On the campaign trail ahead of Friday's General Election, Taoiseach Simon Harris discussed the implications of a second Trump presidency on Ireland's economy while on Sky News on Sunday, November 25.
The GOP's 2024 "Make America Great Again" platform pledges to "rebalance trade" in America and "support baseline tariffs on foreign made goods."
The platform says: "As tariffs on foreign producers go up, taxes on American workers, families, and businesses can come down."
Economists, however, have warned that imposing tariffs will actually lead to higher costs for consumers.
During his Sky News interview on Sunday, Harris was asked if he thinks President-elect Donald Trump “means what he says when he talks about imposing tariffs on imports from the EU and attracting big US multinationals back from Ireland?”
Harris responded: “I think President Trump does mean what he says in terms of his position in relation to trade and tariffs. And I think President Trump has received a very large mandate in terms of the outcome of the US Presidential election.
“And I do, being very honest, think that the second Trump presidency may not be comparable to the first for a variety of reasons, including that increased mandate that he’s now received, including looking at the some of the key appointments that he’s making to his cabinet in terms of the direction of trade.
“And that’s why I’m preparing my country and working with EU counterparts to prepare the EU for that changed reality we may see.
“Ireland can approach this with confidence. There are many reasons firms locate in Ireland, including our access to the European Union. But also, we can never be complacent. And that’s why my party [Fine Gael] is setting aside a very significant amount into funds, future funds, to protect our country from any economic shock.
“I think President-elect Trump is a businessman. He is transactional in many ways. He approaches the world through the lens of a businessman.
“We will be making the point that Iirsh companies are now creating jobs in every US state, and that actually trade between the US and Ireland and trade between the US and the EU is good not just for people in the EU and Ireland, but it’s also good for people who voted for President Trump.”
You can watch Taoiseach Simon Harris on Sky News here:
In a Q&A with The Irish Times last week, the Taoiseach touched upon Ireland's long-term economy: "Every single day we’re taking decisions on the long-term future, and we’re actually very proudly setting aside billions each year into a fund called the Future Ireland Fund, so that if any shocks come to our economy ... we’ve set aside money."
The Future Ireland Fund - described by Ireland's Department of Finance as "a long-term savings fund to deal with recognized expenditure pressures including aging, climate, and the digital transitions" - was commenced in July.
The fund is touted in Fine Gael's party manifesto for this week's General Election: "Fine Gael established the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to protect public services over the long term and mitigate the pro-cyclicality of capital spending."
For each year from 2024 to 2035, 0.8 percent of GDP will be transferred to the Fund from the Exchequer. Taking account of annual contributions, growth in GDP, and potential return from investments, the Fund has the capacity to grow to €100 billion by 2040.
In October, Ireland's Minister for Finance, Jack Chambers TD, announced the completion of the first annual transfer from the Exchequer to the Future Ireland Fund of 0.8% of Gross Domestic Product (GDP), equal to a sum of €4.05 billion.
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