Taoiseach warns US tariffs could trigger global recession as Ireland pushes for EU response

Taoiseach Micheál Martin says Ireland will protect its interests at the EU level and calls for a measured response

Taoiseach Micheal Martin (left) and Michael McGrath (right), EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, during a press conference following their meeting at Government Buildings in Dublin, over the 20% tariff on imports from the EU announced by US President Donald Trump, which will significantly impact Ireland. Picture: Brian Lawless/PA Wire

The next 48 hours "will tell a lot" in relation to tariffs, but Ireland will not be shy in speaking up at the European level to protect its own interests, the Taoiseach has said.

Micheál Martin has warned that the raft of tariffs announced by US president Donald Trump could spark a global economic slowdown, with investors becoming cautious about making decisions amid such uncertainty.

"The imposition of tariffs on such a wide scale and at a high level across the world will have a dampening effect on investment, and that in itself could create recessionary trends across the world. 

"So I'm worried more about the global impact of this and the impact on investments, the pausing of investment, perhaps, and investors generally keeping the head below the parapet until this settles down. And that is a problem, sentiment matters, psychology matters."

Mr Martin said it is “too early” to be talking about rolling out supports for companies or sectors that may be particularly impacted, stating that there will be negotiations between the EU and the US in the coming days.

“There will be a period of engagement, so we have to see where this settles.” 

He said there is a need to “double down” on the single market and there is a “lot we can do in the interim to improve our competitiveness”.

Stressing that there are “other markets out there,” Mr Martin said a trade deal with India could potentially be closed by the end of the year.

EU Commissioner Michael McGrath, who this morning met the Taoiseach in Government Buildings, said the EU will "act in the interests of the European economy and all of its member states, including Ireland".

He added that all member states will have a "direct say" regarding any trade defence measures that the Commission may formally propose for adoption.

It comes as both Germany and France suggested that US tech and services should be targeted as part of a forceful retaliation.

Asked about this, Mr Martin said Ireland is not in favour of the imposition of a digital services tax, adding that there must be a "considered" and "measured" response from the EU.