The Irish Independent's View: Donald Trump's tariff threats serve no one, but they come with a cost

Irish Independent

27-05-2025

It resulted in Mr Trump putting the 50pc tariffs, which he had planned to slap on EU imports from June 1, on hold for a month. The extension of the deadline has given fresh momentum to negotiations.
It's beginning to feel as if the pace of our evolutionary psychology has been picked up dramatically in the few months Mr Trump has been in office. World markets are learning to absorb what in other times might have been potentially mortal blows to the nervous system of global finance.
Mr Trump makes a move which, theoretically at least, could shake the pillars of the world economy; for a time there is turmoil, but within 48 hours Mr Trump changes his mind. All those people running around with their hair on fire are left feeling a little foolish.
Mr Trump seems to enjoy the rush of hearing the sirens and witnessing the consternation he can unleash. But there are consequences to crying wolf.
Businesses need stability and security in managing production. The US was the EU trading bloc's biggest export partner last year, accounting for some 20.6pc of exports. Nowhere is more vulnerable to the vagaries of Mr Trump's prognostications than Ireland.
We don't need to react or indeed overreact to every iteration
Medicinal and pharmaceutical products were the EU's most exported sector to the US, and this country was the bloc's second biggest exporter, with goods worth €72bn. A 50pc tariff threat would hit €281bn worth of US-EU trade.
Not surprisingly, the pause was welcomed by relieved EU leaders, but toying with consumer confidence and investment sentiment generally comes at a cost. Speaking in Brussels, junior minister Neale Richmond said negotiations were about 'damage limitation'. 'The decisions of the US administration [are] beyond our control, certainly the rhetoric has been very worrying and will continue to be,' he said.
'We don't need to react or indeed overreact to every iteration, or indeed social media post, from the US administration,' the Fine Gael TD added.
Clearly it is in everyone's interest to get a deal done as rapidly as possible and restore some stability to trade relationships. Mr Trump is evidently intent on bouncing the bloc into making concessions.
But leaders are in the dark as to what exactly he wants. He seems fixated on tariffs, yet when told by the EU they could be set at zero, they were told 'non-tariff trade barriers' were the issue.
He said he doesn't want 'to make sneakers and T-shirts', but rather to make 'big things', like 'chips'.
But chips are famously small – unless, as cynics may doubtlessly suggest, he is talking about the one he is carrying on his own shoulder, the weight of which has left him at such odds with former allies.