Opposition leaders have called on the government to take a proactive response to the tariff era, as rates of 15% have been imposed on the EU.
The 15% announcement marks a stark difference from the initial 10% plan outlined by Trump in April, with little clarity in way of Ireland’s lucrative pharmaceutical sector.
Labour leader Ivana Bacik welcomed the clarity around the situation, but said uncertainty remains.
“After months of uncertainty, it is a relief to see a deal finally reached between the EU and the United States. Continued uncertainty around pharmaceutical exports, one of Ireland’s most important sectors, highlights just how difficult it is to engage constructively with the Trump administration,” she said.
“The ESRI warned that 45,000 jobs could have been at risk in a scenario where 10% tariffs persisted. We need to see certainty so that investment reignites — but for that to happen, businesses must have confidence that the goalposts won’t shift again.”
“There’s no question that this will have consequences. We’re calling on the government to be proactive. They must engage with the Irish businesses impacted to ensure jobs are protected and new market opportunities pursued.
“In addition, we in Labour are calling on the government to fast-track the development of a new, modernised short-time work scheme to ensure that skilled jobs are not lost in sectors under pressure. Other EU countries have long-standing schemes that help employers retain staff during economic shocks. We need a system in place in Ireland that can respond to future volatility or sectoral downturns quickly and effectively.”
On Monday, Taoiseach Micheál Martin said there were no plans for the government to carry out a Brexit-style response to small businesses, claiming the government cannot operate on a “handout approach” similar to the Brexit era.
Speaking on Monday, the Taoiseach said, “we have to take decisions that would create the opportunity or the landscape for companies to grow and to develop strongly.”
He said, “it has to be a strategic approach, not a handout approach.”
Social Democrats acting leader Cian O’Callaghan said the government must publish an updated summer economic statement in light of the announcement.
O’Callaghan, the Soc Dems’ finance spokesperson, said “I welcome that a deal has been done which avoids a catastrophic trade war. However, there is much that is still unclear about what has been agreed. What is beyond doubt, is that a 15% tariff rate will be very damaging for many Irish businesses.”
“It is less than a week since the government published its summer economic statement, using an assumption of no tariffs. This was despite the dogs on the street being aware that a 10% tariff rate was the best possible outcome.
“The government must now publish an updated summer economic statement which outlines the impact of a 15% tariff rate on the national finances and the budgetary calculus.”