US tariffs will have some ‘secondary effects’ on Irish economy – Taoiseach

Taoiseach Micheál Martin has said there would be some “secondary effects” on the Irish economy as a result of US president Donald Trump’s announcement of 25% tariffs on all steel and aluminium products entering the US.

Mr Trump announced the tariffs last night and warned of further reciprocal tariffs that would be announced early this week.

Speaking to reporters in Brussels this afternoon, Mr Martin said: “Obviously, there will be some secondary effects in terms of Irish

perhaps, but not primary.”

He said the European Commission had done a lot of scenario planning and would be engaging further with the US government.

“There may be further developments on that front, but that remains to be seen,” he said.

Mr Martin had just met President of the European Council António Costa and earlier met President of the European Parliament Roberta Metsola.

He told reporters: “We believe tariffs are not conducive to economic growth. Ireland believes in a freer trade environment.

“We’re a small, open economy, and I believe that free trade has led to the largest rise in prosperity globally in recent decades.”

While he acknowledged that protectionism was on the rise internationally, the Taoiseach said the Covid-19 pandemic was evidence of the interdependence of countries when it came to trade, pointing out that some 50 states were involved in the components that went into one vaccine.

Asked if he was concerned that President Trump would target Ireland as part of his threatened plan to return manufacturing to the US, or to attack what he deems as extra-territorial taxation of US corporations, the Taoiseach insisted there had to be a global approach to taxation, despite Mr Trump pulling the US out of the Organisation for Economic Co-operation and Development framework on corporation tax.

“Ultimately, the only way forward is through global agreement,” he said.

Mr Martin said that after every election, including in Europe, there is always change.

He said: “The most important thing for us is, how do we respond and adapt to a changing environment.

“Some of the fundamentals will stay, in terms of economics, in terms of trade and in terms of supply and demand.”

A spokesperson for Ms Metsola said she and the Taoiseach had discussed Ireland’s presidency of the EU next year and touched “on the dynamics both within the European Parliament as well as in the Oireachtas”.

The two also discussed EU competitiveness, a new policy on the return of irregular migrants to countries of origin, transatlantic relations, Ukraine and the latest developments in the Middle East.

US tariffs on European goods ‘unlawful’, warns European Commission

The European Commission earlier warned that any tariffs imposed by the US on European goods would be unlawful and economically counterproductive.

European officials are insisting that there has been no official notification by Washington on steel and aluminium or on any other new tariffs.

A commission spokesperson said they would not respond without details from the US or written clarification.

In a statement, the commission said there was no justification for the imposition of tariffs on its exports and that the EU would react to protect the interests of European businesses, workers and consumers from unjustified measures.

The statement said tariffs would be both unlawful and economically counterproductive, especially given the deeply integrated production chains established on both sides of the Atlantic.

The commission said tariffs were essentially taxes and by imposing tariffs the US would be taxing its own citizens, raising the costs for businesses and fuelling inflation.

Tariffs heightened economic uncertainty and disrupted the efficiency and integration of global markets, the commission said.

Tariffs ‘damage everybody’ including those who impose them – MEP

Tariffs “damage everybody” including those who impose them, the Minister for European Affairs has said about the threat on US tariffs being placed on European goods.

Thomas Byrne said discussions about the matter are “important”, but there is still a need “protect your own house as well and protect your own industries at a time when the US is doing that”.

Speaking on RTÉ’s Today with Claire Byrne, he said: “If you look at goods and services flowing across the Atlantic, like, we’ve a lot of goods going to America and tariffs would have a significantly damaging effect.

“But on the other way, there’s a lot of services coming into Ireland from the US as well.

“Presumably, President Trump will want to protect those industries as well in the US.”

The minister noted that Ireland is “a major invest investor in the US”, but added that the country’s “position in the European Union is critical to our economy”.

Trade, he said, is not “a one-way street”, adding US industries are “bi-located” which is a “complicating factor” in the imposition of tariffs.

“That’s something that will have to be taken into consideration,” he said.

Article Source – US tariffs will have some ‘secondary effects’ on Irish economy – Taoiseach – RTE

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