Ireland’s Minister for Finance, Paschal Donohoe, has warned that the United States is likely to impose tariffs on the European Union (EU) in the coming weeks. Such a move could potentially jeopardize up to 80,000 jobs in Ireland in the medium term.
Speaking on RTÉ’s This Week with Justin McCarthy, Donohoe outlined the potential impact of these proposed tariffs on Ireland’s economy.
When asked about the possibility of an economic recession in Ireland as a result of the proposed 25% tariffs on EU goods imported to the US, Donohoe said the outcome would depend on several factors.
These include whether the tariffs are temporary and how the global economy responds.
In the worst-case scenario, Donohoe warned that over the next four to five years, it is possible that between 50,000 and 80,000 jobs that would otherwise have been created or retained in Ireland may be lost.
Donohoe further estimated that Ireland’s GDP could face a reduction of between 2% and 4% in the medium term due to the economic fallout from the proposed tariffs.
The warning comes amid growing criticism from American politicians targeting Ireland’s tax policies. Recently, US Secretary of Commerce Howard Lutnick described Ireland as his “favourite tax scam” during an appearance on the All-In podcast.
Lutnick claimed that Ireland’s low corporate tax rates have attracted major tech and pharma companies, asserting that such practices “must end.“
In response, Donohoe defended the presence of multinational US companies in Ireland, emphasizing that their contribution benefits both Ireland’s corporate tax revenues and the wider global economy.
Adding to the economic tension, Donald Trump has threatened to impose 200% tariffs on alcohol imported from the EU. This move was suggested as a response to EU rebuttal tariffs against earlier US trade measures.
The potential tariffs have already caused concern in the Irish drinks industry, with the Irish Whiskey Association expressing serious alarm.
The group highlighted that the export value of Irish beverages to the US exceeds €800 million annually.
Following the news, shares in the company behind Jameson whiskey saw a notable drop on the stock exchange.
Despite ongoing discussions between the EU and US to prevent the introduction of these tariffs, Donohoe said it remains highly likely that significant tariffs will be imposed by early April, in line with previous warnings from the Trump administration.
