US President Donald Trump has announced the global tariffs will be imposed from April 2, in what he’s calling ‘Liberation Day.’
Pushing the tariffs back by one day in order to ensure that it is no April Fools Day joke, Mr. Trump will be imposing the blanket tariffs on all US imports — which may lead to an aggressive trade war and huge economic uncertainty.
But how bad will these tariffs be, particularly for Ireland, who are expected to be one of the worst hit countries?
What is "Liberation Day"?
Liberation Day, as Mr. Trump has dubbed it, will see him announce the plans for sweeping tariffs at around 8 pm Irish time tonight, April 2.
The US President has already implemented tariffs on aluminum and steel imports to the US, as well as all goods from China, and postponed a number of tariffs on the EU [European Union]. It’s understood that he will introduce tariffs by 20% across all countries rather than just certain countries or sectors.
He initially meant to do so on April 1, but decided against it in case people thought it was an April Fool’s Day joke. Yes, really.
How is the EU responding?
The EU has said that they will respond with retaliatory tariffs, including raising tariffs on imports from the US.
It is not known exactly how they will respond until Mr. Trump announces his tariffs, which will be known when he makes the announcement. However, it’s expected that pharmaceuticals will be a big target, which could mean bad news for Ireland.
How will the tariffs affect Ireland?
Experts have warned that Ireland could be one of the worst hit countries as a result of the tariffs, with Mr. Trump previously singling out the country’s pharma industry — which exports its products to the US.
The Tánaiste and Minister for Trade, Simon Harris, has been engaging with EU member states who are also concerned about their pharma sectors, with the country potentially aligning with France, which will have a dramatic hit on its alcohol exports.
The EU is threatening to hit retaliatory tariffs on US alcohol, particularly bourbon, with Mr. Trump threatening to hit 200% tariffs on EU alcohol imports in retaliation.
How has the government responded?
Well, there isn’t much to do regarding a response until said tariffs are implemented. However, ministers have been briefed on several scenarios that may happen.
Economic shock is almost certain as a result of the tariffs, but it’s expected to be over a period of time rather than in the minutes and hours after Mr. Trump’s announcement.
Taoiseach Micheál Martin admitted that the impacts are unclear, and while Ireland and the EU are expected to work together in response to the tariffs, at the moment, a "wait and see" response seems to be the best way to go.
"The impacts are unclear," Mr. Martin said.
"I hope there will be negotiations following the EU response, and we can navigate our way through this. The landing zone will not be where we are today. We need to be upfront about that.
"The old order is essentially gone for now."
* This article was originally published on Extra.ie.
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