Simon Harris is set to brief the Cabinet today on the effects of US tariffs and the European Union's counteractions. This follows recent international visits, including Taoiseach Micheál Martin's meeting with US President Donald Trump during the St Patrick’s Day events.
During their discussion, President Trump expressed concerns about the significant trade imbalance between the US and Ireland, suggesting that Ireland has a strong hold over the US pharmaceutical sector. He also criticized the EU for its treatment of the US, hinting at the possibility of more tariffs.
As of March 12, the US imposed a 25% tariff on all steel and aluminum imports globally. In response, the EU announced retaliatory measures, set to begin next month. These include reinstating previously suspended tariffs on April 1 and introducing new ones by mid-April.
In reaction to the EU's actions, President Trump threatened a 200% tariff on alcoholic beverages and is expected to announce additional measures on April 2. Simon Harris will inform the Cabinet about the findings of the cross-Government group examining the impact of these developments on Ireland.
A Government Trade Forum meeting is scheduled for March 21 to discuss these issues with local stakeholders. There is growing concern in Ireland about the US administration's protectionist stance, which could threaten the Irish economy's reliance on US multinational investments, particularly in the pharmaceutical sector.
Recent data from the Central Statistics Office shows that nearly half of Ireland's exports in January were to the US, with medical and pharmaceutical products rising by 68% from the previous year, making up 61% of total exports for the month.
Finance Minister Paschal Donohoe noted that while these figures represent just one month, they highlight the broader trade structure between Ireland and the US. He pointed out that while there is a surplus in goods, there is a deficit in services, leading to an overall trade deficit over recent years. He emphasized the need for collaboration with the US to address these issues.