Simon Harris is to bring a memo to Cabinet today, April 1, outlining the scale of the potential impact on our economy from US tariffs – highlighting that Ireland exports 32% of its goods to America.
The Tánaiste’s memo comes ahead of ‘Liberation Day’ in the US tomorrow, April 2, when Donald Trump is expected to impose punishing tariffs across a range of goods exported from the EU.
The Fine Gael leader, who is also Minister for Foreign Affairs and Trade, is expected to tell colleagues Ireland must adopt a "calm and measured" approach, emphasising the importance of showing "unity" with the EU.
Government sources have said the EU is operating on the basis that a 20% blanket tariff will be initially applied to all member states, but uncertainty remains on whether country-specific tariffs will be applied.
The Cabinet will be told that 32% of Irish goods exports go to the US, while 17% of Irish imports emanate from the US.
This comes after meetings between the Tánaiste and trade and foreign affairs ministers from the Netherlands, Denmark, and Croatia yesterday.
Mr. Harris is also due to hold trade talks with Italian foreign minister Antonio Tajani. On Friday, he will host a meeting of the Government’s Trade Forum before travelling to Luxembourg on Sunday for a key meeting of EU trade ministers.
There, ministers are expected to make decisions about how the EU retaliates to the US tariffs.
Enterprise Minister Peter Burke last night met with Taoiseach Micheál Martin and Mr. Harris ahead of the tariff measures, to discuss competitiveness in our economy, and what the Government can do in the "areas we have control over," according to one well-placed source.
It comes as Mr. Martin said the EU would be "strategic" in its response, and that the bloc doesn’t want to "invite more damage."
Mr. Trump is expected to target some of Ireland's major employers, including pharma firms, and Mr. Martin said he wants to see negotiations emerge from the EU’s response. He also wants to see a "landing zone" agreed to enable companies and the economy to "enjoy a bit of stability."
Taoiseach Micheál Martin. (RollingNews.ie)
Mr. Trump has announced a 25% tax on all cars imported into the US, a measure expected to hit car makers across the EU.
Mr. Martin said there will be "competing interests" across EU countries who will want to protect their own industries.
"It would be challenging to try and get a negotiating platform at European level in response to these tariff positions," he said.
"Europe doesn’t want tariffs… but the US seems intent on imposing tariffs… I think Europe will not immediately respond, but take its time, and it’s in that period the member states… can be strategic in terms of how it responds. So a strategic response is very important… we don’t invite more damage in response."
Mr. Martin said the pharma industry in Ireland is strong and has been the hub for a lot of US manufacturing companies to access European and Asian markets.
He added that Ireland will intensify its bilateral contacts with the US, both with the government and with companies which would be severely impacted by tariffs.
It comes as Public Expenditure Minister Jack Chambers will outline to the Cabinet the process to update the National Development Plan. Sources said the review has "greater significance" in the context of the US tariffs.
*This article was originally published on Extra.ie.
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