Ireland highly likely to face significant period of economic turbulence – Harris

Ireland is highly likely to face a very significant period of turbulence in the face of threatened tariffs by Donald Trump, according to the Minister for Foreign Affairs and Trade.

Simon Harris said that Ireland will have to “engage” with its foreign direct investment based in the Republic.

However, he also told the Dail that regardless of who is in the White House, many US multinationals still want to do business in an EU market.

US tariffs of 25% on all imports of steel and aluminium products and derivatives came into effect worldwide on March 12.

Mr Trump later threatened a 200% tariff on imported alcoholic drinks from the EU.

Mr Harris made the remarks in response to queries from Labour leader Ivana Bacik, who said the Government must provide “clarity” about how its plans to deal with US tariffs.

Ms Bacik said: “What I want to raise with you today is how we in Ireland respond to US President Trump, and first on the impact of Trump’s proposed tariffs, because here we are hearing that US pharmaceutical companies based in Ireland are already scenario-planning for moving manufacturing to the US.

“Like all of us in this House, many people I represent are employed directly by US multinationals, and I’m hearing already from constituents who fear they may lose their jobs, who are worried about the impact upon their families, being about being able to pay their rent or their mortgage.

“Amid this uncertainty, as we await the detail of Trump’s plans, and indeed, the EU response, Tanaiste, you must give what clarity you can to those who are living in fear.”

She said that around 7% of workers in the Republic are directly employed by US businesses, while US companies pay nearly seven billion euros in wages.

“Of course, (they make an enormous contribution to corporation tax receipts,” Ms Bacik added.

“We couldn’t be more exposed in terms of jobs and in terms of our economy from the risk of tariffs.”

It was also agreed that Government would brief opposition parties next week on how tariffs will impact Ireland.

Speaking in the Dail, Mr Harris said: “We are highly likely to face a very significant period of turbulence.

“We have got to control what we can control in terms of what we can do here in Ireland.

“We have got to work as part of and as members of the European Union where, of course, trade policy is at.”

He added that many US companies have decades of experience carrying out their business in Ireland.

“We are also, though, approaching a position of relative strength because regardless of politics, there is also a reality that many companies are based in this country not for the weather, but because it is a good place to do business. It is a good place to access the European market.

“Regardless of who is in the White House or what policies are pursued, it is a statement of fact that many American multinationals still want to do business in a market with more than 400 million people.”