Chambers: No one-off measures to protect people from US-EU trade war

Public Expenditure Minister Jack Chambers said that the Government's plan was to be "sustainable" and protect the country in the medium term

Jack Chambers said that this year's Budget would not see the kind of cost-of-living packages seen in recent years.

There will be no package of one-off measures to fight the impacts of a US-EU trade war, the public expenditure minister has warned.

Speaking as he entered a meeting of the Labour Employer Economic Forum (LEEF) at Government Buildings on Friday, Jack Chambers said that this year's Budget would not see the kind of cost-of-living packages seen in recent years.

Ireland falls under the sweeping 20% tariff imposed on most EU exports to the US which was announced by US president Donald Trump on Wednesday and will come into effect in the coming days.

Mr Chambers said that the Government's plan was to be "sustainable" and protect the country in the medium term.

"What we're trying to do when you read into our fiscal plan is to make sure we can make decisions that are sustainable, that can be continued into the long term. 

"And that's what we do in the context of Budget 2026, in terms of social protection and other areas of intervention that will have to be targeted and focused in particular areas of priority, but we're not going to repeat the one-off type of packages we saw in recent years."

Mr Chambers said that Ireland wants to see the issue moved to "a space of negotiation" and warned that additional retaliatory measures could make the situation worse.

Speaking as he entered the forum, Taoiseach Micheál Martin said that the EU "did not want any tariffs" and would work to find a "sensible landing zone" but needed to ensure the response did not "invite more damage". 

Mr Martin said there is a "difficulty" between the US and EU in that the Trump administration has a "antipathy" towards the EU.

US President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Washington DC (Mark Schiefelbein/AP photo)

"There is an issue there, without doubt, within the US administration. There is an antipathy that's not disguised towards the European Union, misplaced, in my view, because the European Union as a bloc, the trading relationship between it and the US is the biggest in the world. 

"It has helped create prosperity. Many of the big US pharma and technology companies have done well out of the European markets. That seems to be forgotten by the US administration."

He added: "A number of countries, including ourselves, have made the point that we need to do this in a way that doesn't invite more damage in an area where we have a surplus.

"The European Union's position is very straightforward. We don't believe in tariffs. We didn't invite these tariffs. If there are issues that the US has in respect of political sectors or more generally, Europe is ready to engage. 

"I mean, the US will criticise European Union regulation, for example, and the technology sector as one issue of concern. It will criticise barriers, for example, US chickens getting into European markets, or US beef. So you have to say, ok, let's engage in these questions."

Mr Martin said that it is too early to say whether the impact of the trade war will see programmes for government commitments delayed.

He said the era of free trade was "coming to an end" and that "protectionism is back".

This, he said, means that Ireland needs to "pivot" towards a more European outlook and that the EU needs to become more competitive. This was not, however, a case of abandoning Ireland's multinational sector, with Mr Martin saying that it's "not either or". For Ireland, this will mean building infrastructure more quickly.

"The biggest challenge we have is getting infrastructure built more quickly. We have too many hold-ups, and that is something that we've got to move with greater agility."

Urging both the EU and US to resolve its dispute over tariffs, Mr Martin also said it was important that the European bloc adopts a “strategic” approach to the issue of retaliatory tariffs on products imported from the US.

He said this was to avoid further tariff hikes by the US administration on certain sectors where Ireland has a strong presence in the US market, such as spirits.

“We’ve engaged in significant advocacy in respect of making sure that the response is strategic,” Mr Martin said outside Government Buildings in the Irish capital.