The State will advocate for a “firm but proportionate” European response to US president Donald Trump’s tariffs when European Union trade ministers meet on Monday.
The Government is exploring ways to ramp up assistance to businesses seeking to diversify their export markets. This comes amid concern over the impact of the tariffs on those selling goods to the United States.
Minister for Trade Simon Harris will attend a summit of EU trade ministers in Luxembourg today.
He said he will make the State’s commitment to EU unity clear as well as “the need to take a firm, but proportionate response, while working towards a negotiated solution”.
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Mr Harris added that a trade war “is in no one’s interest” and that there is always time to strike a deal.
The EU – which handles trade matters for member states – is continuing to devise its response to the 20 per cent tariffs on goods from the bloc.
News agency Reuters has reported that the European Commission will propose a list of US products to hit with extra duties in response to Mr Trump’s previously announced tariff on steel and aluminium.
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This is set to include US meat, cereals, wine, wood and clothing, as well as chewing gum, dental floss, vacuum cleaners and toilet paper.
European Commission president Ursula von der Leyen spoke to British prime minister Keir Starmer on Sunday and is said to have “reaffirmed the EU’s commitment to engaging in negotiations with the US, while making clear that the EU stands ready to defend its interests through proportionate countermeasures if necessary”.
There is concern in the Republic about the impact on food and drink producers who export to the United States as well as for the pharmaceutical sector, which is exempt from tariffs for now but could face US levies.
On efforts to help businesses to diversify markets Minister for Enterprise Peter Burke said there are 190 overseas market advisers employed by Enterprise Ireland with 156 of these based outside the US.
He also said his department has an “expansive trade mission plan in place”. He said there are dedicated schemes that can help businesses that export to the US, including the Strategic Consultancy Grant and Market Discovery Fund. Mr Burke said he will be “engaging with businesses to make them aware of these supports and ensure they are accessed at scale”.
[ Future of 60,000 Irish jobs at stake after Trump tariff shockOpens in new window ]
The Government is to produce a trade diversification plan within six weeks.
“I am bringing forward a competitiveness plan and further supports for such businesses will be strongly considered as the impact of tariffs become clearer,” added Mr Burke.
On Sunday, Minister for Finance Paschal Donohoe indicated that efforts to help employers to find additional markets are favoured by the Government over a wage subsidy scheme for affected businesses. He told RTÉ radio he does not believe an economy-wide scheme of the kind introduced during the Covid-19 pandemic would be “appropriate”.
He added that assisting employers in finding additional markets is “crucial and that’s the work that we want to do”.
In Luxembourg, EU ministers will also be briefed by EU commissioner for trade Maros Šefčovič on his recent visit to China and there are expected to be talks on the EU-China trading relationship.
Mr Harris said, “we should not close ourselves off to trading with China. Quite the contrary”. He also noted that it must be made clear to China “the problems we face with its non-market policies and practices, as well as our resolve to act to defend fair competition and a level playing field”.
Separately, Mr Harris is to meet US commerce secretary Howard Lutnick in Washington later this week when he will outline the State’s specific concerns over the tariffs but also make the case for a negotiated solution between the European Union and United States.
