Pádraig Mac Lochlainn (Donegal, Sinn Fein) | Oireachtas source

Sinn Féin has warned for some time that the policies of successive Governments have left Ireland uniquely vulnerable to a change in the economic climate and to tariffs. This is due to their failure to invest in infrastructure, their excessive reliance on tax incentives, and their failure to build up our indigenous industry. These moves by Donald Trump and his Administration to introduce tariffs have caused a great deal of concern among the thousands of people working in US multinational companies, particularly in the pharmaceutical industry. Each day we see more concerning news. There are threats today of further tariffs on pharmaceuticals and there is the imposition of enormous 104% tariffs on China. The trade wars are heating up and there will not be any winners, certainly not among workers and taxpayers.

It is important to understand that tariffs not directly levied on Ireland or the EU can still affect us through implications for supply chains. Many exporters will only see the full implications in the coming time but existing tariffs on other countries can bite here. The Government must outline to people what it intends to do to safeguard their jobs and livelihoods, and to offer them reassurance. It is clear that the only way to win a trade war is not to be in one. Tariffs on pharmaceuticals would result in significantly higher costs for American consumers. It is also the case that the industry here exports significant amounts to many other markets, including Europe and right across the world. We need to ensure this is widely understood.

Sinn Féin has tabled an amendment to the motion as we are very concerned that the EU will follow Trump's approach and implement tariffs that are economically damaging. We are clear that the blame currently lies with Trump and that all options should remain on the table. We welcome the opportunity to debate this issue, though we do not accept, and we are concerned this motion does accept, the Trump justification for tariffs and that the only response to them should be acquiescence or to appease. However, we are watching this unfold in real time and the scale of the economic impact is not yet known. In that context, we should refrain, for the time being, from adding fuel to the fire. We have to put Irish interests front and centre as the EU prepares to respond, and it is for this reason that we have chosen to table an amendment to the motion. It is crucial that we protect the all-Ireland economy and we need to see the Government convene the North-South Ministerial Council as soon as possible.

Going forward, we hope cooler heads will prevail and we encourage dialogue. There should not be panic but we must be clear-sighted about the risks we face. We urge the Government to engage intensively with the EU to advocate on behalf of key industries of interest to Ireland such as pharma, and also agrifood, drinks, aircraft leasing, tech and financial services. It is welcome that it appears whiskey and dairy products may not be included in the EU list, something we have raised since February. These are key industries for Ireland which would be uniquely hit by knee-jerk reactions, and this would not be helpful. The Government must be to the fore in ensuring that retaliatory measures take account of the industries that Ireland relies on. The Government must also outline what preparations it will put in place for mitigation and support measures for businesses affected. As I said, while all options should be on the table, it is a time for cool heads.

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