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DESPITE BEST EFFORTS from the Irish government to hammer home the message that when both goods and services are taken into account, Ireland has a broadly balanced trade position with the US, it’s apparently not something Donald Trump cares about.
At an event hosted at the residence of the US Ambassador to Ireland in Phoenix Park, Edward Walsh, to celebrate the success of Irish companies across the United States, Enterprise Minister Peter Burke spoke about the close ties that bind the two nations, particularly when it comes to trade.
Burke said while Ireland runs a large goods trade surplus with the US, but noted that simultaneously it runs a large services trade deficit, stating that “facts” always come to the top.
His comments came after the ambassador’s opening remarks where he first spoke about the 100 days of rain Ireland had experienced before reading a prepared note on the tariff situation.
Walsh, who is understood to be a close friend of Trump, read the briefing note, stating the US president has invoked Section 122 of the TradeAct 1974 which will impose a 10% baseline tariff, which will last for 150 days.
Looking up to from the podium, he told attendees:
“And that’s all I have to say about that.”
In a room full of Irish business operators looking to expand into the US, the ambassador spoke about how the administration will continue to protect its own economy through protectionist measures.
Fresh US tariffs on imported goods came into effect today, as President Trump moved to rebuild his trade agenda after the Supreme Court ruled against a swath of his global duties.
While the ambassador noted the 10% tariff rate this evening, Trump has vowed to raise the level to 15%.
The event, which is part of a series of commemorative marking the 250th anniversary of American Independence, included a fireside chat with Mick Mulvaney, Former White House Chief of Staff, and US Special Envoy to Northern Ireland.
Speaking bluntly about what Trump cares about, and reflecting back on the Enterprise Minister’s words on services, Mulvaney said Trump “doesn’t care” about services.
He noted that it was something that former Taoiseach Leo Varadkar had highlighted with the president when in the White House.
“It’s goods,” he said, stating that the US president is “more focused on trade in goods, not services”.
While it may not have been a message the Irish government wanted to hear, Mulvaney had another warning.
The attitude towards trade has changed in the US, he said, stating that the move towards protectionism is here to stay, even after Trump’s time in office.
“I think that stays,” he said.
While Mulvaney said that people still want to invest in the US, there was no denying the uncertainty in the air when it came to Irish businesses.
Those The Journal spoke to this evening said while they would like to expand into the US, they need clarity on where the tariff rates will land, highlighting that the constant changes are off-putting.
The comment on services was also jarring to some, who noted that it is all money that is going to the US, one way or the other, whether it is physical goods or services.
This was a point also made by Minister Burke this evening who commented that the royalties and taxes on services are paid back to the US.
Burke said he doesn’t think anyone has exact clarity at this point of time on the tariffs.
“One thing we are very sure of, and this has been consistent over a long number of months, despite all the noise, despite threats that have been ever present on the environment, trade continues to flow, and it does so very freely between the EU and the US, and that’s important to be the operating reality on the ground,” he said.
“In reality, on the ground, trade continues to flow, about $4 billion every single day going across the Atlantic in goods and services,” he added.
When asked about the US-EU trade deal, the minister said he hoped it is not undermined by the most recent events.
“I think that framework is very important for the carve-outs that we have achieved. A lot of great work has been done in relation to the 15% deal, particularly in areas that are strategically important to the European economy. What we want to do is get certainty back,” said Burke.
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