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Live BlogUS STOCK MARKETS have tumbled amid worries about a trade war and global economic downturn following Donald Trump’s tariff announcement yesterday.
The Dow Jones is now down 2.77%, the S&P 500 is 3.56% lower, and the Nasdaq – which is dominated by tech stocks – has dropped 4.71%.
Meanwhile, the EU will begin negotiations on US tariffs with the White House tomorrow, the European trade commissioner Maroš Šefčovič has said.
A 20% tariff has been slapped on exports from the European Union, a move slammed this morning by President of the European Commission Ursula von der Leyen in an early morning speech.
Taoiseach Micheál Martin has said there’s no justification for the tariffs and has insisted Ireland will “weather this storm”.
Martin also remarked that while the Irish economy is resilient, tariffs will have an impact.
Speaking this morning, Tánaiste Simon Harris said that Ireland and the EU were still preparing for the introduction of tariffs on pharma products at a later date. Despite expectations, they weren’t included in last night’s announcement.
Updates by Jane Moore (now), Diarmuid Pepper, Muiris Ó Cearbhaill and Daragh Brophy (earlier).
We’re going to wrap our liveblog up for the evening. Thank you for staying with our coverage throughout the day.
We’ll bring you any major updates as they happen on our main site.
Speaking of stocks, here’s how the top three US stock market indexes look at the time of writing:
Donald Trump has insisted that stocks and the US economy would “boom” despite a rout on global markets sparked by his worldwide tariffs.
“The markets are going to boom,” the US President told reporters as he left the White House for Florida, when asked about the chaos on Wall Street and other markets. “The country is going to boom.”
Political Editor Christina Finn here, fresh out of the Department Finance where Finance Minister Paschal Donohoe and Public Expenditure Minister Jack Chambers were answering questions on the latest Exchequer results and the impacts of the tariffs.
First of all, today’s Exchequer returns show that tax receipts in the first quarter of the year were up by €3.5 billion (17.5% on last year).
Income tax receipts in Q1 amounted to €8.2 billion, €0.3 billion (3.6%) ahead of last year and VAT receipts of €7.6 billion were up by €0.5 billion.
So, here’s a rundown of what they said about the economy and the impacts of tariffs:
The last time the scope or extent of this was tried globally in trading terms was around 1930, which led to the Great Depression. And in fact, the tariffs that are being imposed now are in excess of that.
Canada will retaliate against Trump’s automobile levies that came into effect today with a 25% tariff on some cars imported from the US.
Speaking today, Prime Minister Mark Carney said: “25% tariffs on all vehicles imported from the United States that are not compliant with CUSMA,” using the Canadian acronym for an existing North America free trade agreement.
Carney did not immediately offer detail on how many vehicles could be impacted by Canada’s retaliation, but called his response “focused and calibrated.”
He said that while it’s progress that further tariffs were not imposed on Canada yesterday, “the President’s actions will reverberate here in Canada and across the world”.
“Three different sets of US tariffs remain in place and will continue to pose significant threats to Canadian workers and Canadian businesses, and while they have been imposed under different premises, some things are consistent.
“They are all unjustified, unwarranted, and in our judgment, misguided.”
Earlier today, Paschal Donohoe was speaking at an event to mark ten years of Ireland’s Strategic Investment Fund at the Royal Convention Centre in Dublin.
In his speech, the Minister for Finance said it is clear that “the global economic landscape is changing and the ‘new normal’ will most likely be very different from what we have been used to for many years”.
“It is important to stress that there is still considerable uncertainty in relation to the likely evolution of the global tariff landscape,” Donohoe said.
“We need to understand to what degree today’s measures will be permanent, and what the EU and global response will be, in order to fully assess the potential impacts.”
He said the next step will be to see “how we can take action” to minimise the impacts of the tariffs, adding that he, the Taoiseach and the Tánaiste have held “extensive discussions” at both EU and euro area levels to put forward our views on the next steps in relation to the appropriate response.
“We need to take sufficient time to analyse the potential impacts of any counter-measures, while ensuring they are proportionate,” he continued.
“We will also continue to stress to our US counterparts – at every available opportunity – the importance of the mutually beneficial economic relationship we – and indeed the EU – have enjoyed with the US.
Ultimately, the best way to minimise impacts on the worst-impacted sectors will be to focus on remaining a competitive economy in which to do business.
Donohoe said that challenges such as tariffs “highlight the importance of Ireland reinforcing its fiscal buffers going forward”.
He cited the Future Ireland Fund and the Infrastructure, Climate and Nature fund as two long-term savings reserves that will “invest windfall receipts to help prepare for the future structural and fiscal challenges that are on the horizon”.
“€10.5 billion split as €8.5 billion for the Future Ireland Fund and €2 billion for the Infrastructure, Climate and Nature Fund is currently invested in accordance with the interim investment strategies,” he added.
Jack Chambers said today’s Exchequer figures demonstrate sustained high levels of investment in the delivery of public services “at a critical time for our economy and for global trade”.
“The actions announced yesterday by President Trump have the potential to cause serious damage to Irish, EU and global economies,” the Public Expenditure Minister said.
“As a country, we have overcome a series of challenges in recent years and now we approach this from a position of strength. We know we face significant challenges and economic uncertainty in the short and medium term.”
He said it’s essential that Ireland – at a national and an EU level – respond “in a careful and responsible way”.
“Equally critical is that we focus on enhancing our competitiveness, supporting diversification and innovation of our enterprise sector, and investing in our national infrastructure so we remain a highly attractive location for investment.”
Unsurprisingly, Finance Minister Paschal Donohoe and Public Expenditure Minister Jack Chambers have been commenting on the tariff announcement amid the publication of the Q1 Exchequer returns.
Donohoe said the Government will act “with the urgency that is required to assess the potential impacts on our indigenous and multinational sectors” and engage with other EU countries to review the best way to respond.
“Yesterday’s announcements represent a marked acceleration in the recent trend toward global economic fragmentation,” he said.
“We now need to do all we can to maintain Ireland’s standing as a competitive and supportive environment for inward and indigenous investment and quality employment. The response, therefore, must be to focus on what we can control and influence.”
He said the Government is putting measures in place that include addressing “the major infrastructural bottlenecks in key strategic areas” such as energy, water, housing and transport. “Investing in education, skills and training will also be key to maintaining the quality of our workforce,” he added.
This is clearly an exceptionally uncertain period for our economy, but today’s figures show that, because of the careful management of our public finances, we are approaching the challenges ahead from a position of strength.
Amid all the chaos surrounding Trump’s tariffs, Ireland’s Exchequer returns have just been published.
According to the Department of Finance, our total tax take to the end of March was €23.6 billion – up €3.5 billion on last year.
When the gain from the Apple tax ruling is excluded, Revenue collected €21.9 billion in tax in the first three months of the year – a €1.8 billion increase on last year.
Income tax receipts in the first quarter of the year were €8.2 billion, €300 million more than the first three months last year.
Meanwhile, businesses paid €3 billion worth of corporation tax on their profits in the three months to the end of March – up €600 million on the same period in 2024.
Including the Apple tax ruling gain, corporation tax returns for the first three months of the year was €4.8 billion.
VAT in the first quarter stood at €7.6 billion, up €500 million on 2024.
Brazil’s Lula da Silva has said that his country will take “all appropriate measures to defend” itself against Trump’s import tariffs.
The US President announced yesterday that he would impose a 10% tariff on South America’s largest economy.
“Faced with the decision of the United States to impose an additional tax on Brazilian products, we will take all appropriate measures to defend our companies and our workers,” da Silva said at an event in the capital, Brasilia.
Yesterday, Lula’s government said it “regrets” the additional tariff, and was “evaluating all possible actions to ensure reciprocity in bilateral trade, including recourse to the World Trade Organization.”
Brazil is the second-largest exporter of steel to the US after Canada, shipping four million tonnes of the metal last year.
It imports a large number of steel-based manufactured products from the US, including industrial machinery, car engines and parts for its aerospace industry.
French President Emmanuel Macron has called for suspending investment in the US until Trump’s “brutal and unfounded” new tariffs against Europe and the rest of the world were clarified.
“Future investments, investments announced in the last weeks, should be suspended for a time for as long as the situation with the United States is not clarified,” said Macron, adding that Americans will be “weaker and poorer” after Trump’s tariff announcement.
Auto giant Stellantis has said it is pausing production at some plants in Canada and Mexico, the first disruptions to hit the sector since Trump’s tariffs on foreign-made cars came into force.
The announcement from Stellantis – which owns Chrysler, Jeep and Dodge, among other major brands – will impact thousands of workers.
“Stellantis continues to assess the effects of the recently announced US tariffs on imported vehicles,” a company statement said.
“Immediate actions we must take include temporarily pausing production at some of our Canadian and Mexican assembly plants,” it added.
Vehicle production in North America is highly integrated and the full impact of Trump’s 25% on foreign-made vehicles and parts, which came into effect today, remains unclear.
Individual parts can cross the US-Canada border several times during the assembly process.
Officials have said Trump’s tariffs will apply only to a vehicle’s non-American components, but implementing that policy may be complicated.
Stellantis said it would “continue to engage with the US administration” on its new auto sector policies.
The company confirmed the Chrysler plant in the Canadian city of Windsor, across a river from US auto capital Detroit, will pause production from 7 to 21 April.
The factory, which employs around 4,000 people and is one of three Stellantis has in Canada, manufactures the Chrysler Pacifica minivan and the electric version of the Dodge Charger.
The sell-off in Wall Street stocks has deepened, with the S&P 500 losing more than 4% following Trump’s sweeping tariff announcement.
Trump’s broadly crafted new levies battered leading names in banking, technology, apparel and most other areas. Among the S&P 500′s 11 sectors, only consumer staples were in positive territory, with the other 10 in the red.
Here’s how the top three US stock market indexes are currently looking:
The UK government has just published a list of products that they could slap with import taxes in retaliation against Trump’s 10% tariffs on British goods.
The product list is over 400 pages long and wide-ranging, including pure-bred breeding horses, meat, fruit and vegetables, wine, cheese, clothing, Christmas trees, furniture, crude oil, guns whiskey and bourbon.
MEP Maria Walsh has called on the European Commission to explore the use of EU funds to protect the agriculture and food and drinks sectors.
“For many, Trump’s tariff announcements will be reminiscent of the Brexit years as we once again face two different realities on the island of Ireland,” said Walsh.
“While the US has imposed tariffs of 10% on the UK, south of the border, businesses in the Republic have been hit with a 20% rate.
“Our agriculture sector is now exposed to the Irish border once again, as businesses could face a significant trade disadvantage compared to their Northern Ireland counterparts.
“However, the details remain unclear given trade rules for the North agreed under the Windsor Framework.
“The European Commission should consider the use of EU funding to compensate the hardest hit sectors, in particular the agriculture sector – either via crisis reserve or similar to what was done through the Brexit Adjustment Reserve.”
Walsh said she has written to colleagues on the Agriculture Committee to request an emergency debate on this issue.
Over in Italy, Prime Minister Giorgia Meloni has cleared her diary to focus on the response to a hike in US tariffs on EU goods, as her government warned against a trade war.
Meloni last night criticised the tariffs said Rome would do everything to seek a deal with Washington, warning that a trade war “would inevitably weaken the West in favour of other global actors”.
She gathered her key ministers today to discuss their approach and afterwards, Industry Minister Adolfo Urso called for calm.
“Responding to tariffs on goods with other tariffs on goods exacerbates the impact on the European economy,” he told the Senate.
“The first rule is not to harm ourselves further, triggering an escalation of retaliation that would unleash a devastating trade war.
“We must react, yes, but in an intelligent way, remaining calm, to fully assess the direct and indirect consequences of the American measures and therefore the best response.”
US Vice-President J D Vance has urged Americans to be patient as the US braces for the impact of Trump’s tariffs.
“Yes, this is a big change. I’m not going to shy away from it, but we needed a big change,” he told Fox News.
He also cautioned that things aren’t likely to get better “overnight”.
He added: “We cannot keep going down the Joe Biden globalist pathway where we have $2 trillion of peacetime debt and deficits.
“For 40 years, we’ve had an economy that rewards people who ship American jobs overseas and raises taxes on American workers and we’re flipping that on its head.
“They’re also going to benefit from the fact that foreign countries can’t take advantage of us anymore. That means their jobs are going to be more secure.”
Mexican President Claudia Sheinbaum welcomed the fact that her country had not been included on the list of nations targeted in Trump’s latest round of tariffs.
“That’s good for the country,” Sheinbaum told a press conference, attributing the news to her government’s “good relationship” with the US administration.
Shares of US clothing companies that rely on supply chains in China, Vietnam, Malaysia and other countries plunged as markets digested the tariff announcement.
Companies such Nike, Gap and Macy’s fell by more than 10% after Trump announced double-digit tariff increases on countries where the chains import clothing items.
Sweden’s Volvo Cars, owned by China’s Geely, will increase its production of vehicles in the US and probably produce an additional model there, CEO told media today.
As of today, cars manufactured outside the US are subject to a 25% tariff, while a tariff on spare parts is also set to gradually come into effect.
“We will have to increase the number of cars we build in the US, and surely move another model to that factory,” CEO Hakan Samuelsson told Bloomberg.
Volvo Cars declined to provide any further details about its plans,
The carmaker warned in February that it expected a challenging year in 2025, notably due to the threat of tariffs and the slowing pace of electrification.
Volvo Cars, which has moved towards specialising in electric vehicles, gave up last September its goal of selling only electric vehicles by 2030, and has now set its target to between 90% and 100% by the same year.
The bell has sounded on Wall Street in New York and trading is now officially under way in the US.
In the first few moments of trading the Dow Jones has fallen 2.8%, the S&P 500 is 3.3% lower, and the Nasdaq – which is dominated by tech stocks – has dropped 4.4%.
Elsewhere, Apple dropped more than 8% after opening – the company behind the iPhone makes its devices in China and other Asian countries.
The stock is on pace for its steepest drop since 2020.
There was also an 11% drop for Nike.
The dollar also slumped by as much as 2.6% versus the euro, its biggest intraday plunge in a decade, and suffered sharp losses also against the yen and British pound.
Volkswagen has said it is examining the impact of new US tariffs on foreign cars after the German auto giant was reported to be planning price hikes to offset higher import charges.
Asked about the reports, a Volkswagen spokesman said the carmaker was assessing its options.
Citing a Volkswagen memo to dealers in the US, trade publication Automotive News reported that manufacturer planned to add an “import fee” to cars it ships into the country.
Volkswagen also indicated it would pause rail shipments of vehicles made in Mexico to the US, Automotive News said.
Trump gave German auto manufacturers another headache yesterday after he slapped 25% tariffs on car imports into the country.
Carmakers like Volkswagen are already struggling with a stuttering shift to electric vehicles as well as fierce Chinese competition.
Volkswagen, a 10-brand group which also includes Seat and Skoda, said in December that it would cut 35,000 jobs by 2035.
Last year, the firm sold just over one million vehicles in North America, representing 12% of its sales by volume.
White House Press Secretary Karoline Leavitt has to reassure US markets, telling CNN: “To anyone on Wall Street this morning, I would say, ‘Trust in President Trump.’ This is a president who is doubling down on his proven economic formula.”
She said the tariffs meant “the United States is no longer going to be cheated by foreign nations.”
Leavitt meanwhile appeared to rule out the possibility of Trump pulling back any of the tariffs before they are implemented over the coming weekend.
“The president made it clear yesterday this is not a negotiation,” she said.
“These countries around the world have had 70 years to do the right thing by the American people and they have chosen not to.
“They have ripped off American workers. They have taken our jobs overseas. The president is putting an end to that yesterday.”
Switzerland, which is not a member of the EU, is not planning to retaliate against the steep tariffs announced “at this stage”, the country’s government announced.
“An escalation is not in Switzerland’s interest,” President Karin Keller-Sutter told reporters, with the government adding in a statement that “countermeasures in response to US tariff increases would result in costs for the Swiss economy… The (government) is therefore not planning any countermeasures at this stage”.
Trump yesterday slapped tariffs of 31% on imported goods from Switzerland.
And while the world grapples with Trump’s tariffs, the US president said the “healing” begins and America will emerge “stronger”.
He acknowledged the shock brought by his tariffs but said the US economy would emerge “more resilient than ever,” even as world markets tumbled.
“THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE,” Trump posted on his Truth Social platform less than an hour before Wall Street opened for trading.
The EU was last night hit with 20% tariffs, but the situation was even more pronounced across some other countries.
Cambodia was among the nations hardest hit by “Liberation Day” tariffs, singled out for a 49% levy.
Penn Sovicheat, a Cambodian commerce ministry spokesman, said the harsh US tariffs on his country were “not reasonable”.
Cambodia had about $10 billion in exports to the United States last year, mainly garment products, he said, while American imports came to around $264 million, taxed at average of 29.4%.
“The 49% tariffs is not a good image for Cambodian industry or our investment attraction,” he said.
Cambodia is a major manufacturer of low-cost clothing for big Western brands, but at a press briefing, a White House official accused the kingdom of being a front for Chinese-made goods.
“China has turned Cambodia into the most important transshipment hub that Communist China uses to evade our tariffs,” the official said.
Speaking on RTÉ’s News at One, Finance Minister Jack Chambers said it is his understanding that medical devices are “not included in the general exemption for pharmaceuticals”.
He told the programme: ”My understanding is that they are not included in the exemption but we’ll need a technical breakdown from the US to get absolute clarity on that, but their current interpretation is that they’re not included.”
It comes as Martin said he was stressing the “complexity” of the sector to the US.
Martin says Ireland is not in favour of a digital services tax being imposed.
McGrath says if the trade relationship between US and EU fails there will be multifaceted problems not just for big business.
Micheal Martin says Ireland is not in favour of a digital services tax being imposed.
— Christina Finn (@christinafinn8) April 3, 2025
McGrath says if the trade relationship between US and EU fails there will be multifaceted problems not just for big business. pic.twitter.com/FYpoxeUxFD
Martin says figures Trump presented last night didn’t reflect “reality”.
He adds that tariffs are “attacks on people and businesses”.
He calls for Ireland and to EU to “enhance competitiveness in other markets”, like India and Indonesia.
He notes that Trump didn’t include services in his figures, and the trade deficit between the EU and US when services is included to goods is €50 billion.
“People get hurt when tariffs are imposed, they can lose their jobs, prices can go up, cost of medicines can go up, so lots of bad things happen when tariffs are imposed in an unjustified manner like this,” says McGrath.
He adds that the EU is “not at the point of looking at other instruments” and it will work with the US to “deal with the challenges that there there”.
“There is a lot to work through, but we should do it together,” sayd McGrath, who adds that relationship between EU and US is vital to global economy.
Martin says he will maintain engagement with the US over the pharma sector and that the “key objective has been to convey the complexity of the pharma story”.
He says the items sent to the US are often “vital” for finishing products in the US.
He adds that the infrastructure in Ireland is not easily replicated and can’t happen overnight.
“Ireland will not be shy in terms of our interest, but also our strategy,” says Martin.
He adds he wants to bring people to the table and that his “sense” from the US is that negotiation is the preferred route forward.
Martin, speaking at the moment, says there has to be a “collective response” from the EU and that it is looking for a “negotiation pathway”.
“There has to be solidarity, but we have made our views known to the EU at a Commission level,” added Martin.
McGrath says his focus is “preventing the harm, rather than responding to the harm”.
He said the tariff impacts “will take some time to work through the systems” and it is premature to talk about an EU fund – “there aren’t many potential sources of funding.”
Taoiseach adds it’s too early to talk about supports as it’s still early days.
Meanwhile, EU Commission Michael McGrath says the Commission is preparing countermeasures that will be used if negotiations fail.
“We can and will weather this storm,” says Taoiseach Micheál Martin.
He adds that the Irish economy is resilient, but tariffs will have an impact.
‘We can and will weather this storm,’ the Taoiseach says.
— Christina Finn (@christinafinn8) April 3, 2025
The Irish economy is resilient, but tariffs will have an impact, he says. pic.twitter.com/jT5YvmbYbS
Echoing a call from his party colleague Pearse Doherty, Sinn Féin Senator Conor Murphy, the former Economy Minister in the Northern Executive, said a meeting of the North-South Ministerial Council should be convened without delay.
“The immediate focus now for the Irish government and the Northern Executive is that both institutions work collaboratively to protect jobs and businesses across the island, and that we protect the all-Ireland economy,” said Murphy.
“The reality is that the approach by the US government is the latest in a series of economic shocks that we have seen with Brexit, the pandemic, conflicts in Ukraine and the Middle East, and these are not going to end anytime soon.
“That means the onus is on the Irish Government to assess the vulnerabilities in our economy, in particular the concentration of corporate tax receipts among a small number of multinational corporations, and the lack of diversification among the FDI base in terms of sector geography and region.
“We must also address the infrastructural deficits in areas such as housing, energy, water, ports and airports, and to take the necessary steps to support our indigenous businesses.
“We must examine the current all-Ireland economic model, which leaves us particularly exposed in a growing uncertain world.”
Meanwhile, Dublin MEP Aodhán Ó Ríordáin has said that Trump’s “destructive tariffs fuel a trade war that shackles workers, families and businesses across the globe”.
“This recklessness could trigger the worst economic crisis since the 2008 financial crash, he added.
“Ireland never imagined it would be forced to choose between its two closest allies. But Trump’s decision yesterday shattered that illusion.
“We have to recast our collective mindset and reject the false notion we are between Europe and America. We are European and our response will be European.
“The EU is the world’s largest trading bloc. It has a broad toolbox at its disposal and it must be ready to respond calmly, decisively, and strategically.
“While we must push for a negotiated solution, we cannot allow Trump to dictate the terms.”
Meanwhile, back at home, Social Democrats’ acting leader Cian O’Callaghan warned that the government cannot risk Ireland’s pharma and tech sectors being dragged into a cross-Atlantic trade war of attrition,
“The implications of a lower 10% 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 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% of our goods exports – this is deeply concerning.
“It is crucial the pharma sector does not get caught in the crossfire of a tit-for-tat trade war of attrition between the EU and the US.
“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.”
And in some more international reaction, Poland’s Prime Minister Donald Tusk has labelled the US tariffs as “a painful and bitter blow”.
“The new US tariffs could lower Poland’s GDP by 0.4%. A painful and bitter blow, because it’s from our closest ally. But we will survive it. Our friendship must also survive this trial,” Tusk said on X.
Speaking earlier during Leaders’ Questions, Sinn Féin’s Pearse Doherty raised the case of Northern Ireland and questioned what impact the 10% tariffs there will have on the all-Ireland economy.
“Now that we have two different tariff rates on this small island of ours, and potentially two different responses to those rates, I’ve been in contact with my party colleague, the Minister for the Economy in the North and I’m asking that your government here work very closely, hand in glove and in lockstep with your counterparts in the [Northern Ireland] Assembly,” Doherty told Harris.
He called on the government to convene an urgent meeting of the North South Ministerial Council.
Duncan Smith again asks Harris about a wage subsisy scheme will be implemented, and Harris said he didn’t want to give a “knee-jerk reaction” and that priority is to “mitigate” the tariff impacts.
Harris also warns of a slow down in new job employment due to the tariffs.
Labour’s Duncan Smith says we “need to learn from the lessons of the past” and invest in infrastructure here at home.
He then asks if a short-term wage subsidy scheme might be implemented for sectors that may be impacted by tariffs.
Harris replies that the trading partnership with the EU can’t be “sniffed at” and that Trump has “had his little moment” and now is the time for negotiation.
He says all the EU, and the US, will be badly impacted and that safeguarding jobs is the priority and that various measures will be looked at over the coming weeks.
“We need to mitigate this, and not accept it,” said Harris, who voiced concern that any “support scheme” would be enough to protect jobs.
Leaders’ Questions is taking place in the Dáil, and Tánaiste Simon Harris said Ireland “shouldn’t be lulled into a false sense of security” or “fool ourselves” that there won’t be sector specific tariffs on the pharmaceutical sector.
“We want to talk, we want to negotiate, we want to find a way forward,” Tánaiste Simon Harris tells the Dáil during Leaders’ Questions.
He says government is already taking stock of the impacts, which will be discussed with businesses in the coming days. Harris adds that he has just spoken with Northern Ireland economic minister Caoimhe Archibald about the issue.
Sinn Féin’s Pearse Doherty asks whether non-tariff responses from the EU are being discussed, as he claims countermeasures will only push the American government away from the negotiations table and hurt Irish consumers.
Harris, who is also trade minister, says he has had regular communication with the European trade commissioner on a near-daily basis and the clear plan is to seek negotiations with the US first, then decide the next move for Europe.
Speaking in the past few minutes, Spanish Prime Minister Pedro Sanchez said the sweeping new tariffs announced by Trump were a “unilateral attack” by Washington against Europe.
This measure marks a return to “19th century protectionism, which in my opinion, is not an intelligent way to meet the challenges of the 21st century,” the Socialist leader added as he announced a package of measures worth €14.1 billion euros to support Spanish sectors hurt by the tariffs.
A spokesperson for trade in the EU says: “The EU wants to engage in talk, not tariffs.”
“Unjustified tariffs inevitably backfire,” Šefčovič says.
“We’ll act in a calm, carefully phased, unified way, as we calibrate our response, while allowing adequate time for talks. But we won’t stand idly by, should we be unable to reach a fair deal.”
Unjustified tariffs inevitably backfire.
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) April 3, 2025
We'll act in a calm, carefully phased, unified way, as we calibrate our response, while allowing adequate time for talks. But we won't stand idly by, should we be unable to reach a fair deal.
I'll speak to my U.S. counterparts tomorrow. pic.twitter.com/tA9l40wvRE
In a statement in the last few minutes, European trade commissioner Maroš Šefčovič has said he will be speaking to his American counterparts tomorrow.
Bloomberg reports that global markets are tumbling, in all forms, following Trump’s announcement yesterday (just look in the right-hand side).
While market is still yet to open in the US, European stock markets slumped at the start of trading this morning.
Dublin’s ISEQ has lost just under 1% as of this morning, while London’s FTSE 100 lost 1.2% after Trump hit Britain less hard than the EU.
Frankfurt’s DAX index was the biggest faller, shedding 2.2%, while the Paris CAC 40 retreated 2%.
Yesterday’s tariff announcement impose the highest additional costs on companies in decades and the markets’ activity makes add more instability. In Ireland, government has been highlighting how this uncertainty is leading to hesitancy in inward investment.
As previously reported on this liveblog, the numbers on Trump’s big board of tariffs don’t make… sense?
Holding a chart with a list of countries and the tariffs the United States will be charging them, he claimed that the European Union charges tariffs of 39% on goods imported from the US.
He said the US will charge 20% tariffs on European Union imports in return. “We’re charging them essentially half,” he said, saying the “reciprocal tariff” is 39%.
The World Trade Organization says the EU’s average tariff rate is 5%, while the European Commission says the average tariff on goods traded between the EU and the US is about 1% for both sides.
So, The Journal‘s Political Correspondent Jane Matthews asks whether the numbers on the board are accurate (spoiler, they are not).
These tariffs are impacting a number of different products, but the AFP news agency highlights one in particular: Italian parmesan.
Nicola Bertinelli, head of the Parmigiano Reggiano, said Trump’s announcement of a 20% tariff on all EU goods meant US duties on their products would rise from 15 to 35%.
“Imposing duties on a product like ours only increases the price for American consumers, without truly protecting local producers. It is a choice that harms everyone,” he said.
Parmigiano Reggiano, which enjoys a 7% market share in ‘hard cheeses’ in the US, said price increases would not hit sales – as it is seen already as a premium product. But, the duties “make no sense” as there is no competition to the cheese in the US, Bertinelli said.
Head of Rabobank’s Forex trading strategy Jane Foley, a commercial bank with offices in Dublin, said some markets have already been impacted as a result of the US tariffs.
She said some of Trump’s accusations about currency manipulation, specifically, were not as accurate as he claimed.
She told Bloomberg that professional traders will be keeping a close eye on the US dollar, to see if the Trump administration begin to make changes to its value if tariffs do not have the short-term impact they hope for.
She said a European response will also be based on a number of different factors, including the market’s performance.
Finland’s foreign minister Elina Valtonen told the same news channel that member states are open to negotiation. “Now should be the time that we work together,” she said.
Speaking last night, US Treasury Secretary Scott Bessent urged other countries not to retaliate to Trump’s tariffs and to “take a deep breath”.
The EU has said it wants to push for negotiations before making a decision to issue countermeasures. Bessent told CNN that retaliation leads to escalation and that other nations should “see where this goes”.
He disagreed with the characterisation that a response would lead to a ‘trade war’, claiming it depended on the country issuing countermeasures, but stressed that most nations which had tariffs imposed are already at an advantage with a US trade surplus.
Political Editor Christina Finn here. I’m tuned into Finance Minister Paschal Donohoe who is taking questions in the Dáil chamber right now.
Sinn Féin’s Pearse Doherty asks the minister to confirm that despite the tariffs, it is still expected that employment rates and GDP will grow, but at a slower rate.
Donohoe says the analysis from his department predicts GDP and employment are expected to continue growing, albeit at a reduced rate. The employment impact is projected to be around 55,000 to 85,000 jobs either not created or lost.
However, the minister points out that those assumptions in the ESRI paper, were based on predictions that stable investment levels would continue. He stated that he may not hold true due to global economic changes.
Doherty asks the minister about his concerns about EU countermeasures. The Sinn Féin deputy says he is deeply concerned the counter measures will impact on jobs, will impact on economic growth, and will impact on the public finances.
He asks will the government support measures from Europe that will damage the Irish economy and Irish jobs. Donohoe instead fires back at Doherty and criticises his party for boycotting the White House this St Patrick’s Day, while now he is speaking about getting around the table with the US for negotiations.
Doherty says it is interesting that the minister refuses to answer his question about agreeing to measures that will damage Ireland.
CNN’s Early Start is reporting on how the EU is responding to the US tariffs and how might European countermeasures impact American businesses. Details of the DOW, NASDAQ and S&P500 reported by the channel show that stock market values are falling.
Fox News leads with the headline: “The Global Rip-Off Ends Today”
“It’s an incredible day in the American economic history. We’re finally stopping the trade war. We’re not starting one, we’re stopping it,” the US’s national economic council director Kevin Hassett tells the station.
He details that the US disagree with the European and global regulations placed on good imported in their countries. He says that this is contributing to large trade deficits between America and its economic partners.
The memes are already rolling in on that chart.
The bartender at the microbrewery showing me the 100 ipas they serve right before I ask for a Guinness pic.twitter.com/cJ9DFHfhDD
— Miscounted Cash Flow (@Miscountedcf) April 2, 2025
Later this afternoon, Taoiseach Micheál Martin will be meeting with Ireland’s European Commissioner and partymate Michael McGrath.
McGrath, the justice, democracy and rule of law commissioner, has a limited remit when it comes to managing economic affairs. But his background as one of the Irish money ministers has seen him focus on providing European businesses better access to funding.
Both Fianna Fáil politicians are expected to make a statement to media later today.
The New York Times reports the most-likely method that the US tariffs were calculated.
White House officials took the dollar value of the trade deficit from the EU and divided it by the dollar value of the imports from Europe. Trump then claimed that the percentage value of that answer was the ‘tariff’ imposed on the US by Europe.
The US then divided it by two to calculate its tariff. This method, however, completely contradicts the claims by Trump on the podium last night that these were tariffs imposed by EU member states on America.
Speaking earlier, Tánaiste Simon Harris said the speech last night represented a “very grim assessment and understanding of the global trading environment”.
On the issue of Northern Ireland, enterprise and employment minister Peter Burke said the EU-UK Windsor Framework – agreed after Brexit – provides Northern Ireland with dual-market access and outlines the playbook for trade wars.
He explained that companies in the North can apply for a “rebate” of the difference between any reciprocal tariffs from the UK and the EU.
He said the compensation mechanism is a clear part of the Windsor Framework, but did not forsee the level of economic uncertainty seen in the context of these US tariffs.
Burke said there is a “pipeline” of US companies looking to join the Irish market but are withholding investment at this time due to that level of uncertainty. He said existing multinationals are also proceeding with the same caution.
“We just have to be careful on how do the EU responds. What I’m being clear to people on is that I still see a pipeline for US investment into our economy,” he said, adding that it will be “challenged” from countries, such as Singapore, who were issued lower tariffs.
Speaking on RTÉ Radio One’s Morning Ireland, enterprise and employment minister Peter Burke said the US is posturing to the world, already, that it is ready to negotiate on these tariffs.
He said comments from the American commerce secretary Howard Lutnick and treasury secretary Scott Bessent have spoken about negotiations. Burke added that the EU also needs to seek clarity on where the US got their ‘tariff’ figures from.
Burke said: “Watching last night – listening to the news reports and watching the key interview with Howard Lutnick and with the Secretary of the Treasury – they have critically said and were very clear that there is an opportunity to negotiate.
“That’s where we have to try and move this on to because we need to de-escalate these uncertainties and these tariffs.”
Good morning, Muiris Ó Cearbhaill here to take you through the latest on US tariffs.
I’ve just returned from Government Buildings in Dublin where Tánaiste Simon Harris was speaking to reporters. As previously reported on this liveblog, he is adamant that Trump has now had his “moment” and that it’s time to negotiate.
Harris said the EU “cannot stand idly by” but commended the response from European Commission president Ursula von der Leyen, who also called for negotiations to take place.
The Tánaiste, who is also trade minister, recognised that Ireland is in an unique position in relation to Northern Ireland – as the White House has implemented a 10% tariff on the UK, and double that in the EU.
There are concerns over how might a response to tariffs from the EU impact Northern Ireland, deputy first minister Emma Little Pengelly said yesterday. First Minister Michelle O’Neill, Little Pengelly and Northern Ireland economy minister Caoimhe Archibald spoke with Harris yesterday.
Speaking in Dublin, he said: “I had a very useful video conference with the three of them, I thank them for their time. We have agreed to keep in very close contact, I expect to speak to them again in the coming days – probably before I go to Luxembourg on Monday, or certainly on Monday.
“I think we need to keep a very close eye on this. Northern Ireland is obviously in a distinct and unique position – we all know why. And it’s important that we work our way through those scenarios.
“But we also have to be honest, if the European Union finds itself in a position in a situation where the United States won’t negotiate in a meaningful way, of course we will have to respond.
“But the efforts from me, the EU, the efforts from Ireland as part of the EU will be to try to get to negotiate a way forward and, obviously, that will have benefits for Northern Ireland too. It’s a dynamic, fluid situation and that’s why I reached out to Michelle, Emma and Caoimhe yesterday.”
Trump’s announcement last night included “reciprocal” tariffs of 10% on a small collection of Antarctic islands that are not inhabited by humans.
The Heard and McDonald Islands, a volcanic group of mostly barren islands, have been an Australian territory since 1947 and are home to four types of penguins and a range of seabirds – but have never had a permanent population of people.
The islands are among the most remote places on Earth – they are located about 4,100 kilometres southwest of Australia, 4,200 km southeast of South Africa and 1,630 km north of Antarctica.
It’s led to some head scratching fro Australian politicians, with prime minister Anthony Albanese saying it “exemplifies the fact that nowhere on Earth is exempt from this”.
Tánaiste and trade minister Simon Harris has been speaking at Government Buildings.
In comments to reporters, he repeated the need for negotiations and said Ireland and the EU were still preparing for the introduction of tariffs on pharma products at a later date.
He also said that Ireland would be working with EU at all times and would not take a side deal with Trump.
Tánaiste Simon Harris says Trump has had his ‘moment’ and it’s now time to get around the negotiation table to avoid economic hardship. @thejournal_ie pic.twitter.com/JSttqzoNen
— Muiris Ó Cearbhaill (@muirisoc) April 3, 2025
US Commerce Secretary Harold Lutnick – who you may recall described Ireland’s tax regime as a ‘scam’ last month – was in the front row for Trump’s Rose Garden event, and took to Fox News afterwards to sell the new package of tariffs.
“They hate our beef because our beef is beautiful and theirs is weak,” he said of the EU in the course of his interview on the channel.
Lutnick: "European Union won't take chicken from America ... they hate our beef because our beef is beautiful and theirs is weak." pic.twitter.com/dcB7gX4LhR
— Aaron Rupar (@atrupar) April 3, 2025
“An unprecedented challenge” is how the Irish Exporters Association are describing what now lies ahead, in the wake of last night’s announcement.
“The announcement marks a pivotal moment for Irish exporters and the broader economy,” the body’s CEO, Simon McKeever, said in a statement.
“Despite weeks of meticulous preparation and thorough supply chain analysis by many exporters, the introduction of 20% tariffs will bring a business-defining challenge for all exporters.
“Whilst we welcome that pharmaceuticals are for the moment not subject to this tariff, there are many Irish owned exporting companies who are now faced with an unprecedented challenge.”
Some strong language from France this morning.
The European Union is “ready for a trade war” with the US and plans to “attack online services” in response to Donald Trump’s announcement, the French government spokeswoman has said.
“We are pretty sure that we are indeed going to have an adverse effect on production,” Sophie Primas told broadcaster RTL, expressing particular concern about the impact of the tariffs on wine and spirits.
Droits de douane américains : "Face à cette guerre commerciale, on va attaquer les services numériques, comme les GAFAM par exemple"@sophieprimas, porte-parole du gouvernement, invitée de @ThomasSotto dans #RTLMatin pic.twitter.com/XIWuNbL1Pk
— RTL France (@RTLFrance) April 3, 2025
In terms of reaction from Irish political leaders, we’re expecting Tánaiste Simon Harris to be out speaking to reporters shortly while the Taoiseach is expected to address the tariffs at an event in Dublin later today.
Our Political Editor Christina Finn is reporting this morning that there was something of a sigh of relief in government last night when it became clear that the US tariff rate on EU products of 20% has not been extended to pharmaceutical products.
Sources told Christina that there was a cautious welcome from those in government, but fear remains that tariffs could be levied on the sector in the near future.
Much of the discussion in the last couple of days centred around Ireland’s pharmaceutical industry.
It is something US President Donald Trump even mentioned in the Oval Office last month when the Taoiseach was sitting next to him.
You can read Christina’s full piece here.
Good morning,
Here’s a roundup of the global reaction to last night’s Rose Garden speech by Trump.
The tariffs are a “major blow to the world economy”, Ursula von der Leyen warned.
“There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all US trading partners are hit,” she said.
After the 20% tariffs on EU exports to the United States, she said Brussels was “preparing for further countermeasures” but added it was “not too late to address concerns through negotiations”.
Beijing said it “firmly opposes” the new tariffs on its exports, and vowed “countermeasures to safeguard its own rights and interests”.
Trump unveiled particularly stinging tariffs of 34% on China, one of its largest trading partners, while a 10% base tariff on all countries also applies. That comes on top of a 20% rate imposed last month.
The tariffs “do not comply with international trade rules”, China’s Commerce Ministry said.
It urged Washington to “immediately cancel” them, warning they “endanger global economic development”.
The German Automotive Industry Association said the tariffs would “only create losers” and urged the EU to act “with necessary force, while continuing to signal its willingness to negotiate”.
The German chemical industry, which counts the United States as its largest export market, urged the EU to “keep a cool head”, stressing “an escalation would only worsen the damage”.
Trade minister Yoji Muto said the 24% tariffs on Japanese exports to the United States were “extremely regrettable, and I have again strongly urged (Washington) not to apply them to Japan”.
Japan’s chief cabinet secretary Yoshimasa Hayashi told reporters the tariffs may contravene World Trade Organization rules and the pair’s trade treaty.
The UK will “remain calm, and committed” to sealing a trade deal with the United States which could help “mitigate” a 10% tariff imposed on British exports to the United States, business minister Jonathan Reynolds said.
However, “we have a range of tools at our disposal and we will not hesitate to act”, he added.
Prime Minister Mark Carney warned the tariffs will “fundamentally change the global trading system”.
“We are going to fight these tariffs with countermeasures. We are going to protect our workers,” he said.
Prime Minister Anthony Albanese said the new tariffs were “not the act of a friend” and would hurt the close allies’ relationship.
“These tariffs are not unexpected, but let me be clear: they are totally unwarranted,” he said.
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