EUROPE needs to take on the US in a tit-for-tat tariff war to push back against Donald Trump’s bullying, the leader of Ireland’s largest business group has declared.
It comes as the US President slapped a 25 per cent tax on European car manufacturers and warned that the Irish pharma industry is next.
Tanaiste Simon Harris warned the public that Ireland is facing into “a time of major uncertainty” amid concerns that tariffs on our pharmacy industry could devastate the economy.
Trump this week announced a 25 per cent tax on all foreign made cars entering the United States – a move that will hit the German and French motor industries hard.
The US President then warned that Ireland’s cash cow pharmacy industry will be his next target in a comment that has sent shockwaves through the heart of government.
He said: “We’re going to be doing tariffs on pharmaceuticals in order to bring our pharmaceutical industry back.
“We don’t make anything here in terms of drugs, medical drugs, different types of drugs that you need, medicines.
“It’s in other countries – largely made in China and a lot of it made in Ireland. Ireland was very smart. We love Ireland but we’re going to have that.”
It comes as Europe is braced for an announcement from the US administration next week on the details of a new tariff package that Trump has hailed as “liberation day.”
Chief Executive of IBEC – Ireland’s largest business lobby group – Danny McCoy today called on Europe to take on the US in the trade war and beat Trump’s “bullying.”
He said: “Europe has the collective power to take on the United States. It’s got a deficiency in terms of Defence.
We know that and Europe has been left exposed now to a partner that wasn’t trust worthy.
“But economically Europe is actually more powerful than the US if we act together.
“So that is different to Mexico, it’s different to Canada and it’s different to Britain.
“So one of the fortunate things of us being in the EU if – and that’s a big if – if we act collectively we have the economic power to take on the US and therefor it should be a tit for tat.
“Anything they do, we should match it. It seems counterproductive but it’s the only way to handle this type of bullying activity.”
The business leader said that companies are being put off by Trump’s unpredictability as he appears to change his mind “on a day to day, press release by press release” basis.
The IBEC boss said that the situation for Ireland now is extremely serious due to the impact that these tariffs could have on the economy.
He said: “This is very, very serious. This is serious in the way Brexit was for us and Covid was.”
An ERSI report on the impact of tariffs on Ireland last week warned that the trade war could result in 80,000 job losses in Ireland and take billions of euro away from the national exchequer.
Ireland exported more than €72 billion worth of goods to the U.S last year – with pharmaceuticals representing €58 billion of this trade.
‘SERIOUS’ IMPACT
European leaders today met in Paris to discuss the ongoing war between Russia and Ukraine, with Taoiseach Micheal Martin holding talks with leaders about Trump’s tariffs on the margins of the events.
The Taoiseach warned that the impact of US tariffs on pharmaceuticals will be “serious” for Ireland.
He said: “Europe will assess what will get announced next week and will then decide on its response with the overall objective of protecting jobs in Europe and protect jobs in Ireland from our perspective.
“We don’t understate the seriousness of such tariffs on the European economy and the Irish economy.
“The ERSI has done its calculations in respect of reduction of gross national income, GDP, and also potential overall dampening of investment across globally which will have its impact on Ireland.
“We are worried. We are concerned about it but we’re working flat out.
“I have been in touch with a number of multinational companies based in Ireland.
“We are keeping very close contact with the industry to identify in more detail the way in which particular exposures and particular companies in respect of what may transpire.”
The Taoiseach called on both the EU and the US to come together for talks to avoid a worsening trade war.
Tanaiste Harris warned the public that Ireland is facing into a “time of major uncertainty” as the EU US trade war deepens.
The Irish Trade Minister held high level discussions with his senior officials today shortly after arriving home from Lebanon where he was visiting Irish soldiers.
The Fine Gael leader spoke with US Commerce Secretary Howard Lutnick this week – a Trump adviser that has described Ireland as a “tax scam.”
The Tanaiste has been calling for further engagement between the EU and the US to avoid a trade war and today released a statement that said: “Talks rather than tariffs is the sensible way to proceed.”
Social Democrats TD Cian O’Callaghan earlier labelled Trump a “megalomaniac who is convinced that tariffs will turbo charge the American economy.”
The Dublin TD pressed the Finance Minister on what plans the Government is putting in place to help industries that are impacted by the trade war.
In response, Finance Minister Paschal Donohoe said the Government outlined in the run up to the election what they would do if the economy entered troubled waters.
He said: “The Government would act to protect the public services that we have available, to protect our tax base and to look at how we can support jobs in our own economy.”
TAOSIEACH NOT TO LIFT SANCTIONS ON RUSSIA
By Mark May
THERE can be no lifting of sanctions against Russia, the Taoiseach has claimed.
European leaders agreed it would be a strategic error to prematurely ease sanctions — a condition Moscow has made for a Black Sea ceasefire deal to take effect.
Speaking at their Paris summit, Micheal Martin said: “There was very clear unanimity that sanctions should not be lifted and cannot be lifted until there’s a comprehensive peace in Ukraine.
“There is a sense that Russia really hasn’t engaged in any ceasefire yet. The bombing has continued.”
The Taoiseach also said there was a need to give Ukraine further financial help.
He said: “We’ve already outlined that we’re making an initial €100million contribution, which was part of our commitments already made in the context of the European peace facility, which has been paralysed by Hungary.
“And we have a higher level of commitment through that European peace facility. So we’ll be looking to release more to Ukraine.”
l PREZ Trump is demanding Ukraine hands over half its oil, gas and metals in return for America’s support, leaked documents claim.
A draft of his “minerals deal” would see the US control Ukraine’s natural resources and key infrastructure until Kyiv repays a €97billion war debt — with four per cent interest.
Under the proposed terms, revealed by The Telegraph, the US could even block Ukraine from selling its own resources to Europe or China
A special EU Trade Council meeting has been called for April 7 to discuss Europe’s response to Trump’s new spate of tariffs which will be announced on April 2.
Consumer confidence in Ireland has plummeted to a nine month low amid fears about Donald Trump’s planned tariffs, a new report has revealed.
The latest Credit Union Consumer Sentiment Index reveals that Irish people are spending less due to concerns about a future economic shock caused by the Trump tariffs.
The US President plans to hit European cars with a 25 per cent tax and has threatened further tariffs on goods coming to the States from the EU.
This could hit Ireland’s economy hard as we export more than €70 billion in goods to the States each year – including a large amount of pharmaceuticals.
The consumer index reading for March is at 67.5 – a huge drop from February’s reading of 74.8.
This marks the biggest one month drop in consumer sentiment since September 2022 when energy prices were skyrocketing.
CEO of the Irish League of Credit Unions David Malone said: ‘’It is not surprising that the March sentiment survey paints a picture of a much more nervous Irish consumer as they face into the uncertain impact a threatened trade war could have on the economy and their own personal financial circumstances.
“In changing and challenging times, Irish consumers can continue to rely on the support of their local credit union to help them build a better future.”
