ESRI warns transatlantic trade war could cost Irish economy billions

The ESRI report comes as finance minister Paschal Donohue admitted tariffs imposed by the Trump administration are likely to spark a rise in inflation and hit jobs growth. Picture: Sasko Lazarov/RollingNews.ie

A full-scale transatlantic trade war could wreak havoc on the Irish economy, costing billions in euro and prompting some US multinationals to move operations out of the country, a report published by the Economic and Social Research Institute (ESRI) has warned.

The report published on Friday was co-authored and funded by the department of finance and comes as finance minister Paschal Donohue admitted tariffs imposed by the Trump administration are likely to spark a rise in inflation and hit jobs growth. On Thursday, the EU said it would delay retaliatory tariffs until mid-April to allow for talks aimed at finding a compromise.