Taoiseach sees 'no justification' for Donald Trump's 20% tariff on EU exports

Irish exports entering the US will be slapped with a 20 per cent tariff under US President Donald Trump’s “Liberation Day” announcement.

There is now growing concern that a trade war could break out between the European Union and the United States. If the EU does introduce retaliatory tariffs on goods being imported from the US, it could lead to prices rising for Irish consumers.

As fears over Ireland’s pharmaceutical industry rise, Mr Trump said that the industry would be coming “roaring back” to the US.

However, the pharmaceutical industry in Ireland will be immune from tariffs for now, as a fact sheet published by the White House stated "some goods will not be subject to the Reciprocal Tariff," including pharma.

Taoiseach Micheál Martin said on Wednesday evening that he could see "no justification" for the tariffs, while Tánaiste Simon Harris said that it could “have a significant effect on Irish investment and the wider economy”.

President Trump announced a range of tariffs on countries, including 20% on countries in the European Union, including Ireland.

He said the US would “calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating”, but because the US Administration consists of “very kind people”, they “will charge them approximately half of what they are and have been charging us”

He added: “So the tariffs will not be a full reciprocal. I could have done that, yes, but it would have been tough for a lot of countries.”

He confirmed that, as both the Irish Government and the EU had been expecting, a 20% tariff would be implemented on goods being exported to the US.

Mr Trump said: “We're going to charge the European Union… They're very tough. Very, very tough traders. You think of the European Union, very friendly. They rip us off. It's so sad to see. It's so pathetic.”

President Trump said “Liberation Day” would be “one of the most important days in American history

He said: “April 2 2025 will forever be remembered as the day America’s industry was reborn, the day America’s destiny was reclaimed and the day that we begin to make America wealthy again

“For decades, our country has been looted, raped and plundered by nations near and far, both friend and foe alike.”

He insisted that he was imposing "reciprocal tariffs”, arguing that the “European Union charges [the US] more than 10 per cent tariffs and they have 20% VATs. Much, much higher.”

President Trump argued that “factories will come roaring back into our country” and that tariffs would “supercharge our domestic industrial base”.

He continued: “We will pry open foreign markets and break down foreign trade barriers.

“Ultimately, more production at home will mean stronger competition at lower prices for consumers. This will be, indeed, the golden age of America.”

While not directly referencing any country, Mr Trump said countries had “stole [sic] our intellectual property” and “created filthy tax havens”.

He added: “In many cases, the friend is worse than the foe in terms of trade, but such horrendous imbalances have devastated our industrial base and put our national security at risk.”

Mr Trump added that he did “not blame” the countries involved for this, but rather previous US administrations.

While not directly mentioning Ireland at all in his speech, he noted several companies with strong presence in this country have started increased investment in the US. This he said, included Apple, Meta, and Johnson and Johnson.

He also mentioned the pharmaceutical industry, which has a heavy presence in Ireland.

He said: “The pharmaceutical companies are going to come roaring back. They're coming roaring back.

“They're all coming back to our country, because if they don't, they got a big tax to pay.”

The Taoiseach and Tanaiste both expressed "regret" about the tariffs last night.

Mr Martin said: "I deeply regret the US decision to impose 20% tariffs on imports from across the European Union.

"We see no justification for this. More than €4.2 billion worth of goods and services are traded between the EU and the US daily.

"Disrupting this deeply integrated relationship benefits no one. Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.

"We will now reflect with our EU partners on how best to proceed. As I agreed with President von der Leyen in our recent phone call, EU unity is crucial, and our response should be considered and measured.

"Any action should be proportionate, aimed at defending the interests of our businesses, workers and citizens."

Mr Martin also said there needed to be "dialogue" and a "confrontation is in no one's interests".

The Tanaiste, meanwhile, said he "deeply regrets the announcement on tariffs made by President Trump" and that there are “no winners when it comes to tariffs”.

Mr Harris said: “I must be honest tonight that a 20 per cent blanket tariff on goods from all EU countries could have a significant effect on Irish investment and the wider economy and the impact of what has been announced is likely to be felt for some time.

“These tariffs are in addition to the tariffs on steel and aluminium (25%) and auto sector (25%) that the US announced last month.

“It represents a huge challenge to Irish exporters to the US across all sectors. Work is already underway to mitigate this and we are already taking concrete steps to boost our domestic competitiveness and investing in our infrastructure.

“Our relationship with the United States is long, deep and meaningful and I want to be clear that it will endure far beyond any difficulties we may encounter in the time ahead.”

Government ministers and officials were on tenterhooks on Wednesday and admitted everyone was playing a “waiting game” until Mr Trump’s announcement.

Mr Harris told Cabinet on Tuesday that one third of Irish exports go to the EU, while 17% of our imports come from the US.

If the pharmaceutical industry is hit, pharma exports could decrease by 50% over a five-year period.

Finance Minister Pachal Donohoe has predicted that between 50,000 and 80,000 jobs could either be lost or not created as a result of tariffs. Trade union SIPTU warned 200,000 jobs were at risk.

Speaking in the Dáil on Wednesday afternoon, the Taoiseach said that the impending tariffs were “without question the most serious issue to face the Irish economy in a long time”.

Mr Martin said: “It is clear that the scale of these tariffs will be very significant in European terms.

“Ireland does not believe in tariffs. The European Union does not believe in tariffs and does not want tariffs.

“The bottom line is this, however, that ultimately to get this into a sustainable landing zone for the future, negotiations are key.

“[Mary Lou McDonald] outlined that part of the approach in designing any counter-measures from the European Union will be the negotiating table.

“Can we get this to a negotiating table where we could get a reasonable settled pattern?

“It will not be the status quo and it will not be what it is now.

“The old order is changing and it is regrettable.”

Mr Martin said that there would be “very serious impositions on Europe” and there will be “some response”.

However, he added that there are “different balances across the EU” and countries will be hit in different areas.

Tánaiste Simon Harris is set to continue engaging with his EU counterparts over the coming hours and will travel to Luxembourg this weekend where it is expected that reciprocal tariffs will be discussed.

European Commission President Ursula von der Leyen has said that the EU will push back but that nothing will be done until mid-April to allow negotiations to take place.

At the Fianna Fáil parliamentary party meeting in Leinster House on Wednesday evening, the Taoiseach said, “Uncertainty is the one certainty” as he assured his party that “the whole system is working flat out to respond”.

He said his sense is that it’s an issue that will hang over us for some time and may have economic implications.

He repeated what he said in the Dáil about a change in the current status quo as he stated the government is also engaging with multinational companies.

Simon Harris told the Fine Gael parliamentary party meeting that the Government is “prepared to navigate the coming economic turbulence calmly”.

Danny McCoy, CEO of Ibec, said that the group was “deeply disappointed by the US Administration’s decision to impose 20% tariffs on exports from the European Union, particularly given the impact it will have on transatlantic trade and consumers”.

He added: “While this will present challenges for a number of sectors, we anticipate that the new tariffs will result in a net overall export impact of around 2–3% in the short-term.”

Ian Talbot, CEO of Chambers Ireland, said that it was “essential that Ireland and the EU respond with calm and resolve”.

Sinn Féin leader Mary Lou McDonald, meanwhile, said “My priority is to defend Irish national interests.”

She said: “That means safeguarding jobs, helping Irish businesses to grow in global markets and ensuring the all Ireland economy continues to grow at pace.

“The government needs to do better at what is within their control - supporting domestic businesses, investing in infrastructure and sorting out housing. Getting these things right has never been more important.”

On Virgin Media’s The Tonight Show, EU Affairs Minister Thomas Byrne said that Mr Trump was right about countries having to talk to each other about this.

He added: “We have to stand up as well, standing up for ourselves and make sure that this does not go unremarked or unanswered.”

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