Introduction of tariffs not good for Ireland, IDA chief told
Briefings for the CEO of the IDA said he needed to be prepared for questions on President Donald Trump’s plans for tariffs which were described as “counterproductive” and “in no ones’ interests.”
In Q&As and other documents from late last year, Michael Lohan was advised to emphasise that Ireland needed to focus on what “it could control” in terms of talent and infrastructure.
One briefing said the country needed to stay “agile” and be ready for a “ramping up of geopolitical tensions” as well as the introduction of tariffs.
“The introduction of tariffs can lead to opportunity as well as threat, eg turning our attention to other markets – Europe and Asia,” it added.
Another guidance note warned countries would quickly find themselves in trade wars due to “tit-for-tat reactions” from tariffs.
A note for the CEO said: “Over the last decade we have seen a move to more protectionist economic policies across the globe, including in the United States.”
It said this would have clear implications for Ireland as “an open trading economy” which was dependent on fair and free trade.
It added that the introduction of tariffs “would not be good for us, or indeed any other open economy.”
The briefing note concluded: “It remains to be seen how things will transpire as the administration settles into the White House.”
A separate briefing prepared for the IDA by consultancy firm EY on what to expect in Washington DC opened with Trump’s statement that “the most beautiful word in the dictionary is tariff.”
It explained how Congress had not raised tariffs in almost 100 years until Trump’s first presidential term.
The IDA were also briefed on how the International Emergency Economic Powers Act could be used to give Trump “broad authority to regulate financial transactions.”
“In 2019, Trump threatened to use it to impose tariffs on Mexico for failing to stop illegal immigration,” the presentation said.
Asked about the documents, a spokesman for the IDA said: “The trading relationship between the United States and the European Union is particularly significant, one of the largest in the world, and so it’s important that Ireland maintains that relationship.
“As an agency focused on international investment and trade, IDA Ireland is focused on our client relationships while remaining informed on changes in international policies,” he added.
Article Source – Introduction of tariffs not good for Ireland, IDA chief told – RTE
