Mary Lou McDonald (Dublin Central, Sinn Fein) | Oireachtas source

As has been said, nobody wins in a trade war but we know who loses the most. Workers and families carry the can in the form of increased prices, threats to jobs and livelihoods and hits to their incomes. Trade wars are not good for the prosperity of ordinary people. That is the reality but this is the prospect we now face. It is unprecedented to use blanket tariffs to force broader trade and foreign policy objectives. US blanket tariffs are an unjustified act of economic aggression and they are going to damage the US and the global economy. Ireland's economy and the prosperity of our people are uniquely exposed to US tariffs and this has been brought home by President Trump's comments over the past 24 hours, in which he has again threatened additional tariffs on the pharmaceutical sector. The sector received an initial reprieve but the landing zone on pharma tariffs is still not known. In recent days, along with members of the Sinn Féin team North and South, I have engaged constructively with representatives from key sectors in the Irish economy, representatives of Ireland's pharma sector and the American Chamber of Commerce here in Ireland. Pharmaceuticals provide massive employment in Ireland and form a significant portion of our exports to the United States. Therefore, the exposure and the risk is real and must strongly inform how the Irish Government proceeds in talks with the European Union and the United States. It is clear to me that we need a tailored strategy for this sector to reduce the impact if President Trump pushes ahead with his threat.

Whatever the reflexive instinct might be, counter-tariffs are not in Ireland's interest. The ESRI has been clear that Trump's tariffs are damaging and that automatic counter-tariffs from the EU would make things worse for Ireland. EU counter-tariffs would have the potential to cost Ireland more in terms of a hit to our public finances, job losses and higher prices for Irish consumers. Any response must be carefully considered and calibrated and must take Ireland's economic interests in their totality into account. The response from the European Union must be planned, must be strategic and must aim to get the United States to withdraw from this disastrous approach. A tit-for-tat battle is a race to the bottom and that is a race nobody can win. What we need are cool and calm heads and maturity. We know that negotiations, dialogue and the working of relationships will be absolutely key to resolving this crisis and to moving forward. The Government must ensure the EU does not take any action that could further damage our economy, our jobs and the livelihoods of working people in this country. The priority must be to defend Irish national interests. That means safeguarding jobs, helping Irish business to grow in global markets and ensuring the all-Ireland economy continues to grow at pace.

We need a plan for Ireland - for all of it - to de-risk our economy and to mitigate the impact of these tariffs. This means having supports in place at both State and EU level. It means contingency planning and ensuring our strategies are tailored to the specific challenges that Ireland will now face. Of course, the Government needs to do much better at what is within its control by supporting domestic business, investing in infrastructure and sorting out housing and childcare provision. Getting these things right has never ever been more important. I am conscious that in the past governments have used crises as alibis not to tackle these issues and not to invest in these matters. This cannot be repeated. Successive governments have not put the basics in place to attract FDI without complex tax incentives. They have failed to invest in the areas key to building Ireland's long-term competitiveness and attractiveness - we have been saying this for years - and they have allowed our competitiveness to slip. Big and small businesses have been telling us about the issues that affect them. The scenario we now face shows that this must change. By making ambitious, smart investment in these areas, we stand to reap a double benefit at a time of great volatility. We can raise people's living standards and we can build the competitive advantage of Ireland being a great place in which to invest, do business and secure a job, and a great place in which to live and build a life.

Protecting, growing and advancing the success of the all-island economy is crucial to building Ireland's competitive advantage and our prosperity. This has to be a high-level priority for both administrations on the island, North and South. It is a serious issue that we now have two different tariff rates on this small island of ours and potentially two very different responses to those rates and the dynamic now unfolding around us. We need to ensure across the island that business are supported, primarily with information initially. A Government trade forum could play a useful role in that. We also have InterTradeIreland which operates between both administrations North and South to ensure in the first instance that our business sectors, which will be concerned about developments, have all the information necessary and whatever supports might be needed in the time ahead. I am asking those in government here to work hand in glove and in lockstep with their counterparts in the Executive. The first step in this regard would be to convene the North-South Ministerial Council without delay. I am asking that this be done. I am also asking the Government to hold an all-party meeting as soon as possible and that this practice be a consistent feature of how we collectively manage this situation. If we are to work together and deal with the crisis that tariff imposition could have on the Irish economy, we need an effective, transparent, collaborative approach, sharing with all parties in the Dáil all of the information and the strategies being considered.

It is clear what must happen and what must be the priorities for the Government in the time ahead. The Government must champion Irish interests in Europe and ensure any response does not risk greater damage, job losses and price hikes for Ireland. We must ensure the EU pursues a pragmatic policy of de-escalation without compromising on important laws and regulation designed to protect the all-island economy, the environment, human health and important sectors such as agriculture. There has to be a real emphasis to ensure the EU does not make retaliatory tariff decisions that make a target for the US of key Irish enterprise sectors. There must a real drive now to build our competitive advantage, to invest with intent in those areas that increase our attractiveness for investment, to protect Ireland from external shocks and to strengthen both our economy and our society. The chief responsibility of the Government is to stand up for Ireland's interests and to protect Irish jobs, Irish industry and the prosperity of our people.

The Government cannot take its eye off the ball on that score; there is far too much at stake. If we focus on those areas that we can control, and if we show ambition and vision in defending the prosperity of workers and the growth of business, we stand the best chance of weathering this storm and building a future in which Ireland's economy and the well-being of our people can be enhanced.

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