Jobs could be lost in US-EU trade war, warns Paschal Donohoe

Finance Minister Paschal Donohoe said Ireland was approaching any potential trade war from a position of strength due to the country’s finances being in surplus.

There is a “real risk” of job losses in Ireland if the EU and US end up in a trade war, Finance Minister Paschal Donohoe has said.

Mr Donohoe warned the costs of goods would rise if trade barriers were put in place by the United States.

“From an economic point of view, the United States and the European Union every single day exchange billions of euro. We trade with each other in goods and services,” Mr Donohoe said.

“It’s the biggest economic relationship of its kind in the world and any reduction in that trade, anything that could damage it would result in higher prices, could result in the loss of jobs, could result in tax revenue being lost that we all need to fund public services across the world.

“That is a real risk, that I believe, we should all work together to avoid.”

US president Donald Trump has repeatedly threatened to introduce sweeping tariffs on countries, including the EU.

Mr Trump has already introduced levies on steel and aluminum imported to the US.

The EU has promised tough action against the US over the move, with European Commission president Ursula von der Leyen saying it will “not go unanswered”.

Mr Donohoe said Ireland was approaching any potential trade war from a position of strength due to the country’s finances being in surplus.

He referred to comments made by the chief economist of the OECD, who said Ireland’s economy was performing strongly.

“But we have to also acknowledge the risks that are there,” Mr Donohoe said.

Meanwhile, he also said he “profoundly” disagreed with Mr Trump’s analysis on Ukraine and events in Europe.

Asked if the Taoiseach should challenge Mr Trump when he meets him next month, Mr Donohoe said Micheál Martin would be acknowledging the importance of Europe on security.

“We will be emphasising that we have very clear views on who the aggressor is, the harm that is being done to the people of Ukraine.

“But all of that will be done in a spirit of friendship and making the case as well, even in these difficult moments, the value of cooperation and dialogue on everything from trade to security.”

He said any discussion between the two would be “balanced”.