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LAST UPDATE | 2 Apr
GOVERNMENT PREPARATIONS, meetings and engagements will ramp up in the coming days to deal with the fallout of the US tariff announcement this evening.
The Cabinet committee on the Economy will meet for the first time next week to assess the the implications for Ireland, while Tánaiste and Trade Minister Simon Harris will convene the third meeting of the Government Trade Forum on Friday.
The Government is in a holding position until it hears the extent of the US tariffs due to be announced by American President Donald Trump today.
Ministers received a stark warning about the “very, very significant shift” in US economic relations yesterday.
The Tánaiste briefed Cabinet about Ireland and the EU’s state of readiness ahead of the expected decision by the US administration, with a memo setting out in detail the sort of preparations that both the EU and Ireland are taking when it comes to protecting the economy against any potential trade shocks.
Speaking in the Dáil last night, the Tánaiste said tariffs will put jobs at risk and drive up the cost of business.
It’s vital that Ireland and the EU approaches this period of turbulence in a calm strategic and measured fashion, he said.
Harris held further discussions with EU Trade Comissioner Maroš Šefčovič over the phone this morning, where both stressed the importance of European unity.
During the call, Šefčovič updated Harris on the work taking place at an EU level in its preparation to respond to the US tariffs in the coming hours.
Commissioner Šefčovič updated Harris on the work ongoing at an EU level in its preparation to respond to the expected US announcement on tariffs in the coming hours, he said.
Over the next few days, Harris will ramp up his engagements and hold meetings with the Swedish Foreign Affairs Minister Maria Malmer Stenergard. His meeting follows on from engagements with is counterparts from Italy, Croatia, Netherlands, Denmark, and Slovakia.
The meetings that have taken place between the Tánaiste and other EU foreign and trade ministers so far have had a particular focus on pharmaceutical industries.
Harris has been speaking with over a dozen countries with strong pharmaceutical industries in order to exchange views on how best to respond.
On Friday, the government’s new trade forum, which includes business stakeholders, will meet to discuss the latest trade developments, with the meeting having a particular focus on big pharma.
Ireland serves as a global hub for US pharmaceutical investment, hosting major companies such as Pfizer, Johnson & Johnson, Merck, Bristol-Myers Squibb, Eli Lilly, Abbott, and Amgen.
Ahead of that meeting, Harris will also hold a meeting with Ireland’s EU Commissioner Michael McGrath.
Harris will then travel to Luxembourg for a high-level meeting of EU Trade Ministers, which is expected to rubber-stamp the EU response to potential US tariffs.
While the ESRI report outlines 80,000 jobs could be at risk, sources state that until the tariffs are announced today, it is difficult to assess the impact.
However, Finance Minister Paschal Donohoe said yesterday that he will work with Public Expenditure Jack Chambers ahead of October’s budget to assess what taxation measures might be appropriate.
He indicated that future income tax cuts could be in jeopardy, while he also stated that the unemployment rate could rise in the coming year.
The government is assuming that a 20% blanket tariff will be initially applied to all EU countries by the Trump administration.
A government spokesperson said it is the Taoiseach’s view that Europe doesn’t take any action that could end up hurting the bloc further.
They said the main threat is the uncertainty stops investment from big firms that are now pausing their decisions.
EU Commission chief Ursula von der Leyen said yesterday that the bloc still hopes for a “negotiated solution” to US tariffs.
However, she said “all instruments are on the table” to hit back if necessary.
“We are open to negotiations,” the European Commission chief told a European Parliament session, “but we have a strong plan to retaliate if necessary.”"We will assess tomorrow’s announcements carefully to calibrate our response,” said von der Leyen, adding she had been consulting with EU leaders on the “next steps.”
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