The government must ensure that Ireland’s interests are protected in any EU response to President Trump’s trade tariffs, according to Social Democrats acting leader Cian O’Callaghan.
Deputy O’Callaghan said:
“President Trump has now fired the starting gun on an unprecedented global trade war, with punitive 20 per cent tariffs slapped on EU exports to the US.
“Ireland, as a small open economy with huge trade with the US, is more exposed than most by yesterday’s events. The implications of a lower 10 per cent rate being applied to UK exports – which effectively creates a two-tier trading arrangement with America on the island of Ireland – will require particular focus.
“The 20 per cent tariff will badly hit Irish exports, particularly in the agri-food and drink sectors. The government must look at ways of best supporting the businesses that will be most impacted by Trump taking a wrecking ball to the world economy.
“The only positive from Trump’s announcement is the stay of execution for Ireland’s pharma sector. However, this may only turn out to be a temporary reprieve.
“It is clear from the US President’s previous comments that he has our pharma sector in his sights. Given that pharma comprises around €100 billion – or 45 per cent of our goods exports – this is deeply concerning.
“The pharma industry, and the people who work in it, are a critically important part of our economy. It is crucial that it does not get caught in the crossfire of a tit-for-tat trade war of attrition between the EU and the US.
“How the EU decides to retaliate to Mr Trump’s tariffs will have a huge impact on Ireland. The government must ensure that Ireland’s voice is loudly heard in any trade negotiations between Europe and the United States.
“It is important there is no kneejerk reaction from the EU to Trump’s tariffs and that cool heads prevail. Any escalation could risk Ireland’s pharma and tech sectors being dragged into a cross-Atlantic trade war – with devastating economic consequences.”
April 3, 2025