The Tánaiste has held further discussions with EU Trade Commissioner Maroš Šefčovič as part of an ongoing engagement in preparation for the expected announcement of US tariffs and the impact they will have on EU-US trade.
Simon Harris outlined the views of Ireland and detailed the engagement he has been having with his European counterparts in recent days.
Mr Šefčovič updated the Tánaiste on the work ongoing at an EU level in its preparation to respond to any announcement of US tariffs.
The Tánaiste and the Commissioner stressed the importance of European unity at this crucial time when it comes to global trade.
They discussed their shared view that they would rather talks than tariffs and that ultimately negotiations will need to take place to find a way forward.
They also both highlighted the importance of the EU Trade meeting taking place in Luxembourg next Monday, which the Tánaiste will attend on behalf of Ireland.
They both agreed to keep in close contact in the coming hours and days.
‘Very serious and disruptive environment’
Minister for Public Expenditure Jack Chambers said “we are in a very serious and disruptive environment now”.
He told Newstalk Breakfast that Ireland needs to be “very careful on how we calibrate all of our taxation expenditure,” and that “we need to have fiscal discipline over the coming years,” if the speculated 20% universal tariffs are applied by the US.
“That’s going to cause serious and significant damage to Ireland, to our economic prospects, particularly when you take the reliance we have on an open trading enterprise model.
“That’s why the Government is managing this in the context of the European Union, but also in our broader international engagements,” he said.
“This represents universal downside risks for the economy, serious risks to employment, to future economic growth and undermines the decades of prosperity that have been underpinned by international trade.
“And that’s why there has to be a measured and proportionate response from the EU that’s structured,” he added.
Minister Chambers said that despite it being labelled ‘Liberation Day’, it is going to cause damage to ordinary citizens in the US and right across the world.
Europe will respond ‘proportionately’
Europe will respond to the likely implementation of tariffs by Mr Trump in a proportionate manner but will not escalate tensions under any circumstances, French Industry Minister Marc Ferracci said.
“Europe has always been on the side of negotiation and calming things down, because trade wars only produce losers,” Mr Ferracci told RMC radio.
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Meanwhile, the head of the Italian national industry lobby has said the effect of US tariffs will be massive for Italian companies.
Confindustria President Emanuele Orsini has called for Europe to negotiate with Mr Trump to avoid further escalation.
“We will have to assess with great attention (the effects) of the tariffs that will be announced by Mr Trump. There is a risk for Italy, our Research Centre is quantifying the impact, which will be massive,” he said.
Mr Orsini added that businesses with higher exports – such as the pharmaceutical sector, the fashion and food industries and production machinery – would be those most affected.
In Australia, Prime Minister Anthony Albanese and Liberal Party leader Peter Dutton said they would stand up for the country’s national interests in the face of looming US tariffs that could hit Australian beef.
Australia recorded its first trade surplus with the United States in January as gold exports surged, after decades of trade deficits. The two countries have a free trade agreement that allows duty-free entry for US exports.
Mr Albanese has said his government will not retaliate against the Trump Administration with reciprocal tariffs.
Toughening his language in an election campaign, Mr Albanese said today he would “stand up for Australian interests”, and would not compromise on Australian regulations that the United States is likely to target.
Mr Dutton similarly told reporters: “My job is to stand up for Australians.”
“If I needed to have a fight with Donald Trump or any otherworld leader to advance our nation’s interests, I’d do it in a heartbeat,” Dutton said in a Sky News Australia interview.
Mr Albanese said he “won’t compromise” on three areas likely to be targeted, after they were listed in a report on foreign trade barriers released a day earlier by the United States Trade Representative.
“We won’t compromise on our Pharmaceutical Benefits Scheme, on our biosecurity or our Media Bargaining Code,” he said.
Retaliatory measures
Trading partners from the European Union to Canada and Mexico have vowed to respond with retaliatory tariffs and other counter measures, even as some have sought to negotiate with the White House.
Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum spoke about Canada’s plan to “fight unjustified trade actions” by the US.
“With challenging times ahead, Prime Minister Carney and President Sheinbaum emphasized the importance of safeguarding North American competitiveness while respecting the sovereignty of each nation,” Mr Carney’s office said in a statement.
US companies say a “Buy Canadian” movement is already making it harder for their products to reach Canada’s shelves.
