Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

My Department, like finance Ministries elsewhere, is assessing the potential impact of tariffs on our economy. The assessment of our economic outlook, which will incorporate the latest developments in the global economy, will be set out in the spring forecast, which will be published in April.

From an economic perspective, the US is our largest bilateral trading and investment partner. In 2023, the latest year for which data are available, Ireland recorded a goods-trade surplus of €50 billion with the US. On the other hand, it ran a services trade deficit of €134 billion with the US across that year. As a result, Ireland recorded an overall trade deficit of €84 billion with the US.

The Government has taken careful note of President Trump's decisions in respect of tariffs in recent days and the agreement to postpone tariffs on Mexico and Canada by 30 days. We regret the imposition of tariffs. Our view is that they create economic disruption and drive up inflation, damaging those on all sides.

Moreover, it is clear that the global economic landscape is changing quickly and the new normal we are about to move into will be very different from what we have had in recent decades. Our economy has benefited enormously from the global economy getting closer. As a major beneficiary from these positive dynamics, the Irish economy is exposed to any potential reversal in global trade. From a policy perspective, the best way to respond to these trends is to focus on those policy decisions that we can control and influence. That is why our competitiveness is so important and why investing in our future remains essential.

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