Govt ‘scenario planning’ for effects of US tariffs on EU
The Government is scenario planning for effects of tariffs being imposed on goods from Ireland by the Trump administration, according to the Minister for Public Expenditure Jack Chambers.
He said the planning included looking at the consequences on “businesses, consumers and the broader economy”.
Minister Chambers said tariffs “would impose serious costs on Irish citizens and indeed US citizens if they were imposed.”
He was commenting following the publication of tax receipts showing significant contributions from multinationals based in Ireland.
He said tariffs would impose a “serious risk to the Irish economy”.
Earlier today, Minister for Enterprise Peter Burke said negotiation will be key if the United States imposes tariffs on the European Union.
Speaking at the launch of Enterprise Ireland’s new five year strategy, the minister pointed to moves by Canada to impose retaliatory tariffs on the US, which prompted US Commerce Secretary Howard Lutnick to hint at a possible compromise and scaling back of the measures.
He said nobody wins with tariffs and Ireland will be keen to point out the two-way nature of the Irish-US trade relationship.
“It’s very uncertain. There is an economic study underway and we are told that President Trump will make an announcement in early April and then we have to assess the situation,” Mr Burke said.
“We’re told they will have reciprocal tariffs and when they use the word reciprocal we hear that the administration is looking at counting VAT and business costs potentially in the round as quantifying them as a tariff.
“So I think negotiations can really enlighten the administration on the merits of some of those issues and work to try and ensure we are making Europe more competitive and growing that biggest global most integrated trading relationship in the world which is the EU-US relationship,” he added.
Enterprise Ireland’s new strategy aims to boost employment in companies it supports by 40,500 by 2029.
The job target at client companies is 275,000, up from last year’s employment figure of 234,454.
The strategy sets out a plan to increase exports to €50 billon by 2029 – at the end of 2023 over €34 billion in exports were recorded.
The five-year plan ‘Delivering for Ireland, Leading Globally’ aims to support 1,000 new start ups between and 2029 and to see the creation of 1,700 new Irish-owned exporters.
Enterprise Ireland is the Government organisation responsible for the development and growth of Irish enterprises in world markets, and it works with over 4,000 Irish-owned businesses.
Its ambition over the next five years is to support Irish exporting companies, with the long-term ambition that these firms will become the primary driver of the Irish economy.
Amid threats of tariffs and trade wars, the strategy acknowledges that global economic challenges lie ahead, however it also highlights the resilience and agility of Irish businesses that have proven their ability to adapt, diversify and succeed.
“With companies supported by Enterprise Ireland now employing 234,454 people and over €34 billion in exports, this gives Enterprise Ireland a strong platform to launch our strategy, with ambitious targets for the Irish enterprise base which aims to support more Irish companies to achieve greater scale through international growth,” said Kevin Sherry, Interim CEO, Enterprise Ireland.
Minister Burke said he is confident that the initiatives and actions outlined in this strategy will position Ireland ahead of emerging economic trends.
“Irish exporters are a critical component of the Irish economy, and the Government is committed to supporting this sector to scale to further heights in the years ahead,” Mr Burke said.
Article Source – Govt ‘scenario planning’ for effects of US tariffs on EU – RTE
