US President Donald Trump has announced a 20% tariff on all imports from the EU, a move that is expected to significantly impact Irish exports and trigger a ripple effect across the global economy.
Holding up a chart of tariffs, Mr. Trump defended the measures as “kind reciprocal” and criticized European nations, claiming, “they rip us off.” In a nearly hour-long speech, he cited major US companies with Irish operations, including Apple, Johnson & Johnson, Eli Lilly, Meta, and Merck, asserting that pharmaceutical companies will return to the US or face hefty taxes.
Brandishing a red ‘Make America Great Again’ baseball cap, Mr. Trump declared the tariffs mark the “day American industry was reborn, the day America’s destiny was reclaimed, and the day we began to make America wealthy again.”
Economic and Political Reactions
Ibec CEO Danny McCoy expressed “deep disappointment” over the announcement, predicting a 2-3% short-term impact on Irish exports.
The new tariffs include:
- 20% duty on all EU goods entering the US, excluding pharmaceuticals for now.
- Country-specific tariffs: 34% on China, 46% on Vietnam, 10% on Britain, and 31% on Switzerland, effective April 9.
- 25% tariff on imported vehicles, which took effect at midnight.
EU’s Divided Response
Irish Taoiseach Micheál Martin revealed that EU leaders remain divided on how to counter the tariffs. While Ireland and some member states favor negotiation, others advocate for swift retaliatory measures.
Mr. Martin “deeply regrets” the US decision, arguing it lacks justification. “More than €4.2bn worth of goods and services are traded daily between the EU and US. Tariffs drive inflation, hurt both economies, and put jobs at risk.”
As the EU formulates a response, Tánaiste Simon Harris will attend a trade ministers’ meeting in Luxembourg on Monday. He emphasized that tariffs hurt consumers, raise business costs, and create uncertainty. The Irish government, he assured, has been “actively preparing for this possibility.”
Trump’s Justification
Before signing the executive order, Mr. Trump described the tariff move as “Liberation Day”, accusing “foreign scavengers” of damaging the US economy.
He blamed previous administrations for failing to protect American industry, declaring that “factories and jobs will come roaring back.”
Business and Economic Concerns
Chambers Ireland called for a focus on competitiveness and strategic trade engagement, urging de-escalation.
CEO Ian Talbot stated, “To navigate these challenges effectively, we should enhance trade relationships rather than escalate tensions.”
Meanwhile, Social Justice Ireland warned of severe fiscal risks, highlighting that €20bn–€30bn in tax revenue could be at stake due to tariffs.
Michelle Murphy, a policy analyst, cautioned that this impact could exceed the 2007 financial crisis, with dire economic consequences for Ireland.
As tensions mount, all eyes are on the EU’s next move in response to the US tariffs.
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