being "weaponised" and backed a German-style subsidy scheme to support workers. Finance Minister Paschal Donohoe said the disruption "casts a dark shadow" but stressed Ireland's strength going into the crisis.
He added: "We have weathered many storms now, in recent years we have done this by working with our partners in the European Union, by managing our public finances in a sensible way, by creating a pro-enterprise economy, and by keeping our economy and our society open to trade.
"In a very changing world, I'm convinced these elements will continue."
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