Social Democrats finance spokesman Cian O’Callaghan says the Government must publish an updated summer economic statement to account for the EU’s tariff agreement with the US.
In a statement on Sunday evening, Mr O’Callaghan welcomed a deal that “avoids a catastrophic trade war”, but said it is “beyond doubt . . . that a 15 per cent 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,” he added. “This was despite the dogs on the street being aware that a 10 per cent tariff rate was the best possible outcome.”
Mr O’Callaghan was one of a number of figures in Irish politics to publish statements regarding the trade deal on Sunday evening. Labour leader Ivana Bacik called on the Government to engage with Irish businesses, warning that continued uncertainty around pharmaceutical exports is evidence of “just how difficult it is to engage constructively with the Trump administration”.
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“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,” Ms Bacik said. “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.”
Taoiseach Micheál Martin welcomed the agreement, saying it “will help to protect many jobs in Ireland”. He added that it “brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world".
Mr Martin acknowledged that higher tariffs will make trade “more expensive and more challenging” but said that the agreement “creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US”.
The Taoiseach pledged to study the details of the agreement, including its implications for Irish businesses exporting to the US and for other sectors operating here. “Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many,” his statement concluded.
There were further calls to support Irish businesses from Sinn Féin spokesperson on foreign affairs and trade, Donnchadh Ó Laoghaire. “Ultimately, while a deal is preferable to tit-for-tat tariffs, the reality is, tariffs of this kind are bad for businesses, consumers and workers,” he said.
“We need to take the necessary steps to support our indigenous businesses, to increase exports to new markets, to grow talent across the island and to trade across the island and internationally."
Tánaiste and Minister for Foreign Affairs Simon Harris echoed the Taoiseach in welcoming the transatlantic trade agreement, noting that European Commission president Ursula von der Leyen described the 15 per cent tariff rate as “all-inclusive”.
“While Ireland regrets that the baseline tariff of 15 per cent is included in the agreement, it is important that we now have more certainty on the foundations of the EU-US trade relationship, which is essential for jobs, growth and investment,” Mr Harris said.
Finally, Danny McCoy, CEO of business lobby Ibec, said the trade agreement represents a “substantial burden for many industries”, particularly those relying heavily on the US market to operate. “Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit,” Mr McCoy said.
