Micheál Martin (Cork South-Central, Fianna Fail)

They are just bad news and they will damage the world economy if this continues. There is terrible uncertainty and volatility, and the result of all that is a pause on investment decisions, which is also a critical outcome so far of what has transpired over the last six months.

To be fair, I disagree further with the Deputy. The Irish position, until now, has been to avoid any escalatory response by Europe.

I have spoken to the President of the Commission. She is of the same view, as is the negotiator, Maroš Šefčovič, to whom the Tánaiste has spoken, as have I. The whole strategy of the European Commission and the vast majority of the European Council has been to avoid an overreactive response, notwithstanding there are fairly severe tariffs on the motor industry, as a result of which a lot of EU countries are bleeding right now. It is easy for the Deputy to pontificate that we should do this, that and the other. If he was a worker in the car industry in Germany or Czechia, he would be feeling it. The UK was feeling it, which is why it made what is called a framework agreement with the US.

The latest iteration of this process is the announcement of a potential 30% tariff - not 10% but 30% - by 1 August. If that materialises, the EU, at that stage, will have no option but to respond. There is no point in getting worried about an individual component here or sector there. If there are tariffs of 30%, that will be ruinous or very destructive of our economy and of America's economy as well. We hope that does not come to pass. Europe wants to prioritise negotiation.

There is no evidence, by the way, in terms of what the Deputy said that France and others have got their way. They have not actually in the sense that some would have liked a more robust response already but Europe has played it calm and firm, been involved in negotiations and had good reason to believe there was a deal, an outline framework agreement in principle, on the table up to a couple of days before the weekend. That all changed. There is a new reality to 1 August. Europe hopes we can get into a negotiation process to resolve the matter.

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