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LAST UPDATE | 10 Apr 2025
THE PAUSE ON tariffs announced by US President Donald Trump “alleviates” pressure on Ireland’s public finances, Taoiseach Micheál Martin has said.
While he said we are “not out of the woods yet” when it comes to potential impacts, Martin added there is a need for “balance” in discussions of a potential trade war stating that it can “dampen consumer sentiment”.
US President Donald Trump last night announced that the new tariffs on dozens of countries confirmed last week, including the EU, that sent markets into turmoil were being paused for 90-days.
The only country still facing an increase in tariffs is China, with Trump in fact raising tariffs on Chinese goods to 125% in response to what he described as a “lack of respect” the country has shown to global markets.
The EU is now facing a baseline tariff of 10% and not the 20% Trump had proposed, with the bloc also remaining subject to previously enacted US tariffs on steel and aluminium.
Asked last night if a deal could still be struck with the EU to avoid a trade war, Trump said that there were deals to be made with “every one of them”, including China.
Martin said it is “a delicate balancing act” discussing the tariffs and their impacts to Ireland “because we have to be honest and upfront with people, because subsequently we could be accused of not being – that happened before”.
“It’s a very delicate balancing act… we do have to maintain the positives,” he said, while acknowledging that there is a “shadow over the entire world”.
“The big problem here is when you announce this kind of a tariff and trade war, essentially, it dampens consumer sentiment, dampens purchasing, and it can lead to a recession in and of itself,” he said.
In terms of whether job losses are still a risk to Ireland, the Taoiseach told RTÉ’s Claire Byrne that they are, but quickly went on to state that “it’s a watching brief”.
Pressure on the public finances has been alleviated since Trump’s row back “without question”, said Martin.
However, he said no one yet knows how the overall crisis is going to end.
“The only certainty is uncertainty right now, but that said, I think coming out of yesterday’s decision, I think there is an opportunity for the European Union to engage,” said the Taoiseach.
This point was reiterated by Tánaiste Simon Harris, fresh from his trip from Washington DC where met with Commerce Secretary Howard Lutnick.
Recognising the fortuitous timing of his trip to the US capital, Harris said there is “space for negotiation” around potential US tariffs on pharmaceutical products after yesterday’s 90-day pause in new general tariffs on most countries.
“Productive, timely visit to Washington DC. Good to meet the Commerce Secretary and have very useful meetings on Capitol Hill. Calm, measured, detailed discussions and negotiations to find a way forward is key,” Harris posted on social media this morning.
In a further statement this morning, Harris said he has several engagements with EU Trade Commissioner Maros Sefcovic since his meeting with Lutnick yesterday and that negotiations with the US must take place “in a timely fashion”.
“All sides need to engage in good faith because uncertainly and turmoil is not the way forward,” Harris said.
The trading relationship between the EU and the US is worth €1.6 trillion per year. It’s massively important in terms of jobs, growth and investment in Ireland, across the European Union and in America.
An Tánaiste had been due to be on RTÉ’s Six One News yesterday evening but his meeting with Lutnick was delayed due to the rapidly evolving developments among the US administration.
Confirmation that Trump was instituting a pause in the new tariff regime was made via the US President’s Truth Social account, with Trump posting the news at 6.18pm Irish-time last evening.
US markets immediately soared after Trump’s u-turn, which was made in the middle of the trading day on Wall Street.
US stocks soared after President Trump's stunning reversal on tariffs for many countries, with the S&P 500 surging a whopping 9.5% — its biggest one-day percentage gain since 2008 — boosting investor sentiment https://t.co/46ZLlw6ZDb pic.twitter.com/iaNYsy2CMm
— Reuters (@Reuters) April 10, 2025
Harris instead appeared on RTÉ’s Nine O’Clock News, saying that it was a “very fluid” situation in Washington.
Trade negotiations with the US would take place at EU level, spearheaded by Sefcovic, and Harris said he was able to brief Sefcovic after his meeting with Lutnick.
Harris said that Lutnick emphasised that the pause was intended to allow for engagement and that he in turn said there needed to be “meaningful, substantive negotiation and engagement between Europe and the United States”.
“If we’ve seen anything in the last few days, it’s that the turmoil and uncertainty the tariffs have brought about isn’t a good thing. So getting to sit around the table and actually try to negotiate something that’s good for Europe, good for Ireland, good for Irish jobs and good for the United States is really important,” Harris said.
Harris added that 90 days is a “significant time” but that it remains to be seen whether this will be sufficient to solve the dispute as there are “clarifications” outstanding, particularly around the higher rate on cars and steel which are set to remain.
Productive, timely visit to Washington D.C.
— Simon Harris TD (@SimonHarrisTD) April 10, 2025
Good to meet the Commerce Secretary & have very useful meetings on Capitol Hill.
Calm, measured, detailed discussions and negotiations to find a way forward is key.
This was my message in the US. It’s been our consistent message. pic.twitter.com/Ew495m06sm
While the EU is to see a reprieve on Trump’s proposed new general tariff of 20%, he has indicated that sector specific tariffs are still being considered, with tariffs on the pharmaceutical sector of particular concern to Ireland.
Asked about this last night, Harris said he feels there is, on the US side, an “openness to considering” having a discussion about pharma tariffs.
“They do intend to take action in relation to the pharma sector. However, I do now think the 90-day pause does provide space for negotiation. And I would have made the point to Secretary Lutnick this evening that if there is to be serious and substantive negotiations with the European Union we should have, as part of that, a discussion around pharma and all valuable parts of industry.”
“Rather than having new tariffs stamped on another sector while that process is ongoing. I think there’s at least an openness to considering that,” he added.
Harris also appeared on Virgin Media’s Tonight Show yesterday evening, defending his trip to Washington DC as being of benefit to the wider EU, on the invitation of Lutnick and not simply a solo run.
“I would imagine the view of my visit has been useful, and not just at an Irish level, but also at a European level. Being here in real time, being able to ask questions, seek clarifications, get the latest thinking and being able to relay that back not just to our government but our European partners,” Harris said.
He added: “It’s really important to engage and we’re very clear right across the government, we’re going to take every opportunity to engage.”
With reporting by Christina Finn
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