Pharma crucial to Ireland, Simon Harris tells US bosses as Taoiseach says tariffs threat already hitting investment

Irish Independent

3 days ago

Ireland's position is that it should be addressed in the course of general discussions on tariffs between the EU and USA - and not set aside for later attention.
US president Donald Trump has threatened separate sanctions on pharma, which could be very great in light of his stated intention to put a 30pc tariff on European goods in genral.
The online meeting was an opportunity for the Tánaiste to hear first-hand the views of the pharmaceutical sector, his officials said.
The Zoom call comes at a critical juncture in EU-US trade talks. Mr Harris said it was "a chance to gain key insights."
He added: "Ireland is clear that the integrated supply chain in pharma products between the EU and the US supports - rather than threatens - our collective transatlantic economic security.
'Ireland's position is that the treatment of pharma should be within negotiations with the EU on an agreement in principle and we have made this point on both sides of the Atlantic over the recent weeks and months,' Mr Harris said, adding that there is no doubt that pharma "is a crucial sector for our economy'.
He repeated his argument that US pharmaceutical companies are here for many reasons rather than tax treatment alone.
"They have access to a highly talented, skilled labour market, they have access too to an EU market of over 450 million people,' he said.
"The value that the industry places on this access and their bases in Ireland was clear to me from the call."
He added: "Ultimately when it comes to pharma, this is about achieving the best outcomes for patients and citizens on both sides of the Atlantic.
'It is because of that that the main focus at this stage must be on avoiding an escalatory higher tariff outcome that will be deeply detrimental to both the EU and the US."
It is fair to say that the EU "has shown considerable constraint when it comes to counter tariffs" so far, Mr Harris said.
"This h underscores our desire to reach a negotiated settlement that results in mutually beneficial transatlantic trade and investment as soon as possible before August 1,' he said.
Tánaiste Simon Harris has told senior pharmaceutical bosses based in the United States that it is "a crucial sector for our economy".
Ireland's position is that it should be addressed in the course of general discussions on tariffs between the EU and USA - and not set aside for later attention.
US president Donald Trump has threatened separate sanctions on pharma, which could be very great in light of his stated intention to put a 30pc tariff on European goods in genral.
The online meeting was an opportunity for the Tánaiste to hear first-hand the views of the pharmaceutical sector, his officials said.
The Zoom call comes at a critical juncture in EU-US trade talks. Mr Harris said it was "a chance to gain key insights."
He added: "Ireland is clear that the integrated supply chain in pharma products between the EU and the US supports - rather than threatens - our collective transatlantic economic security.
'Ireland's position is that the treatment of pharma should be within negotiations with the EU on an agreement in principle and we have made this point on both sides of the Atlantic over the recent weeks and months,' Mr Harris said, adding that there is no doubt that pharma "is a crucial sector for our economy'.
He repeated his argument that US pharmaceutical companies are here for many reasons rather than tax treatment alone.
"They have access to a highly talented, skilled labour market, they have access too to an EU market of over 450 million people,' he said.
"The value that the industry places on this access and their bases in Ireland was clear to me from the call."
He added: "Ultimately when it comes to pharma, this is about achieving the best outcomes for patients and citizens on both sides of the Atlantic.
'It is because of that that the main focus at this stage must be on avoiding an escalatory higher tariff outcome that will be deeply detrimental to both the EU and the US."
It is fair to say that the EU "has shown considerable constraint when it comes to counter tariffs" so far, Mr Harris said.
"This underscores our desire to reach a negotiated settlement that results in mutually beneficial transatlantic trade and investment as soon as possible before August 1,' he said.
Meanwhile, the uncertainty around US tariffs is 'very worrying', Taoiseach Micheál Martin has said, adding that it was also 'problematic' for the budgetary process.
Over the weekend, US president Donald Trump threatened 30pc tariffs on EU imports from August 1.
On Tuesday, Mr Trump said he would also consider imposing tariffs on pharmaceutical goods and semiconductors as soon as August 1.
Speaking to reporters, he added that tariffs on pharma would start low but go 'very high' after a year.
'We're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff,' Mr Trump said.
In response to the latest announcement from Mr Trump, Mr Martin said the ongoing uncertainty was 'very worrying'.
'A lot of uncertainty has been created by this new policy from the United States. It's very important for economies everywhere, including the United States, to end the uncertainty and to bring clarity,' the Taoiseach said.
"We understand America's issues, but these can be resolved through the negotiation, but Europe also has prepared countermeasures to be deployed if necessary, but that would be very damaging to everybody if we get to that situation.'
Mr Martin said the uncertainty was already impacting future investment.
'I'm increasingly meeting people now who are commenting on the pause on investment and a lack of investment decisions because of a fundamental lack of uncertainty about the future landscape,' the Taoiseach said.
'That is very worrying. That in itself will trigger lower economic growth across the world. So it is very worrying that this is continuing, this uncertainty, this volatility, is continuing,' he added.
On the budget, Mr Martin said it was problematic for preparations, but the processes couldn't be paused in order to wait for clarity.
'We're keeping everything under review, but in the context of this year, we have fair ideas to where revenue will land and where expenditure will land,' he said.
'We can't abolish the budgetary process, we still have to go and prepare the budget, and we have to prepare estimates, and there has to be negotiations and so on.
'And there are very significant downside risks given what's happening and in terms of the tariff threat.
'Potentially, if we've got it resolved it could be an upside, we'll have to wait and see.'