Tariffs mean Trump is shrinking the pie while demanding a larger slice

While plants will not leave Ireland overnight, our corporation tax receipts could drop significantly, writes Brian Lucey 

The Johnson & Johnson manufacturing plant in Ringaskiddy, Co Cork: Ireland's public finances are heavily reliant on corporation tax receipts from a remarkably small number of multinationals, many of US origin. Picture: David Creedon

There’s a reason economics is often called "political economy". The phrase reminds us that economic decisions, especially on the grand scale of international trade and finance, are never just about dry numbers. They are deeply intertwined with power, politics, and the perceived interests of the state. Political economy is about the golden rule — them as have the gold make the rules. 

Discussions around new US tariffs give us a stark example: this looks less like a sophisticated economic strategy and more like a return to old-fashioned mercantilism, prioritising state power over complex realities.