Ireland scrambles to shield economy from threat of Trump tariffs

Yahoo

05-02-2025

Ireland is scrambling to protect its economy from Donald Trump's trade war as more than a quarter of its goods exports are at risk of looming US tariffs.
Simon Harris, Ireland's deputy leader, is attempting to drum up cabinet support for a plan to bolster the country's defences from trade shocks.
This includes setting up two new advisory bodies tasked with navigating the threat posed to Ireland's economy by potential American tariffs on the European Union (EU), according to the Irish Independent.
This includes a strategic economic advisory panel (SEAP), which Mr Harris is looking to fast-track amid escalating fears over Mr Trump's expected trade war with Europe.
The US president on Sunday said that the EU was 'really out of line' and that tariffs on the bloc's imports to America will 'definitely happen'.
Analysis shows that Ireland is more exposed to Mr Trump's tariffs than any country in the EU, with its US exports accounting for 10.1pc of its GDP. This is more than triple the 2.9pc average across the EU as a whole, according to ING.
Members of the new panel will be sourced from a range of businesses operating in the US, who will help to advise the Irish government on the risks and opportunities posed by Ireland's transatlantic trade ties.
As well as introducing the SEAP, Mr Harris will ask the cabinet to sign off on the immediate launch of a consulting group on global trade policy.
This body will consist of representatives from relevant government departments and business groups, who will meet every eight weeks to engage with businesses reliant on global trade.
Mr Harris on Monday warned: 'Ireland is at the centre of the European Union and any imposition of tariffs on the EU would create significant challenges.
'Europe must and will work collectively and with the United States to avoid such a situation emerging, and if necessary to mitigate any measures taken.'
The US is the biggest buyer of Ireland's goods exports, purchasing products worth €54bn (£45bn) in 2023. This was 28pc of all of Ireland's total goods exports.
Official US figures also show that Ireland has the fourth-largest trade surplus (meaning it exports far more than it imports) with the US after China, Mexico and Vietnam.
Two thirds of Ireland's goods exports to the US are pharmaceuticals and chemicals, two industries Mr Trump wants to target as part of his push to bring manufacturing jobs back to the US.
As well as dealing with the threat of tariffs, Irish officials are also concerned over Mr Trump's plans to slash its corporation tax bill from 21pc to 15pc, which will put it on par with Ireland's rate.
This would serve as a blow to Ireland by potentially tempting American tech multinationals away from Dublin and back to the US.
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