Battle to save Ireland's farms and pharma as Tánaiste to travel stateside in coming days

The European Union has not decided what, if any, reciprocal tariffs it should impose on the United States in the wake of Donald Trump’s "Liberation Day" announcement of 20% tariffs on all EU goods.

It is understood that Mr Harris will have a meeting with the US secretary of commerce, Howard Lutnick on Wednesday.

In Luxembourg tomorrow, the [Irish] Government will also tell the EU that a tariff war with Donald Trump must be avoided at all costs and that a "negotiated settlement" should still be the priority.

Cabinet ministers said last night that their communication from the US administration is that "negotiation rather than retaliation" would lessen the impact of President Trump’s tariffs on the EU, and specifically on Ireland.

"We understand that trade is an EU competency but it is open to Ireland to represent our case on specific sectors and, of course, see that pharmaceuticals form part of the discussion," said one minister last night.

"We don’t see Harris’s trip as moving outside of EU unity," said the minister, "but we want to make it clear that we don’t necessarily believe strong retaliation is the way to go. We believe negotiation and discussion is not only what international diplomacy is about but also international trade."

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US President Donald J. Trump.

Several Cabinet sources said last night that it is acknowledged across Government that Mr Harris’s recent phone call with Mr Lutnick "was incredibly positive".

There is a belief that the Trump administration has a "fondness" for Ireland and that a decision to delay any action on imposing tariffs on pharma – an extremely important industry in Ireland – was made specifically with Ireland in mind.

 Cabinet ministers and senior Government sources also told Extra.ie on Sunday that European Commission president Ursula von der Leyen has not gone to Washington to meet Donald Trump in either of his terms.

A source in the Tánaiste’s team said last night of Mr Harris’s trip: "It’s not a bipartisan negotiation because we negotiate through Europe, but it is a chance to, I suppose, exchange more information and insights about the twoget way relationship [between Ireland and the US].

"The Tánaiste will also stress again the fact that the pharmaceutical industry is much more interconnected than perhaps is sometimes presented.

"We will be reminding the US administration that 80% of what’s produced here goes back into US companies in terms of factories, jobs and added value. We will also point out that 60% of what the US pharma companies are producing in Ireland is for the European market."

The Government is also anxious to continue what it believes is a unique relationship with the United States administration.

A minister said last night: "It’s definitely important to keep the lines of communication open. Now, more than ever, it’s important to engage. And Ursula von der Leyen, she hasn’t met Trump in this since he became president again.

"So, like, if we can a face-to-face we have to take it. With the exception of the Taoiseach meeting Trump, which was all on television, the call between Mr Harris and Mr Lutnick was the most substantive conversation with two figures in our Governments and we want to drive home that relationship."

Ministers appear to be in unison that "negotiation rather than conflict" with the United States over tariffs is the path that Ireland favours.

"We are communicating this internally as best we can," said one.

"Within the EU, certainly the indications we are getting from within the administration is to keep talking to Trump’s people.

"This might not turn out as bad as some think. And certainly, if we can continue the abeyance on tariffs for pharmaceuticals, it would be an absolutely massive result for Harris."

Speaking to Extra.ie yesterday, the Tánaiste said of the evolving crisis: "Tomorrow’s meeting of trade ministers in Luxembourg is very significant.

"It’s the first opportunity for EU countries to try and agree a common platform and map out our initial response to the US tariffs decision.

‘Ireland very much shares the EU perspective that energy should be placed into talks rather than tariffs.

"President Trump has had his moment of reveal. Now it’s essential that there is substantial and meaningful negotiation and engagement," the Tánaiste added.

"So, in Luxembourg, I will advocate for the EU to seek negotiated solutions.

"While we are disappointed that we have reached this point, it is always essential to continue dialogue and negotiation."

Agriculture Minister Martin Heydon, who is meeting his American counterpart Brooke Rollins on Tuesday, also warned: "There is no point in simply demonising Trump. We have to negotiate. We do not control the narrative, but we can influence it."

In that regard, he said: "Europe must stay united and come in from a position of strength.

"The status of agriculture as Ireland’s main manufacturing industry means the sector cannot be sidelined. Our plan in America is to build the sort of relationships which mean Irish produce won’t be sidelined."

Although Ms Rollins is a strong "America First" advocate and a close ally of President Trump, she also has strong Irish roots.

As well as meeting Ms Rollins, Mr Heydon will also be visiting Chicago and Kentucky, with one source saying: "This is a time to cultivate Republicans. Ireland has strong brands like Kerrygold [and] Republicans won’t want to be seen as being responsible for taking America’s favourite brand of butter off the shelves."

The meetings come as Irish exporters to the US are still coming to terms with the 20% tariffs imposed by Mr Trump and as the threat of further tariffs on pharmaceutical exports remains.

The chief executive of employers’ group IBEC, Danny McCoy, said the effect of the tariffs announced earlier this week will be felt immediately by some companies which will have consequences for their workers in Ireland.

Mr McCoy said short-term working is a possibility for some staff.

"Demand will fall away very quickly for some products and so there just won’t be the work there," he said.

Mr McCoy also said that IBEC wants a support scheme to be put in place for such workers.

 "We are talking to the Government about having a support scheme immediately for workers. We really want people to remain connected to their employers because this will pass.

"Even if tariffs stay in place for a while, new markets will be found and new opportunities."

* This article was originally published on Extra.ie.