Trump's 30pc tariffs could have ‘significant effect' on job creation in Ireland, says Paschal Donohoe

Irish Independent

4 days ago

It comes as US president Donald Trump on Saturday threatened to impose a 30pc tariff on imports from the European Union, starting on August 1.
However, Mr Donohoe added he is confident that Ireland 'will get its way through it' as the country's economic finances are in 'good condition'.
Speaking on RTÉ Radio One's Morning Ireland, he said the economic forecast from a few weeks back, considering there were 10pc tariffs in place between the US and the EU, would mean a 'lower level of growth within our economy and up to 75,000 fewer jobs being kept or created within our country.'
'Regrettably, the scenario that we now face could involve an even more significant effect on growth, a further effect on the job creation, a number of jobs within Ireland, but that is why we continue to negotiate so hard through the EU to try to avoid that happening,' he said.
'And thankfully, we are approaching these moments of great challenge with our economic and public finances in good condition, and a record number of people that work in Ireland.
'We are facing challenges, but I'm confident that with the decisions we've made, the hard work of the people of Ireland, and further choices we can make, we will rise to this moment and get our way through it,' he added.
The Government is currently working on the economic projections for Ireland if the 30pc tariffs on EU exports to the US were to be imposed, he said.
"It's also important to be honest that the impact on job creation and levels of employment within our economy would be worse and would affect where we believe we are likely to be.
"This is a big challenge. We need to have a moment of recognition of that, but we've faced challenges before, and we will get through this one too,' he said.
Meanwhile, the minister said he is seeing large employers in Ireland and investors in the Irish economy 'pausing decisions they're making".
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'That's not the same thing as saying the decisions won't be made or they can't go in our favour in the time ahead.
"But understandably, with the level of economic uncertainty that is there, employers are taking care regarding decisions they make."
It was announced last month that the Budget 2026 will not repeat the cost of living package with the one-off payments that were included in the previous budgets.
Minister Donohoe said he accepts that the removal of one-off measures will 'have an effect on [the most vulnerable] within our society', adding the country has permanent measures in place to help them.
'[There are] really big challenges that we could face in terms of jobs, growth, our public finances, and we need to make decisions now that can help, but that won't create further challenges or risks for us in the future.
"We have rolled out measures to help carers, to help with the cost of going to school, the cost of going to college, the cost of childcare. They were permanent measures that were brought in in recent budgets.'
When asked whether he accepts that there will be people who are going to be worse off after the upcoming Budget than they were last year, he said he doesn't accept that at the moment.
"What we will seek to do is look at what permanent measures we can bring in that would help those who were the worst off on a more permanent basis.
'The Government is really aware that there will be many who will be affected by the removal of measures that were large in nature when inflation was high.
'But the reason why those measures are going to be changed, and we're not going to be in a position to repeat them, is that inflation will not be growing at the pace that it was in the past.
'What we will seek to do is bring in measures that will be more permanent in nature, that will mitigate the effects, insofar as possible, of the removal of those measures.
"The key theme of this budget is going to be how we can create an economy that will keep those people in work and keep a record levels of employment within our economy.
'And in order to do that, regretably, because of the environment that we're in and the pressures that we're facing, we have to make choices,' he added.