26-05-2025
'Wait and see': Taoiseach says Trump's extension on tariff threat could stifle economic growth
Mairead Maguire
reports from the Global Economic Summit in Killarney
THE TAOISEACH HAS said that the drawn-out tariff negotiations between the EU and US has created uncertainty that might make companies wary of investing before everything is settled.
He said the two have one of the 'most robust and most significant trading relationships' and any deal will make waves internationally, but for now it's 'wait and see'.
It comes as US President Donald Trump paused his threatened 50% tariffs on the European Union
until 9 July
, instead of the 1 June deadline he initially gave.
Trump also threatened to place a 25% tariff on tech giant Apple, which has its European headquarters in Cork, in order to move iPhone production to the US.
The president last week said that he was 'not looking for a deal' with the EU, repeating his oft-stated view that the bloc was created to 'take advantage' of the United States.
However, Taoiseach Micheál Martin: 'All of the indications, in terms of the interaction between Maroš Šefčovič and his [US] counterparts is that they wanted a deal here.'
Martin is content with the EU's 'fairly modest' response so far, which he says doesn't escalate tensions further.
The uncertainty, however, could see companies and consumers wary of spending.
'Uncertainty is not a good situation for economic growth or economic development, and certainly can act as a restraint on companies deciding to invest,' said Martin.
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'It also would be a concern that when sentiment changes, people's spending behavior changes. People become more conservative, and hence that can have an impact on the domestic economy.'
European Commissioner Michael McGrath said 'every effort' will be made to reach an agreement in what he called a 'critical' six weeks.
'Both sides must really stretch themselves in the negotiations, find a compromise that both can live with and then agree on terms of trade that can present a solid and stable basis for businesses.'
Tánaiste Simon Harris says there is 'no time to waste' and that he wants to see 'meaningful and substantive' talks between the two sides.
Trade with Canada
McGrath and Martin were speaking at the Global Economic Summit in Killarney, where tariffs and trade are the headline issues.
The Taoiseach said that a 'more informed' debate about trade is needed in the Dáil amid discussions about CETA, a free-trade agreement between the EU and Canada.
The Irish Supreme Court ruled that its ratification would be unconstitutional in the absence of a change to domestic legislation. Tánaiste Simon Harris will seek Cabinet approval tomorrow for the drafting of legislation which will allow for the agreement's ratification.
Martin says businesses have 'done very well' while CETA has been operating 'provisionally' in recent years.
'We export nearly 90% of everything we produce, and yet we're having these torturous discussions about whether trade is a good thing or a bad thing,' he said.
'We can't have it all our own way all the time, but trade puts bread and butter on people's tables and I think Ireland needs to realise that.'
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