Martin Daly (Roscommon-Galway, Fianna Fail) | Oireachtas source

The imposition of 20% tariffs on EU exports by the United States is not only unjustified and regrettable, but also erroneous in its rationale and deeply flawed in its calculations. It marks a significant retrogressive step in rules-based international trade developed in the aftermath of the Second World War. It is remarkable that one officeholder, the President of the United States, has been able to appropriate such enormous power over international trade with an apparent absence of the normal congressional checks and balances. It is ironic because his power grab reeks of weakness. His previously stated principled stand on tariffs as a tool to repatriate American companies has been deconstructed by his willingness to consider negotiation by supplication. It creates a fertile field for corruption.

Tariffs of this nature are economically counterproductive. They disrupt integrated supply chains, drive inflation and hurt consumers and businesses on both sides of the Atlantic. Increased protectionism is counterintuitive. It reduces consumer choice and stifles international investment and innovation. It is an experiment that failed miserably in 1930 with the Smoot-Hawley tariffs, widely credited with deepening the Great Depression and the subsequent collapse in world trade.

We must remain clear in our position. Every opportunity for negotiation must be pursued, even under grievous insult. However, if tariffs remain or are extended, a proportionate and co-ordinated response from the European Union is essential to defend our economic interests, protect jobs and support our exporters, under the guiding principle of festina lente.

I heard a former Fianna Fáil press secretary, Mandy Johnston, recall asking Brian Lenihan Snr. how to react in a political crisis. The wise political brain advised doing nothing for an interval to allow for a natural resolution. There is merit in that. The Americans might have to take care of this themselves if the market falls further, inflation rises and employment falters. As we know, trade is not a national competence and Ireland must pursue its interests through the European Commission, with constructive dialogue with other member states and understanding their specific exposure to these tariffs.

We also need to monitor closely the specific implications for the all-Ireland economy and North-South trade. This is a time for measured strategic action and not panic. It is also a moment to invest in long-term resilience in energy, housing, transport and innovation to future-proof our economy and pursue competitiveness. We are in a changing global landscape and must respond with clarity, unity and ambition, ensuring Ireland remains a strong advocate for open, fair and sustainable international trade.

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