Government rules out cost-of-living measures to fend off effects of potential US tariffs

It comes as the EU launched a 'public consultation' on a list of US imports which could become subject to EU countermeasures if negotiations do not result in the removal of US tariffs

Peter Burke said it is important to avoid taking steps such as the EU using the Anti-Coercion Instrument which would target US digital services saying it would be 'a tit-for-tat and a huge escalation in tensions'. File picture: Conor Ó Mearáin / Collins Photo Agency

The Government does not intend to use a once-off cost-of-living package to mitigate the fall-out of tariffs if the EU cannot reach a deal with the US.

Enterprise minister Peter Burke has ruled out a one-off package in this year's budget saying that to continue multi-billion euro cost-of-living measures each year will make inflation worse.

Mr Burke said it is untrue to say that there are no measures in place to help people who are struggling, adding that they will look through the Summer Economic Statement and "what capacity will be to help people who are most vulnerable".

He was speaking as tensions remain high between the US and the EU over tariffs with the European Commission having launched a "public consultation" on a list of US imports which could become subject to EU countermeasures if negotiations do not result in the removal of US tariffs.

The Fine Gael TD said that he does not believe the EU has been aggressive on the matter but rather has simply taken steps to protect its market share.

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"What we have been doing has been very measured, very reasonable. We have to show our intent to defend our market share," Mr Burke told RTÉ Radio 1's Today with Claire Byrne.

"But we also want to negotiate a solution that is the pathway that is going to improve trade and essentially have more business being done between both jurisdictions."

It is important to avoid taking steps such as the EU using the Anti-Coercion Instrument which would target US digital services saying it would be "a tit-for-tat and a huge escalation in tensions".

Mr Burke is set to lead a trade mission to the US in the Midwest next week and will be meeting with a number of politicians in Washington on Wednesday.

The trip will be another opportunity to demonstrate how serious Ireland is about exporting into the US and highlighting the enormous contribution to the US economy, he said.