Ryan O'Meara (Tipperary North, Fianna Fail) | Oireachtas source

It is impossible to see any justification for the imposition of tariffs by the US on EU exports. It is deeply regrettable the US has decided to impose 20% tariffs on imports from throughout the European Union. This worry is only compounded by Donald Trump's recent announcement that he will target pharmaceuticals with major tariffs. Every opportunity for negotiation must be utilised. Ireland will be a strong advocate for an outcome which enhances the existing strong transatlantic trading relationship. Ireland, along with other European Union member states, is engaging on an ongoing basis with the European Commission on its wider discussions with the US on this issue.

Tariffs are economically counterproductive and disrupt the deeply integrated transatlantic supply chains and trading relationships we have come to enjoy. Tariffs are the antithesis of what has allowed our economy to expand, develop and become incredibly successful by any international measure. They drive inflation and hurt consumers on both sides of the Atlantic. Increased protectionism is in no one's best interest.

The simple fact of the matter is that Donald Trump's actions in recent weeks and over recent days are arbitrary. They are illogical and deeply damaging to the people who elected him. It is the ordinary person who will pay for this additional tax. It is the ordinary worker and the ordinary consumer who will pay these tariffs that Donald Trump is imposing. They will feel it most in their pockets. It is the Republican Party in the US that will have to answer for this policy position and for these tariffs when the mid-term elections eventually roll around.

Where tariffs are imposed, Ireland is supportive of the EU's position. We know this. We have no choice but to take necessary proportionate action to defend the interests of our businesses, our workers and our citizens. However, I believe cool heads are needed now more than ever. I note what is coming from the Commission on the €20 billion retaliation but negotiations have to be the way forward. We do not need to escalate this issue any further. We are seeing escalations between the US and China. We do not need to see the same escalations coming across the Atlantic.

I am particularly worried about the dairy industry. It is the backbone of the rural economy. It is key in north Tipperary, particularly in Nenagh. We are seeing reports that the cost of a pound of butter in the US could go to €10. This is something we have to avoid where possible. I appreciate the diversification that is there in the dairy industry but it is still a threat. Nonetheless, we saw threats to the dairy industry when Brexit rolled around. We saw how we were able to avoid them and, in particular, diversify into edam cheese and out of cheddar cheese. There is a lot of work to be done on this. I do not think further retaliation is the way to go. Negotiations are an absolute must where possible.

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