Taoiseach warns of job losses as US tariffs hit Irish exports

Businesses are already reporting cancelled orders and job risks as US tariffs come into effect, says Micheál Martin

Speaking in the Dáil on Wednesday, Micheál Martin told TDs that the impact is already being felt in Ireland. Picture: Brian Lawless/PA Wire

Businesses are already seeing orders cancelled and jobs are at risk due to US tariffs, the Taoiseach has told the Dáil.

Tariffs on goods from the EU came into effect today following an announcement by US president Donald Trump last week, which sparked days of uncertainty and market turmoil.

Speaking in the Dáil on Wednesday, Micheál Martin told TDs that the impact is already being felt in Ireland.

"We are already hearing from some who are seeing their orders from the US slowing or even drying up entirely, putting valuable and skilled jobs at risk," he said.

"And there may be more to come. We have yet to see the approach the US will take on pharmaceuticals, semiconductors, and other sectors excluded from the so-called reciprocal tariffs.

"I hope the US will reflect carefully before taking any further steps – industries like pharma involve deeply complex and interconnected supply chains, as we saw clearly during the pandemic."

Mr Martin said that the pharma sector, which has been targeted by Mr Trump overnight, is increasingly seeking certainty.

"I have spoken to many leaders in the pharmaceutical sector in recent days to discuss how best we can navigate these very serious challenges.

"I know how concerned they are – it is not a sector in which production can be turned on and off overnight.

"As we have seen in Ireland, it involves exceptional expertise, long-term research and innovation; very significant investment in high-tech plants that can produce to exceptionally high standards; a skilled and dedicated workforce; and, most importantly, patients, people who cannot afford to see the price they pay soar or to have supply of vital medicines interrupted."

Mr Martin said that Ireland agrees with the EU response of putting tariffs on around €22bn worth of trade, but said that the hope is that the US will pull back from imposing tariffs.

"I hope that, having reflected, the US will step back from disrupting this most sensitive sector. I am sure that we can find a negotiated solution in which everyone wins.

"We see no justification for the imposition of tariffs on EU exports. Tariffs are counter-productive and deeply disruptive. They drive inflation, hurting consumers on all sides.

"There will be no winners in this, least of all the US taxpayers who will bear the burden of higher costs."

Speaking after Mr Martin, Finance Minister Paschal Donohoe said that the tariffs would test the resilience of the Irish economy.

"Recent analysis jointly published by my Department and the ESRI gives a first glimpse into the potential impacts of tariffs under a range of scenarios. Depending on the scenario, as well as future countermeasures, Modified Domestic Demand – which is the best measure of economic growth – would be between 1 to 2 per cent below a non-tariff baseline level over the medium term.

"The slowdown in growth would be accompanied by lower-than-assumed employment growth, which is expected to be around 2 to 3 per cent lower compared to a no-tariff baseline. In other words, employment levels could be around 55,000 to 85,000 lower."

Mr Donohoe said that Ireland's response will focus on becoming more competitive and investing in infrastructure in a bid to create and attract more jobs.