Micheál Martin (Cork South-Central, Fianna Fail)
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Táimid buartha faoin mhéid atá tar éis tarlú go dtí seo ó thaobh an gheilleagair de agus na taraifí go léir atá ar an bhfód faoi láthair. Is é bun agus barr chúrsaí geilleagair na tíre seo ná a bheith ag trádáil ar fud an domhain, go hoscailte agus go forleathan. Níl aon amhras ach go mbeidh drochthionchar ag na taraifí seo ar chúrsaí eacnamaíochta i gcoitinne agus in Éirinn.

I am sharing my time with the Minister, Deputy Donohoe. For an open economy like Ireland's, recent developments in trade have been especially concerning. We have enjoyed decades during which global trade has increased, new markets have opened and supply chains have become ever more diverse and complex. We are clearly now entering a different era. Ireland has benefited from and supported a world order in which trade has become more open and globalised. We now need to adjust to a different situation, which some are consciously stepping back from. The new policy approach in the United States is one in which the protection of national markets and the raising of protective barriers play a central part. Ireland has advocated and continues to do so for an ambitious world trade agenda. We believe trade not only brings economic benefits, but it helps lift people and countries out of poverty, and it contributes to a more stable and predictable world. The era of free trade over the past 30 or 40 years has led to the largest increase in living standards ever recorded in the world.

Retreating behind defensive barriers may appear attractive on the face of it, but it is not a win-lose proposition. Ultimately, everyone loses, and the poorest lose most of all. That is why the announcements on tariffs made by the US Administration on 2 April are so deeply concerning and regrettable. They have had an immediate and negative impact on global financial markets and there has been significant turmoil in the markets today. The medium- to long-term consequences for the world economy will be grave indeed if solutions are not found. A baseline tariff of 10% on all countries entered into force on 5 April, with further tariffs coming into effect today. This will mean a blanket 20% tariff on all exports from the European Union, including Ireland, to the US from today.

While major tariff announcements were trailed in advance, and the Government has been actively preparing, we hoped that this harmful and destructive step could have been avoided. These new tariffs are in addition to the decisions last month by the US to impose tariffs on steel, aluminium and derivative products, as well as on the automotive sector. Together, the US tariffs on steel and aluminium, on cars and the blanket 20% tariff on goods from the European Union affect around €380 billion worth of trade between the United States and the European Union. There is no way to sugar-coat it. A 20% blanket tariff on most goods could potentially have a very significant negative impact on investment and the wider Irish economy. It represents a huge challenge to Irish exporters to the US across all sectors. We are already hearing from some who are seeing their orders from the United States slowing or even drying up entirely, putting valuable and skilled jobs at risk. There may be more to come. We have yet to see the approach the United States will take on pharmaceuticals, semi-conductors and other sectors excluded from the so-called reciprocal tariffs.

I hope the United States will reflect carefully before taking any further steps. Industries like pharmaceuticals involve deeply complex and interconnected supply chains, as we saw clearly during the pandemic. I have spoken to many leaders in the pharmaceutical and medtech sector in recent days to discuss how best we can navigate these very serious challenges.

I know how concerned they are. It is not a sector in which production can be turned on and off overnight. As we have seen in Ireland, this sector involves exceptional expertise, long-term research and innovation, very significant investment in high-tech plants that can produce to exceptionally high standards, a skilled and dedicated workforce and, most important, patients, people who cannot afford to see the price they pay soar or to have the supply of vital medicines interrupted. I hope that, having reflected, the United States will step back from disrupting this most sensitive sector. I am sure we can find a negotiated solution in which we can get a reasonable settlement.

We see no justification for the imposition of tariffs on European Union exports. Tariffs are counterproductive and deeply disruptive. They drive inflation and hurt consumers on all sides. There will be no winners in this, least of all the United States' taxpayers who will bear the burden of higher costs. As stated starkly by the President of the European Commission, Ursula von der Leyen, the global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe, including the most vulnerable countries now subject to some of the highest US tariffs.

The European Union response to date has been the correct one. As I agreed with President von der Leyen in our recent phone call, the European Union will proceed in a calm, strategic and measured fashion. We will continue to seek negotiated solutions. We are disappointed that we have reached this point, but it is always essential to continue dialogue and negotiation. There is always time to strike a fair deal. This approach was endorsed by European Union trade ministers at their meeting last Monday. There was a strong sense of unity and agreement that the European Union should take the necessary steps to safeguard its interests. All shared the view that this dispute requires dialogue and negotiation with the United States. At the same time, the European Union will have to respond in a proportionate manner that protects businesses and citizens.

Today, based on a proposal from the Commission, European Union member states are considering a decision to proceed with counterbalancing measures for the US tariffs on steel and aluminium. It has been agreed that they will come into effect on a staggered basis, first on 15 April and then on 15 May. They will affect approximately €22 billion in trade between the European Union and the United States.

The Government has been in ongoing contact with the European Commission and has made Irish sensitivities clear. I discussed these issues directly with President von der Leyen, raising our concerns on the potential inclusion of bourbon and dairy on the proposed list of European Union countermeasures. I am pleased that the concerns of Ireland were fully taken into account. The European Union continues to reflect on and prepare countermeasures to the tariffs announced by the US on 2 April. However, as I said, and as has been made clear by the Commission, the European Union is also prioritising negotiation and dialogue with the United States. Should negotiations fail, it will be important to consider further countermeasures by the European Union that protect our businesses and citizens.

Ongoing contact with the United States and the Trump Administration is crucial if we are convince the United States to come to the negotiating table. When I met President Trump in the Oval Office last month, I raised our concerns about tariffs and their potential adverse effect and impact on the two-way and mutually beneficial economic relationship between Ireland and the United States. The Tánaiste had a useful phone call with United States Secretary of Commerce, Howard Lutnick, on 24 March and is in Washington today to meet him in person. The European Union Trade Commissioner, Maroš Šefčovič, is permanently engaged with his United States' counterparts.

There are also serious concerns, which I share, about how the United States' tariffs and European Union countermeasures could impact Northern Ireland and the all-island economy. The new tariffs announced by the United States do not affect the United Kingdom in the same manner, as it is subject to the baseline 10%. This will have an impact on Northern Ireland. The Government is conscious of this. We are working through these issues and we will continue to be in close contact with the Northern Ireland Executive.

There may be specific issues for the agrifood sector, not least due to the integrated supply chains in this industry, North and South, and the customs rules of origin, which define the origin of a product for tariff purposes. We learned a lot about this in the Brexit period so we understand that supply chains on this island are deeply connected and that any change to current integrated arrangements would require huge investment. The Minister, Deputy Heydon, and his team are looking at the potential impacts on the agricultural sector in more detail. The Windsor Framework offers some protections. Arrangements are in place that allow Northern Ireland traders to apply to the United Kingdom authorities to be reimbursed in respect of EU import duty paid or deferred on goods brought into Northern Ireland and that do not enter the Single Market.

The impact of the new tariffs is wider than any one sector and will potentially impact all goods being exported, North and South, in different ways. We are very aware of this and we will continue to highlight the particular situation of Northern Ireland and, more broadly, the all-island economy in all our discussions with interlocutors, including the United States and the European Commission.

While the challenge we and our European partners now face is not to be underestimated, we are taking this on from a position of strength. Our economic performance in recent years has been robust and we have near full employment. We have seen real, substantive jobs growth across all regions. This economic success has been based on an openness to trade and investment with all countries - an approach we must continue to advocate for, including by calling for an ambitious European Union trade agenda.

Ireland remains committed to the principles of free and open trade, which have underpinned our economic success. Free and open trade brings economic opportunities, creates well-paid jobs and fosters innovation. It builds economic resilience within a strong rules-based international trading system. Our membership of the European Union makes us part of a growing network of European Union free trade agreements, supporting more opportunity for exports and investment, helping support jobs and growth at home, maintaining strict European Union standards on food safety, animal and plant health, and supporting better environmental and human rights standards around the world. That is why we will bring forward legislation to ratify the Canada-European Union trade deal. I trust that on this occasion the Opposition will support that legislation because it is good for business, jobs and small to medium-sized companies in Ireland. I never understood the opposition to it, given that trade is the flesh and blood of our economy.

As a member of the European Union, we want reforms. We want to double down on the Single Market, which should be part of the European response, remove more barriers within the European Single Market and also develop a savings and investment union through negotiation with fellow member states.

Our trading relationships have resulted in public finances that are in a position of relative health. We have also provided for significant reserve funds to ensure we continue to invest in our country's future prosperity. We acknowledge that much of our budget surplus can be attributed to the strength of corporation tax revenues, a significant portion of which must be considered windfall in nature. This is something that must be carefully managed. In resisting the pressures to spend too much in recent years, we now have a strong fiscal position to start from. While we continue to work to address the risks we face and exert influence where we can, central to our response to tariffs must be a greater focus on increasing our competitiveness, controlling costs where we can, delivering critical infrastructure and investment and, in particular, driving energy transformation by enabling offshore wind farms to be developed.

The new programme for Government, which outlines our commitment to delivering for all people and regions across our shared island over the next five years, is very strong in this regard. In the coming months, the Government will bring forward an action plan on competitiveness and productivity, with a focus on issues such as the cost and regulatory burden on business, research, development and innovation, planning and regulation, and energy costs. This will be an important plan, setting out how we can continue on our path of economic development, maintain our attractiveness for investment and so forth.

I have engaged with some of the most impacted companies at the highest level, helping to inform our response. We are working closely with businesses and workers, through the Labour Employer Economic Forum and the Government's trade forum, considering how best we can collectively respond to the challenges we face. This means working constructively, as we have in other recent challenges, to minimise the impact on employers and workers in affected sectors and to ensure our future economic prosperity. Our track record in protecting the economy and jobs, whether on foot of Brexit, Covid or the war on Ukraine, is clear. However, the challenge we face now is different. What is needed is a strategic and thought-through approach. We will develop our analysis in the coming weeks to better understand the impacts we face, including distinguishing between temporary and structural changes. We are facing into a period of high uncertainty, which could put considerable pressure on the public finances. We must proceed carefully and manage the resources we have available. We already have in place a strong set of employment and business supports that are available to affected companies. State agencies are stepping up their engagements with industry. Supports are available, including grants for strategic assistance, market discovery and diversification, and digitalisation and innovation.

A global network, including Enterprise Ireland’s 42 overseas offices, is already working with companies to find and develop new markets. For workers, we have a short-time working scheme to help those placed temporarily on a shorter working week by their employers and a new jobseeker’s pay-related benefit to better protect the incomes of those who might lose their jobs.

Most of all though, we need to avoid being deflected from the core challenges which will sustain long-term prosperity. They are investment in infrastructure; investment in our people through education, training and skills; investment in innovation; and a more focused approach to regulation and addressing costs in our economy. We will not be complacent in managing the challenges we face. The Government is committed to protecting our economy and jobs, developing our enterprise base and enhancing our attractiveness for investment and, in doing so, ensuring our continued prosperity. We do this as proud members of the European Union and as an integral part of a market of 450 million people, one of the biggest markets in the world. Where we are working with our EU partners, we can negotiate from a position of strength.

Paschal Donohoe (Dublin Central, Fine Gael)
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With the agreement of the Leas-Cheann Comhairle and the House, I will share my remaining time with the Minister, Deputy Chambers.

I am pleased to have the opportunity to address Dáil Éireann today on the issue of where global trade stands. It is now obvious we are facing a trade development that is a major challenge for the global economy and one that casts a dark shadow over prospects for the economy. Tariffs, to put it simply, are taxes on consumption and investment and they are bad for economic growth and jobs. To frame last week’s announcement, it marks the intensification of a dynamic that has been under way for some time. Global economic activity is becoming increasingly fragmented along political lines. The Government’s view is that the priority must be to de-escalate the current situation and to avoid increased trade disputes.

That said, this is not something the Government, or even the European Union, can fully control. It is therefore important to take stock of where our economy is in order to evaluate how well we might absorb this policy-induced shock. It comes on top of a series of unprecedented shocks to the Irish and global economies. Our economy has proven resilient and this resilience looks set to be tested once again. However, its resilience is clear and continued. It is evident in our labour market, where the employment rate has never been higher and the unemployment rate has never been lower. In addition, the inflationary shock has passed and, unlike previous episodes, we are now seeing some signs of the moderation of inflation. Prices are still high, with the most recent data on inflation showing it at just 1.8% in March. Having said that, we are conscious that the price level remains higher than before the pandemic and we understand the effect this is having on businesses and living standards.

The strength of the Irish economy is also reflected in the public finances. Last week, the Minister, Deputy Chambers, and I published the first Exchequer returns of this year. The data show year-on-year growth under all the main tax headings and an underlying Exchequer balance of almost €1 billion. This reflects the Government's efforts to run budget surpluses where possible so that we can respond when needed in more difficult times. While we face into the current challenges from a position of strength, it goes almost without saying that we will not become complacent. We cannot do so. The world is now changing rapidly. It is likely that the fragmentation of trade along political lines will now interact with other structural challenges that are more long-term in nature, including ageing populations, high levels of public debt and other changes involving climate change and the roll-out of artificial intelligence. Against this backdrop, it is essential that we continue to be careful with how we manage budgetary policy to respond to this time of change.

On the recent tariff announcements, we are now seeing changes that are historic in nature. Additional tariffs of 50% on Chinese imports to America have been announced, taking the total tariff to more than 100%. To state the obvious, this now means the tax on the import is now higher than the price of the imported Chinese goods. Overnight, the President has also outlined his intention to introduce further tariffs. All this will affect the global economy in both direct and indirect ways. It will reduce trade between the US and other countries, limiting those countries' ability to increase living standards through mutually beneficial trade, and it will increase prices for people, particularly in the United States, lowering real incomes. Finally, the reduction in purchasing power across different countries will inhibit their ability to trade with other countries, indirectly impacting trade elsewhere. The risk is of lower levels of trade, lower living standards and lower growth. That is why all these moves are deeply regrettable. As the Taoiseach said a moment ago, they trigger lose-lose outcomes.

This is why the European Union and the Government are clear in their message. Through the EU, we stand ready to negotiate with the US Administration on tariffs because we firmly believe that dialogue and de-escalation provide the best path forward. We all hope that this approach can bear fruit and that a more normal trading relationship between the EU and the US can still be restored. However, there is no guarantee of that and, notwithstanding the effect of such negotiations, it is likely that we will not return to the pre-existing rules of trade. International relationships and trading patterns have been fundamentally changed and European countries, including Ireland, must and will adapt.

The recent Letta and Draghi reports comprehensively outlined the work we in Europe can do to strengthen our economic foundations and improve our growth. We must now do this work at a time of great uncertainty. This represents opportunities for Europe, including Ireland. These challenges can be overcome if we maintain the commitment to working together and multilateralism that has helped us to achieve so much since we joined the European Community five decades ago. The Irish and European economies have thrived on co-operation. Mutual respect, trade and a rules-based economic order remain the path to improved living standards. The world economy and the European economy can absorb this shock, but only if we adapt and adjust. We can prevail with our fundamental values intact and our economies in a strong position.

Regarding the effects on the Irish economy, the Government published recent estimates to allow us to better understand the potential impact of tariffs under a range of different scenarios. Depending on the scenario, as well as future countermeasures, modified domestic demand - in other words, measuring the economy excluding the effects of larger companies - is the best measure of economic growth. It would be between 1% to 2% below a non-tariff baseline of growth over the coming years. This would be accompanied by lower than assumed employment growth, which would be around 2% to 3% lower than we had hoped. In other words, employment levels could be around 55,000 to 85,000 jobs lower. This is an important piece of work. It gives us our best guide to where we could be with what we know now.

The Government must be able to understand the likely channels and the possible economic impact to respond as best we can. This is an important piece, although not the only piece, of analysis of this very demanding economic situation.

Let me turn to what the Government is doing and will do. We have been a significant beneficiary of free and open trade and foreign direct investment. With this in mind, the announcements, as I outlined, will affect our outlook. However, notwithstanding the current uncertainty in the trading environment, companies have very deep roots in Ireland. They have benefited from the very highly skilled workforce and the pro-enterprise environment we offer, which still make us a highly competitive prospect for investment. However, we must do better. We must focus on how we can best protect ourselves against the current uncertainty by exploring how we could potentially diversify our trading relationship across the world. We must continue to support the largest employers in the State and small- and medium-sized domestic enterprises up and down the country. We must focus on the factors within our control and influence. This means investing in human capital, and infrastructure for the future, which the Minister, Deputy Chambers, will refer to. It also refers to the funds we have in place to help us build up safety in our public finances and respond to the challenges we are now confronting.

We are now in a deeply uncertain period for the international economy and the implications for Ireland in the coming years are not yet fully clear. The policy decision announced last week marks the end of the many mutually beneficial decades of free trade enjoyed by the US and the EU. The global economy benefited enormously from this trade, and hundreds of millions of people in the least developed economies were lifted out of absolute poverty owing to the opportunities created by more trade and deeper integration into the global economy. We are one country that has seen its living standards grow significantly from how we participated in this trading system. At an EU level, two-way trade now amounts to just over €4 billion per day, highlighting the importance of the EU-US economic relationship. We will continue to make the case for free trade and for the benefits it brings for all sides, a case the Tánaiste is undoubtedly making today.

The Government is determined to protect our economy, to support and protect jobs and to keep our public finances safe. We will evaluate the steps necessary to do this, but we need to avoid doing anything that could create further difficulties for us down the line. In other words, the actions the Government needs to take are ones that also need to be sustainable during this major period of change. This is why we will continue to engage extensively with all who are affected, building on what has made our economy resilient to recent shocks, while investing to further boost our competitiveness for the next wave of international and domestic investment. Despite the storm clouds that are clearly gathering, I wish to emphasise to the House that we are approaching the current challenge from a position of strength and we will use this to our advantage in the weeks, months and years that await. We have weathered many storms now in recent years. We have done this by working with our partners in the European Union, by managing our public finances in a sensible way, by creating a pro-enterprise economy and by keeping our economy and our society open trade. In a very changing world, I am convinced these elements will continue.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Before I call the Minister, Deputy Chambers, I am sure Members will not mind if I welcome pupils from two schools in Windgap and Skeaghvasteen in my constituency of Carlow-Kilkenny. Deputy Cleere has reminded me they are here. Deputy O'Donoghue has also told me that the Cappagh Women's Cave group from County Limerick are also here listening to the debate. They are all very welcome and I hope they have a nice day. I call the Minister, Deputy Chambers.

Jack Chambers (Dublin West, Fianna Fail)
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I thank the Leas-Cheann Comhairle. It is great to see the continued co-operation in Carlow-Kilkenny. I welcome everyone from Limerick as well.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Local politics first.

Jack Chambers (Dublin West, Fianna Fail)
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As mentioned by the Minister for Finance and the Taoiseach, the imposition of tariffs poses a significant risk to our country, society, workers, businesses and economy as a whole. All the Deputies here in the House understand the genuine concern, anxiety and distress all this places on families and people across the communities we represent. This will impact on growth and jobs and on broader inflation and cost pressures across the Irish, EU global economy. Prior to and in the days since President Trump's announcement, much of the work of the Government has been to try to mitigate and best protect the progress we have made in recent years. We have been working closely with EU colleagues to try to put plans in place to mitigate and safeguard jobs, our economy and our society. As we saw with Covid, Brexit and other severe shocks we have faced and overcome, we need to work to mitigate the risks and take the appropriate actions to best prepare the Irish economy for the medium to long term. However, we approach this challenge from a position of strength. Thanks to responsible and careful management of the economy and our public finances, we are in full employment, with a highly-skilled workforce and continued investment happening right across our economy. Only in the last week, we saw continued investment and job creation. Inflation has been moderated much better than in many of the other European economies, standing at less than 2%, and we are still seeing strong economic growth and modified domestic demand is predicted to grow strongly this year. This is also reflected in the Exchequer returns from quarter 1. We have recorded and continue to record a budgetary surplus and have invested more than €10 billion in our long-term investment funds. These will amount to more than €16 billion by the end of the year.

Europe equally approaches this challenge from a position of strength. We have a united block of more than 450 million people representing a strong and prosperous single market that has built and improved prosperity and living standards over so many years. There has already been extensive engagement and dialogue at EU level by the Taoiseach and the Tánaiste this week in the context of the participation of the EU trade ministers. We believe the best approach is a careful, considered and graduated response, where we demonstrate Europe's strength and seek to develop a negotiated outcome. In Ireland and the EU, we value the opportunities, the prosperity and the economic growth that free trade creates. This is why we want to move this situation from the space of significant tit-for-tat and retaliatory measures to one where the EU, the US and, indeed, the broader global economy can have deep and proper meaningful engagement. Negotiation is key.

Regardless of what may happen in the coming weeks, we know the rules of the game have changed. Indeed, we know from the Department of Finance and others that the trends of deglobalisation have been embedding themselves across the world economy for many years now. We must, therefore, adopt an approach that will best prepare Ireland and our enterprise economic model for long-term change. Enhancing our domestic and international competitiveness must be our priority to support indigenous and foreign direct investment and to remain attractive for anyone who wants to invest from overseas. A key component of this endeavour is investing in our national infrastructure. I received Government approval to undertake a fast-tracked review of the national development plan last week, availing of the additional resources available to the State, including the funds from the European Court of Justice ruling, the share sales proceeds and the infrastructure, climate and nature fund to ensure we can develop more ambitious plans for national infrastructure for the future. This will enable the economic growth that is central. Priority will be given to housing, energy, water, transport and health digitalisation to drive competitiveness and economic growth. A review is to be completed by July this year. Alongside this, a new infrastructure division is being established in my Department, with work ongoing to strengthen the expertise, overcome many of the delays and implement a short, focused programme of reform. This will singularly focus on expediting the delivery of key structure, which is taking too long in many cases. Europe is facing a competitiveness challenge that requires fresh ideas to encourage innovation, boost investment and lift productivity, as the Minister, Deputy Donohoe mentioned. We have got lots of recommendations from the Letta and Draghi reports that have now been discussed at length at European level. We need to see a move to actually embrace those reports and deepen the single market. We must deepen the integration it can represent and try to reduce red tape and balance regulation across the European system to ensure we support enterprise to try to develop and entrench a better capital markets union. These will be the key areas of focus for boosting Europe's global competitiveness.

3 o’clock

It is also important that we examine State investment in a much more critical and strategic way. That is why I am also focused on responding, within the overall envelope of €105 billion being spent by the State this year, to the need to demonstrate a continued focus on value when it comes to State investment. I am reviewing the public financial procedures to ensure we strengthen the value-for-money considerations on all current and capital expenditure. In the coming period, the Minister, Deputy Donohoe, and I will be publishing a medium-term fiscal plan that will set out what is possible for the long term in line with the work of the Department of Finance, which is updating the various projections we have. That will set out how we can strengthen public services in line with demographics, the wider pressures that we have and the programme for Government priorities. It will set out our approach, which will prioritise protecting jobs, protecting the progress our country has made in recent years and supporting enterprise to drive forward further economic growth in the period ahead. We enter this from a position of strength with strong public finances, strong partners in Europe and a commitment to strengthen our economic model so we can address not only the imposition of tariffs but also the future challenges we know we will face in the years to come.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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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.

Pearse Doherty (Donegal, Sinn Fein)
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President Trump's tariffs are an unjustified act of aggression that will damage the US and the global economy. A full trade war has the risk of unleashing a global recession and that is the scale of threat we possibly face. The stakes are high and now more than ever is a time for cool heads. Irish interests and the interests of ordinary workers and families need to be at the front and centre of every decision. It needs to be the prism through which we make all these decisions.

We cannot get away from the fact tariffs are taxes. They are either paid by the companies or by consumers and what Trump is selling to the American people is a fantasy when he says otherwise. Irish people are genuinely concerned about what this all means for them, as well as the tariff talks, the retaliatory measures from China, countermeasures from America, further countermeasures from China and whether this will be the playbook we see with regard to the United States, European Union and Ireland and how this will affect their lives.

Many people in this country are already being ground down by the relentless cost-of-living crisis and they simply cannot absorb higher prices from tariffs. Those who have not felt the benefit of the so-called "good times" know all too well they are likely the first to be hit in bad times. People are worried about their jobs, particularly those in certain sectors and those within the FDI sector. We must focus on what we can control and use our influence externally. We also need to look at what is within our hands, however, and what we can decide on. Tariffs cannot be an excuse to drop election promises. We need to strengthen our workforce by providing affordable childcare. We need to give people security by building the homes workers can afford. We need to invest in apprenticeships, education and research and we need a health system people can access when they need it. There is an overlap between what people need and what our economy needs. We need an ambitious investment strategy in public services and infrastructure that includes public transport, energy, water and roads and urgently addresses the backlog in planning.

I am sure there is not a Member in this House who has not been told by businesses - whether they are some of the largest in the country or smallest - that the issues pressing down on them are the issues of housing, infrastructure, energy, cost and insurance; all things that are within the grip of the Irish Government. We need to send out a strong signal to people in industry that we are going to take our economic competitiveness into our own hands to lead with no more losses or delays being an issue so we can finally get to grip with the crises facing this country.

We also need to ensure Irish interests are heard at EU level because we cannot outsource this to Europe. We must have a strong Irish position on what works for Ireland. President Trump is openly talking about prying open markets and breaking down barriers. He wants unfettered access to every market. The US main trade grievance with the EU is the trade deficit. President Trump blames the deficit in goods predominantly on non-tariff barriers but that really means our laws and standards, specifically our health, environmental and agricultural standards. We should not make any mistake about it: agriculture is very much in the crosshairs of the American Administration and but our agricultural standards cannot be dictated to us by any country, even one as powerful as the US. We must protect Irish farmers and Irish agriculture. Talking about tariffs while making concessions on laws and standards would be a mistake and would undermine our sovereignty and credibility.

I want to repeat several asks we have today. We need sectoral assessments done immediately - I asked this of the Minister for Finance, Deputy Donohoe, last week - and those assessments need to be shared. Through those assessments, we could look at how and if we need targeted supports to support enterprise, jobs and employees. The all-Ireland economy needs to be prioritised. The North-South Ministerial Council will have an important role to play and needs to be convened without delay, as Deputy McDonald said. A word of warning must also be issued. Europe is set to look at several countermeasures and will join Canada and China on that but it is also looking at a second set of countermeasures. If you are looking at implementing tariffs as a set of countermeasures to what President Trump has done, the scale and breadth of that will mean that the prices paid by Irish consumers will be pushed up in the middle of a cost-of-living crisis. The scale and breadth of that will impact on Irish jobs and Irish public finances. That is not just what Sinn Féin is saying; the ESRI and Department of Finance analysis states this is the case. We need to be very cautious not to do what President Trump has done, which is a reckless agenda that will impact US consumers. We must not fall into step on the same thing. Those countermeasures would be a tax on Irish consumers and Irish people and European citizens would pay the price for it. The use of some of the tools relating to anti-coercion measures that are being trumpeted by other countries would also have a deep impact on jobs in Ireland and enterprise here.

It is time to have cool heads and not follow President Trump down the road of economic self-sabotage which would eventually have ordinary workers and families pay the price.

Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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Tá an plean atá ag Uachtarán Mheiriceá, Donald Trump, gan loighic, gan chiall, gan phlean agus le himpleachtaí an-dainséarach agus an-dáiríre do mhuintir Mheiriceá sa chéad áit, ach do phobail thar timpeall an domhain freisin.

The imposition of tariffs by President Trump are illogical, arbitrary and, in many respects, without any basis in reality in respect of talking about retaliatory measures without any evidential basis. Most importantly and fundamentally, it will have serious negative consequences for citizens in America and across the world. Unfortunately, as so often is the case, it will be the ordinary workers who will first see the implications if inflation rises. Those who are on the margins are likely to be most affected when they look at their trolley of goods in the supermarket and it is workers who will face the consequences if we see lay-offs or a slowdown in investments.

It is undoubtedly a very worrying time. It is important to have cool heads but a clear eye. We cannot and certainly should not panic but nor can we underestimate the threats faced. We must take them seriously. There are many workers up and down the country. In my own constituency in Cork, there is a significant number of jobs in pharmaceuticals, life sciences and different sorts of manufacturing connected to the US economy or US business. Right up and down the country, there will be significant concern about people's futures and jobs, about how all these high-level discussions and about how countries are exchanging tariffs and the tit-for-tat that goes on. What is that going to mean for them and their families? People will want to hear what the Irish Government is going to do and what we can control here. In my view and evaluation, Ireland has been left uniquely vulnerable due to the policies of successive governments that have relied excessively on tax incentives and have failed to invest in our infrastructure or diversify. That is a problem.

As I have been saying since February, four primary areas need to be addressed. First, we need to use our voice at a European level to ensure the interests of Irish workers, business and the economy. We must use our voice to the greatest extent possible. I raised the issue in early March regarding the dairy industry and the Irish distilled drinks industry. It is welcome that it appears they are not included at this point in time but pressure must continue. It is clear the agri-food industry is in the crosshairs of the American Administration. I note that some of the language on this has varied in recent weeks. Some of the language from Government representatives has spoken of the need to step back and evaluate the situation. I do not believe that was the Government's first instinct; the first instinct was to ensure we were centrally part of any response from Europe, without necessarily offering a critical voice. If the Government is taking on board what we and others have said, including industry voices, that is welcome.

I would be concerned that any actions in terms of a knee-jerk rush to retaliatory tariffs will have clear implications for Irish workers and for Irish citizens as regards costs. We cannot very well argue that what Trump is doing is profoundly damaging to the American economy - and it is - and then do the same thing to our own economy with all the implications for workers and businesses. There should be no knee-jerk reaction. Any actions the EU takes must have a clear plan, a clear objective and need to be clear-sighted in terms of what they intend to achieve.

The second issue relates to diversification. We have become far too reliant on a small number of markets. We have failed to build up our own domestic economy. That is a point that Sinn Féin has been making for many years. The third issue relates to supports. I echo the call made by Deputy Doherty in relation to a sector analysis. We also know what companies are exporting to the US. It is possible to evaluate who is doing the exporting and make sure we are meeting their needs and that we are reacting to that. The fourth issue relates to infrastructure. Along with my colleagues, I have been meeting representatives from the key organisations in pharmaceuticals. I listened to the Minister and the Tánaiste talking about careful management of our economy. Even aside from the whole issue of bike sheds and event centres, we spend so much on things such as HAP because we failed to invest in social housing. We talk about the huge success of pharmaceuticals in Cork. The next huge industry for Cork could be floating offshore wind. We do not have the electrical grid to support that. The reality is that these issues relating to infrastructure have been around for years and they have not been addressed. We hear the talk time and again that we are going to invest in infrastructure. It has not happened and it has left us vulnerable.

Rose Conway-Walsh (Mayo, Sinn Fein)
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Since President Trump began his second term of office the world as we know it has become a more volatile place. His early statements about turning Gaza into the Riviera of the Middle East through a policy of ethnic cleansing shows just what absurd thought processes we are dealing with. Combative statements dominate American foreign policy. That is now finding its way into economic policy. It is well known that Trump's imposition of arbitrary tariffs on products manufactured in countries across the globe will bring pain to the American economy and higher prices for American citizens. The EU is a massive trading bloc responsible for two thirds of foreign direct investment, FDI, into America. These ill-considered tariffs by President Trump will mean that America will potentially have to increase its debt ceilings with all of the associated implications for American GDP.

The only outcome will be the suffering of Trump's own citizens. So much for Making America Great Again - great for who you might wonder. So too would be the outcome of this State if the EU rushes headlong into the pursuance of counter tariffs. The escalation of prices of normal goods in an environment where people can ill-afford the most recent price hikes would be hugely damaging to Irish households. That is why we in Sinn Féin across the island have been calling for a measured approach from the Government aimed at de-escalating the situation. I urge the Government to approach these choppy economic waters calmly and in the best interests of all of the citizens of Ireland.

The possibility of differentiation in tariffs on the island further compounds the threat to our national economy. Clarity is required regarding the implications of the tariffs in the North under the terms of the Windsor Framework. There can be no economic hard border on the island of Ireland.

Of course, if we governed our own affairs we would not be facing this discrepancy. We would be facing this hurdle in the full strength of our national economy rather than with one hand tied behind our backs. However, to mitigate, I urge the maximum level of engagement between the Government and the Executive. I welcome the engagements that have taken place so far. As was said, the North-South Ministerial Council should be convened immediately. Our island economy is inextricably linked in agriculture and tourism and across the supply chains. Food safety and food security are becoming increasingly important as well.

During the Brexit negotiations we, with our allies in the EU and the US, ensured there was no hard border on the island of Ireland. The same diligence must be applied in this scenario in order to protect the prosperity of everyone on the island. In the face of a potential slowdown in our economy, I urge the Minister to speak with his ministerial counterparts to ramp up public expenditure to address the deficits in infrastructure.

There must be a sense of urgency and purpose if we are to have any chance of remaining competitive for FDI and ensuring the growth of our indigenous businesses. That means housing, water, energy security, transport links, research and development, investment in upskilling, in lifelong learning and in using the national development fund for what it was intended to be used for. We can never again ask the most vulnerable of our citizens to endure the brunt of economic hardships. The Government did this following the bank bailout. This should never be done again. Do not make the ordinary Irish workers, the disadvantaged, the sick and the elderly, Trump's victims.

Now is the time for the Government to protect the interests of those living in Ireland and the young people we want to encourage to come home. We have to have housing and infrastructure for them. We need them here and we owe them. In the immediate term that means ensuring the EU is available to sit at the table with the US Administration. There are long and mutually beneficial trade relationships between Ireland and America. From the ashes of Trump's tariffs there must be an open door for these to be maintained and cultivated once more. This can be achieved by increasing at this time our diplomatic efforts across the United States. The value of the relationship we have built over decades is critical. We in Sinn Féin will continue our engagement with US politicians, civic society and with our own diaspora. We do not know what the next move of this unpredictable American Administration will be and we can draw some hope from the fact that some of the Republican Party are deeply troubled by the direction their President is taking. What we can control is our response. The Government must ensure the EU remains calm in the face of disruption and provocation.

We must also use our own voice. We must protect jobs, businesses and our public finances and above all we must protect the workers and families from the reckless and short-sighted economic policies that we have been presented with.

Duncan Smith (Dublin Fingal East, Labour)
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I am sharing time with my colleague, Deputy Marie Sherlock.

I was taken with the comments of the Minister for Finance, Deputy Donohoe, in his contribution earlier. The Minister has been Minister across the finance briefs for many years, through a number of crises. His general approach to things is one of calm. He is not one for hyperbole. He spoke about global economic activity increasingly fragmenting along political lines, about storm clouds and about how tariff-related issues will interact with other structural challenges, such as ageing populations, AI, climate change and high public debt, and he called it unprecedented. Having said that, I hope the Minister will be more open to instruments that could help to protect the Irish economy and Irish workers. He has set out just how serious this issue is. However, the truth is that at this point we do not know how much damage these tariffs will do to the Irish economy. We know that a 20% flat tariff will apply to all EU exports. We also know that tariffs on pharmaceuticals are likely to come, probably in the near future. There is a real risk here, maybe not in the immediate term given the nature of the pharma industry, but certainly in the medium term. We have seen the Trump Administration's response to China's response to the tariffs that it is willing to essentially go nuclear. What we are seeing now between the US and China is so concerning that there is further pressure on the EU to respond correctly and in a serious manner but in a manner that minimises the damage to our domestic economy. That is not an easy challenge.

That is why we have to be as proactive as we can in our approach. There must be a comprehensive assessment across the economy of which sectors are affected and which jobs and potential job growth sectors will be affected. That will allow us to ensure that supports, where needed, can be targeted, and that we can ensure we are developing the right instruments to deliver those supports. We can say with some certainty that the agrifood and dairy industries could be especially hard hit, with many small businesses coming under extreme pressure and with small exporters that make specialised parts in this industry being exceptionally hard hit.

During Brexit, our European allies stood firm with us in protecting both our economy and peace on our island.

We must now stand firm with those allies and work together to combat these tariffs. The EU does have significant power and agency but they must be used wisely. This is a time to be strategic while also being firm in how we negotiate. We cannot allow a precedent to be set where the Trump Administration gets to bully its so-called allies and get everything it wants. To that end, it is vital that across the House, we see what the proposals from the EU are before they come into being. This is not a situation where the US holds all the cards. While there will need to be negotiations, we come to them in a position to exert a significant amount of leverage on the US economy and we must be prepared to do so. The EU also has an anti-coercion instrument that can be deployed against tech companies if needs be. While we do not want it to get to that point, no option should be taken off the table. That is, of course, if the Trump Administration is actually interested in coming to the table in the first place.

At home, we need to learn from the past and be much more agile in how we respond to economic shocks. There are a number of measures for which the Labour Party is calling, informed by our experiences through Brexit and the Covid pandemic while acknowledging that neither of those two shocks are the same as what is happening now. We want to see a comprehensive assessment of the impact tariffs will have on Irish companies and Irish jobs. Only then can we plan properly for how we can support our people, workers and businesses.

We also want to see a short-term wage subsidy scheme. We would like to see a marketing fund for sectors such as agrifood and dairy to open new markets, and a credit guarantee scheme to support businesses. The concept of a short-term wage subsidy scheme like the German Kurzarbeit model that keeps people close to their employers in periods of uncertainty or turbulence is something for which Labour has been calling for a number of years. Indeed we are not alone in calling for such a scheme, with ICTU calling for such a scheme during Brexit for the agrifood sector and IBEC calling for a similar scheme. Such a scheme could support companies affected by the tariffs to hold on to some of their skilled workers as they adapt to changed trading rules and help develop new markets. This could be a vital move to hold on to our economic competitiveness for when this storm passes. It would protect employees from redundancies with State subsidies and shorter working hours when companies encounter difficulties. Importantly, like the German Kurzarbeit scheme, it would guarantee that each worker has access to training or upskilling to improve productivity and prepare workers for potential new opportunities. The scheme could be funded through the Social Insurance fund and the National Training Fund, both of which are in substantial surplus. The Social Insurance Fund ran a surplus of €2.7 billion in 2024 with an accumulated balance of over €10 billion this year while the National Training Fund has a surplus of about €1 billion. Such schemes are not without precedent in Ireland. During the pandemic, we had the temporary unemployment wage subsidy scheme. The Minister should be looking at an emergency measures in the public interest Bill to address the impact of tariffs. I again emphasise that we are not calling for the exact same schemes. What we are calling for would be much more targeted and sophisticated but what those schemes show is that the State can act to protect jobs. What we are calling for is for the State to act to protect jobs. While the smaller details still need to be established, we do know the big sectors that are going to be most affected are likely the agrifood sector and the pharma-medical device sector. Of course, there will also be the unexpected areas hit. Again, we need to ensure that we are agile.

Other big sectors are now also facing massive impacts, such as the Irish whiskey sector. Many distilleries will be funded through long-term loans built against their stock and there will be a need to provide targeted supports like more low-interest long-term financing and a marketing fund. The goal of State action must be focused on allowing companies to adapt to changed trading realities and retain their skilled and experienced workforce as much as possible.

International trade has long been a powerful driver of economic prosperity. As a small, open economy, Ireland has benefited greatly from the free exchange of goods and services across borders. Our trade relationships with the EU to the US and beyond have helped fuel our growth and bolster the standard of living for millions of people in this country, although I acknowledge that we are not without our problems and still have a number of structural crises we need to resolve with the prosperity that has been created. Yet trade is not simply about economics. Again, this is what I found interesting about what the Minister for Finance said earlier. Trade is a tool for diplomacy and co-operation and, until recently, we in the western world have looked at the mutual dependencies that trade has created as helping to foster peace and stability. Just because the US has decided to abandon diplomacy and co-operation, it does not mean that the rest of us have to. As an EU member state, Ireland is committed to multilateralism, rules-based trade and a rules-based order and that will not change nor should it. Our participation in the Single Market has not only boosted our economic fortunes but has also anchored us to our allies who share our values of democracy, fairness and peace. Whether it is Canada, Latin America or Asia, there are markets out there we have not fully harnessed due to our reliance on our hitherto very close relationship with the US but we must look at exploring these markets.

We also need to acknowledge that the attacks on democracy that we have seen around the world are concerning. The fact that only 25% of global citizens are living under liberal free democracies compared with 50% in 2004 is worrying. The rise of autocracy and authoritarianism that seems to have swept the globe needs to be a wake-up call for all of us to take a stand against the US attempts to weaken other democracies. What none of us or any economist of good, bad, indifferent or excellent standing can understand is, "Why use tariffs?" They have never worked. Nobody wins. It is a lose-lose situation. There has to be a motivation within the US Administration such that they are being used in a weaponised capacity to hurt the countries to which they are being applied, which is, more or less, every country in the world, with the likes of Russia and North Korea being spared at this time.

While this House has seen significant divides in recent months, indeed a lot surrounding the issue of democracy, this is now a time to come together. We can work together with our allies in Europe to put pressure on the Americans and Trump to change course. We have done it before and we can do it again.

To those who may be listening in and are fearful of the future, I say that this storm needs to be weathered. To young people who have seen three global financial emergencies in their short lives and are growing up in an era of economic migration and emigration, I would say that this is a storm we need to weather. We need to show our young people that we in Ireland and Irish leaders are doing everything we can to protect jobs and provide opportunities here so they do not have to leave our shores. That is the challenge for this Government and this House.

Marie Sherlock (Dublin Central, Labour)
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As this is a trade war that none of us want but that we have to respond to, we need to be clear about a few things. I do not believe anybody in this House is calling for an economy-wide wage subsidy scheme as I heard the Taoiseach and some others suggest in recent days. To do so would be disproportionate and unnecessary, so we should not waste our time on a bogus debate about jobs supports or no jobs supports. What we clearly need are targeted wage subsidy supports for the worst-affected sectors. The reality is that a number of firms are almost solely focused on exporting, particularly to the US, and they need our help. They are found in the alcohol, dairy, car components and medical devices sectors and are facing the double whammy of the weak dollar and tariffs and the impact has been immediate. It is very different for the pharmaceutical sector and we worry about it too but the impact for it will be over the medium to long term. We have yet to hear of the tariffs to be announced for that sector. For the sectors that are suffering now, the reality is that some of those are high margin while others are lower margin. Some have a high price elasticity of demand while others are much more immune to price changes. No one size fits all but we have to learn the lessons of the past. In particular, we must ensure that we allow firms the room to hold on to their staff while they try to divert to other markets.

We have a short-term work scheme that is not fit for purpose. It is unconscionable that we would ask workers to sign on the dole for the days they are not working, facing a cliff edge in terms of their wages when we have the firepower of the State to ensure that those wages are supported for a short period of time. We are not talking about anything long term. For a short period of time, the Government can ensure those workers around the country who are now worrying about how they will pay their mortgages or car loans or pay for the school tour for their child can be supported in the weeks and months to come while those other marketing supports and all the other supports from the State are put in place to help those firms redirect their trade to other countries.

I was a young trade union official in 2009 and 2010 and had to go into unionised workplaces to look at the finances of companies that were facing very difficult situations.

The memories are seared into my brain of the devastation on workers' faces when I had to talk to them about the dramatic drop in revenue, the possible pay cuts or, indeed, redundancies that were on the table. The damage of those job cuts and wage cuts on people's lives and skills was in this country for many years. It lasted for well over a decade. Compared with that awful time in Ireland when we went through recession and the level of our deficit was through the roof, our country is unrecognisable now. We must use the resources of the State to ensure that workers, particularly those in low- and middle-income jobs, are supported in the short to medium term so that their wages do not fall over a cliff edge and while their employers are trying to find other markets that they are supported. We do not know whether these tariffs will be short or long term. We do not know what Trump’s true intentions are but what we do know is that the impact on workers and their living conditions can be smoothed over by the State through temporary supports in the here and now if the Government so chooses.

Finally, I would ask that we move away from this all-or-nothing kind of diatribe that we have heard from certain members of the Government in recent days about an economy-wide wage subsidy scheme. Nobody is asking for that. We are asking for targeted supports for the sectors worst affected.

Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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The tariffs announced by the US Administration have caused concern and anxiety over the impact on Irish businesses and job creation across the country. The uncertainty in respect of sectors such as pharmaceuticals adds to this. While I know the Government has been preparing for this, it is regrettable that the US Administration made the announcements. Nobody wins from tariffs. However, it is important that the Government continues to analyse these measures and their impact on our trade along with the European Commission.

The EU will have to respond in a proportionate manner that protects our businesses and citizens. It is essential to continue dialogue and negotiations. The tariffs represent a huge challenge to Irish exporters to the US across all sectors. I will talk about my own local area of Carlow-Kilkenny. I am mindful of local farmers, distilleries and pharmaceutical companies which have contributed so much to our local economy and who are anxiously waiting to see the full impact of these charges. The growth of the economy in Carlow and Kilkenny and job creation could also be under threat. This is a huge concern of mine. We need to have continued development in our counties and towns. That is vital. It is important that we protect jobs and livelihoods as best we can. I welcome the continued engagement by the Taoiseach, the Tánaiste and the Government with the European Commission to ensure that Irish sensitivities are made clear.

Tariffs are deeply disruptive. They drive inflation and hurt consumers. Ireland must remain committed to the principles of free and open trade so we can retain high-quality jobs and protect consumers from sharp increases in the price of critical goods. Free and open trade brings opportunities, creates well-paid jobs and fosters innovation.

I commend the calm response of the Government and I hope there is still time to reach agreement with the US Administration. However, if that is not the case, I welcome the Government’s efforts, alongside the European Commission, to ensure that the impact of these tariffs on our economy and future growth is as small as possible.

Cathal Crowe (Clare, Fianna Fail)
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I am glad to have an opportunity to speak on this issue. It can be that less is more in these scenarios, instead of having all sorts of suggestions from Opposition benches and backbenches on what course of action the Government should take. This is a very delicate scenario which is evolving by the minute, unfortunately. It is really important that we place full trust in the Taoiseach, the Tánaiste, the Cabinet and negotiators who will attend meetings in Europe and also talk across the Atlantic with our counterparts in the United States.

The imposition of tariffs is very retrograde and backward. The last time we would have seen this was probably some time back in the 1930s. The world has embraced free trade since then, and how the world has taken off. We do not live in a perfect world - we spend every waking and living moment here in this Dáil Chamber speaking about the problems our country has and how we would like to fix them - but free trade has benefited this country hugely in job creation and prosperity. It has lifted all boats in this country and across the European Union bloc. I place full trust in the coming weeks in the Taoiseach, the Tánaiste and the Cabinet on how they approach this, but the approach needs to be one in full step with our colleagues across Europe and have its focus on jobs and livelihoods.

This Government is only in place a few weeks but the previous Government, and I was proud to be on this side of the House for those five years, showed during the Covid pandemic that it had huge ability and agility to quickly react to scenarios to ensure things were stabilised, jobs were kept safe and if people lost jobs there would be the safety nets of social protection there. That is something on which the European bloc can pride ourself collectively. The European Union member states are largely western liberal democracies. We have good social protection systems. We can lean on each other and the European Central Bank. Soon enough Donald Trump will have to rethink his tariffs. Ireland very much needs to move as part of the European bloc on this. We should use every voice here in unison to support the position of the Government and the European Union. I would be disappointed if there were any voices in the Chamber in the course of the debate which might say something very left field that would be picked up very quickly by media beyond our shores.

Séamus McGrath (Cork South-Central, Fianna Fail)
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I too welcome this debate and the opportunity to speak. The stakes are very high, as mentioned earlier. We now have some more clarity on President Trump’s announcements. He is upending decades of international trade norms and relationships in a matter of weeks. That is extremely serious. For Ireland it presents a real threat. We are a small open trading economy with a very strong foreign direct investment sector so we know the consequences can be very grave. We now see the back and forth between China and the US. Unfortunately, it is becoming a runaway train in terms of increasing tariffs.

I fully support the Irish Government and the EU position on this. It is important that we give space, take a cool level-headed approach, give dialogue a real opportunity to succeed and do our best to negotiate our way through this particularly difficult situation. That is in no way a sign of weakness - it is the right thing and smart thing to do – but we must also send a clear message that if discussion and negotiation do not work then we will respond as an EU bloc. That has already been made clear in the response to the earlier tariffs on steel and aluminium. The EU is now responding and that is the right thing to do.

We know tariffs are counterproductive. They only result in dampening economic growth and expectations, as well as increased consumer prices, inflation and unemployment and have significant potential to cause a major international and worldwide recession. That is something we all want to do our best to prevent.

My constituency of Cork South-Central has a very strong foreign direct investment sector. These tariffs will affect all sectors - food and drink, engineering, construction, agriculture and so on - but they will be particularly damaging in pharma, biopharma, medical devices and life sciences as a whole. In my constituency, there are a lot of US companies in these areas. Unfortunately, the US President has said the tariffs on pharma will be coming very soon. That is worrying. We do not know what to expect but it is not good.

It is important that as a Government we renew our strategy in foreign direct investment and engage very actively with the sector and send a very strong message to it that we will take a step-by-step approach with businesses to support them through the choppy international economic waters ahead. It is important that we restate and reiterate the attractiveness of Ireland as a location for foreign direct investment. Obviously, our well-educated and capable workforce, our access to EU markets without tariffs, our English-speaking country and the very pro-enterprise Government are important. Above all, it is critical we have a strong political consensus in the country to face this threat. Together we are stronger. This is an existential threat and we have to stand together politically so we have one voice on this and face the threat in the strongest possible way.

Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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I agree with colleagues that this is an existential threat to our economy and to society more generally. It is rather surprising that the party of Eisenhower and Reagan is now led by an individual who is moving towards protectionist policies that were never part of the Republican tradition in the United States.

I hope that those within the Republican party who believe in business might try to convince President Trump of the errors of these actions. As so many have said, there are no winners as a result of tariffs. Consumers and businesses in this country and around the world will suffer. I place great faith in the Government and in the EU negotiators. I wish Maroš Šefčovič, the EU trade commissioner, who is very familiar to this country because of his role in the Brexit negotiations, well in the discussions he will have to lead on behalf of the European Union. It is critical within these Houses that every opportunity is given to Ministers to ensure that they are represented at EU decision-making tables. At no stage should those seats be left empty. It is critical that when a pair is required for a Minister to attend an EU Council meeting, it is provided.

This will have significant impact on all businesses but for small businesses, many of which export significantly to the United States, it is going to be particularly difficult. They may not have the individual human resources to address this. Within the programme for Government there is a commitment to establish a small business unit, looking at how red tape and so on impacts. I urge the Minister of State in his response to address how that might be set up, with a particular view to making customs as easy as possible. It is also important that we explore links with other parts of the world. It is mentioned specifically in the programme for Government that we strengthen our links with Latin America, for example. We must also talk about the importance of free trade. As a Government, we have always believed in its importance. Globally and right through history, free trade has always been shown to create more jobs and lift people out of poverty. That does not mean that free trade should not be fair trade. We always have to have regard to human rights and to environmental and labour standards. It is critical that we stress how free trade can help all countries and citizens.

With that in mind, I ask that a very clear commitment now be given by the Government to ratify the comprehensive economic and trade agreement with Canada. Canada has been a very long trading partner with Ireland. It is our 12th biggest trading partner. There are over 15,000 people employed in Ireland by Canadian companies, and Irish companies employ over 6,000 people. To be able to increase free trade between the European Union, Ireland and Canada is something we should welcome. It has been growing in recent years. There is a Government commitment to do it but I want a very clear timeframe in the Minister of State's response as to when we will ratify the CETA agreement.

On the issue of Ireland's membership of the European unified patents court system, for those inventors and creators, to ensure that patents and our intellectual property is recognised and protected throughout Europe, the referendum which was postponed should now be held. It would be appropriate for it to be held in conjunction with the presidential election this autumn. A clear commitment to that would signal that we take the issue of patent protection seriously.

It is important that the entire House will support the Government in its actions on this, and that we get as much information as possible out to businesses and citizens as soon as possible.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
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I welcome the opportunity to discuss the imposition of US tariffs on Ireland and the European Union. I will echo the Taoiseach. There is no justification for the imposition of these tariffs, none whatsoever. What we are witnessing is not simply a policy misstep, it is a backwards step. These tariffs will hurt businesses, workers and families on both sides of the Atlantic. My constituency of Dún Laoghaire is home to high-value exporters from fintech to pharmaceutical innovators who ship directly to the United States. I know the harm these tariffs will cause. Some 80% of our pharma exports to the US are not finished goods. They are critical components of the American supply chains, parts of the global engine that makes healthcare work. Now that engine is being clogged by policy rooted in protectionism, not partnership. Let us be clear that these tariffs will not just land on the ledgers of European exporters. They will also show up in the monthly budgets of millions of American families. They will raise the cost of medicine, squeeze small businesses and pause investment, some of which unfortunately has already begun. They threaten to unravel what has long been a success story, the deeply integrated, mutually beneficial EU-US trading relationship. In Ireland and across Europe, we believe in enterprise. We believe in fair trade and we believe in negotiation, because that is how responsible nations resolve disputes, not with tariffs but with dialogue. That is why Ireland strongly supports the EU's readiness to sit down at the table today, tomorrow, whenever the US is ready to talk seriously. However, while we hope for peace, we must prepare for pushback. If negotiations fail, we will stand with our EU partners in defending our economic interests proportionately, firmly and fairly. This is not just about trade. It is about the kind of world we want to build, one where rules matter, co-operation triumphs over compulsion and shared prosperity remains our common goal.

Seán Crowe (Dublin South West, Sinn Fein)
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There is no doubt that foreign direct investment has been good to Ireland. The pharmaceutical and medical technology sector in particular has been an enormous boon to the economy. This has been supplemented in recent years by the tech sector. High-paying jobs and exports allowed Ireland to progress beyond our small island and become a global economy. The reports overnight that the pharma industry is next in the firing line could spell disaster not only for the economy but for those in treatment here, across Europe and in the US. We could see drugs becoming inaccessible through increased costs, shortages or indeed supply lines being disrupted.

The Irish economy is particularly vulnerable to a tariff war due to its deep reliance on international trade and its unique economic structure, with its heavy reliance on large American multinationals that use us as a springboard into the European Union. A tariff war between the major economic blocs of the US and the EU will disrupt these trade flows, reduce competitiveness and lead to job losses in sectors dominated by foreign direct investment. Ireland's openness to trade, reliance on foreign firms and the integration into global supply chains make it particularly sensitive to the economic shocks caused by tariff wars. Ireland is one small part of the EU and, as the Union moves towards federalism, it has put smaller member states further out on the periphery. Any tariff war that escalates into a broader slowdown in global trade would likely hurt Irish GDP growth. Ireland's economic performance is closely tied to global demand, especially in the EU and US markets. Investor sentiment, exchange rate volatility and reduced business confidence in such a scenario could also lead to capital flight or reduced investment.

What we are seeing play out now is the weaponisation of tariffs on a scale never seen before. The damage to Ireland could be catastrophic. Investor flight is one of the key motivations of President Trump's drive for tariffs. The fiction is that the US companies in Ireland are somehow a theft and that squeezing those companies through tariffs might bring them back to the United States. Trumpism is a regressive, destructive force that seeks only instant gratification at the expense of long-term goals and relationships. This level of brinksmanship serves only to enrich a tiny minority of Trump-supporting billionaires at the expense of millions of workers around the world. Those with pension funds will look on in horror as the stock markets flounder and panic.

The danger now is that we kowtow to these threats and bully-boy tactics by giving the US unlimited access to our markets at the expense of domestic industries. Irish agriculture in particular could suffer enormously if we open the floodgates to American producers, particularly when combined with the looming impact of Mercosur and its bleak outlook for the Irish farmer. This is not the time for rash actions. Trade deals that massively impact on Irish agriculture and elements of the Irish economy, or the establishment of the very worrying investor courts, must not be rushed into as a response to these threats.

Successive Governments have used American multinational money like a money tree that would never stop. They built up an over-reliance on corporation tax receipts from a small number of companies while narrowing the tax base through populist income tax cuts. We should be feeding direct strategic investment into domestic industries to reduce dependency on volatile global trade dynamics.

4 o’clock

These foreign companies should be seen as a bonus not as the foundation of our economy. It is shortsighted and those of us who have said so were deemed doomsayers or accused of not wearing the green jersey.

These tariffs may be a temporary obstacle or they could be the first shot in a global trade war. The fundamental issue remains the same, however. Ireland is vulnerable and will remain so until we take steps to diversify our economy. Any failure to do so means that any trade disruption affecting all sectors, whether through tariffs, regulations or other barriers, will always be a risk of disproportionately impacting the overall economy.

Should a global trade war ensue, there must be a support scheme ready to be implemented in order to protect thousands of jobs and families. Trips to Washington are all well and good but it has to become clear that the White House has become a law unto itself and the relationship with Irish America is not the safeguard it has been in the past. In the short term, we must look to safeguard jobs and livelihoods and our all-island economy. In the long term, we have to look beyond corporation tax receipts from a small number of companies as the bedrock of our economic growth.

Sinéad Gibney (Dublin Rathdown, Social Democrats)
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I welcome the opportunity to make statements on the tariffs that we know are worrying people across the globe, this country and my constituency of Dublin Rathdown. Tá faitíos ar go leor daoine fud fad na tíre. Tá an faitíos sin orthu mar gheall ar a gcuid post, mar gheall ar chostais maireachtála agus mar gheall nach mbeidh na seirbhísí poiblí a theastaíonn uathu ann mar gheall ar cúlú eacnamaíoch. These concerns extend, in particular today, to the pharma sector in which, following the announcement we all woke up to this morning, people's jobs are increasingly under threat.

I will speak about three levels, namely, the ways in which, domestically, at EU level and globally, we need to respond to this. As Social Democrats, we emphasise that everything must remain on the table for now, from supports for consumers with regard to the cost-of-living increases we will see to supports for businesses in particular. This is not to suggest these supports need to be introduced or committed to immediately but they must remain an option. I am referring here to the mixed messaging we have heard from senior Government spokespeople over the past few days as to whether these supports will even be considered or remain on the table as an option.

I recommend in particular that the Government review the Kurzarbeit scheme in Germany, which has won plaudits from the OECD and elsewhere as a way to maintaining the employment-employer link that we all saw work so well during the Covid-19 pandemic when we had similar support in place. These supports will not be required to the same extent but they need to remain on the table.

Similarly, cost-of-living supports should be part of the upcoming budget. I note the Minister for Finance has already suggested that these will not be a part of this year's budgetary package. In the current context, they have to be part of the budget because people who are already living close to poverty or in poverty are now facing increasing prices, which we must take into account.

I also urge the Government to continue with the type of preparedness and analysis we saw with Brexit. We saw the Civil Service excel in its analysis of the situation and make suggestions as to the potential outcomes. I urge that this work be continued.

We all have to consider the situation of Northern Ireland and the fragile peace and stability we have. These have been held together by the Windsor Framework and now needs to be looked at anew in the current context in which differential tariff rates apply and there is potential for differential rates with regard to the EU retaliation.

On the EU level response, the EU is obviously where this will be negotiated. I welcome that the Government has been so hard at work in recent weeks and continues to represent Ireland's interests at EU level. It is vital that we prevent escalation in this context and continue to represent the position that retaliatory tit-for-tat tariffs are not good for anybody. Instead, we need to see partnership across the European Union and need to maintain unity because Trump will seek to sow disunity among member states. As one of the 27 member states, we have to ensure that what we commit to expresses our interests and maintains the European Union within that context.

We also urge the Government to push at European Union level for the repurposing of the European globalisation adjustment fund, which was set up to take account of the job losses on globalisation. I believe this fund can be repurposed for the moment we find ourselves in.

We must seek partners within the EU, particularly for our indigenous businesses, to ensure that where there are opportunities for market growth and supply chain sources, they are readily available. Enterprise Ireland does an incredible job in seeking those partners both within the European Union and globally. We must ensure that work continues so that indigenous businesses can be supported to repurpose their operations and continue to have lifelines to other markets if and when the American tariffs kick in and block out the potential of the US market.

We have seen that there is an over-reliance on one particular country. We have to ensure we invest in indigenous businesses. Unfortunately, despite the surpluses we have seen in recent years, we have not seen the investment in infrastructure that the Social Democrats have long called for. We need to commit to that now. Caithfimid a bheith ionraic faoin áit a bhfuilimid anois. Bhíomar ag brath an iomarca ar ár naisc thrádála le tír amháin. Caithfimid an deis a thapú naisc thrádála a neartú le tíortha san Aontas Eorpach agus tíortha eile ar fud an domhain chun poist, caighdeán maireachtála agus geilleagar na hÉireann a chosaint ar bhealach inbhuanaithe.

At a global level, we need to ensure we are looking at how we can co-ordinate with global partners to maximise our impact regarding any retaliatory measures taken. What I mean by that is that if we look to Latin America, Asia, Canada, Mexico and so on. Everybody is hurting from these tariffs and we need to ensure that we co-ordinate with these partners so that when we introduce retaliatory measures, we do so in sync with those other markets and countries to ensure they have as big an impact as possible on the US. We can also look at those other areas of the globe for alternatives to the markets and supply chains that will be disrupted for Irish businesses through these tariffs.

We also need, at a global level, to ensure we prevent any kind of race to the bottom. Our standards in the European Union ensure our consumers are protected and ensure we have a supply to our market of products and services we know we can rely on. We do not need to see any erosion of that. We know that Trump and his Administration are going after trade barriers as well as tariffs. There is a real risk that we will see a slippage of standards. We need to ensure that our voice prevents that as much as possible.

We also need to look at the US domestic context. We know the Trump Administration is very volatile, with tariffs announced, then revoked, reintroduced, paused and what-not. We are seeing pressure building up domestically in the US and a raft of domestic measures that is causing huge problems for Trump. Given that he constantly speaks to his base and relies on it, if anything is going to move him on this issue, it will come from inside.

My colleague Deputy Gannon will speak to the specific case of USAID, the United States Agency for International Aid, which is storing up trouble for the entire globe. On day one, Trump cut off USAID completely and is shutting down the agency. The impact that is having and will have is absolutely huge. There are also the cuts by the Department of Government Efficiency, DOGE, and the many other ways at a domestic level that Trump is causing havoc, as well as the legal challenges emerging as a result. We saw a huge mobilisation at the weekend and we can expect that to continue.

I will remark on Deputy Malcolm Byrne's comments on CETA and Mercosur. Social Democrats support an open economy. We know our open economy has been good for Ireland globally and we want to ensure that remains the case as much as possible. That does not mean that we have to drop our standards. Trade agreements have been in place since 2017 and are operating functionally but it is the investor court under CETA with which we have an issue. We will continue to have an issue with it because that is where we are starting to see slippage. Supporting an open economy and ensuring that Ireland works well in that context does not mean we have to compromise. I urge the Government to adopt the same position.

Gary Gannon (Dublin Central, Social Democrats)
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When we speak about Trump's tariffs what we are actually discussing is an assault on Irish workers and global workers. It is also an assault on our industries and on the communities that have been built up around them. When we speak about Trump we have to remember who we are speaking about. Sometimes he is afforded too much credit and people ask what exactly does he want and how can we negotiate. Actually, what we are dealing with is a person who is lost in vanity. We are dealing with somebody who is monstrous in their intent. What he is looking for is chaos on a global scale. Through that chaos what he is looking for is people to come to him and be meek. This is for his own sense of corruption and his own sense of power. This should always be to the fore of our thoughts.

What this chaos merchant is doing in terms of instilling global tariffs and creating global disorder is aligning this with the removal of USAID. USAID has been very important on a multitude of fronts. When the tariffs impact on us, we will also be met with the consequences of the removal of global USAID. The removal these programmes endangers millions of people worldwide, especially those relying on health and humanitarian assistance. Critical health initiatives are involved, such as combating malaria, tuberculosis, HIV and AIDS. All of these are at risk, potentially leading to more deaths and disease outbreaks globally.

Reducing funding for emergency aid will worsen the suffering in war-torn regions during natural disasters. It will prevent the education of young girls and women. Local economic growth will be disrupted and long-term global progress will be hindered. USAID has helped to stabilise conflict zones and has prevented extremism. Cuts to USAID will lead to global instability. USAID has been a primary contact in the US and other regions. Its reduction weakens this engagement with the rest of the world.

Halting programmes that address the root of migration, global poverty and violence means all of us will be impacted on a multitude of fronts. The EU needs to take this seriously alongside the tariffs. We need to step up and let it be known that we too will be impacted in a multitude of ways. When we speak about the tariffs we need to express solidarity with the workers who will be impacted by them. In an Irish context this requires more than words. It requires reassurance to know the State will step in with support where necessary. It is also an acknowledgement that for us everything has changed now. There is no going back to the world we knew several months ago. Within this we need to be able to reorient ourselves and build new alliances. We need to see ourselves differently outside of the shadow of the United States. This requires courage in terms of how we legislate, how we see our place in the world and how we are willing to stand up and defend it.

Rory Hearne (Dublin North-West, Social Democrats)
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What is very clear is that Trump does not care about working people in the US. He does not care about working people in Europe or anywhere. What he is doing to the world economy and the US economy is sending it into freefall. As my colleague said, Trump's new world order will require a shift in our economy and our economic model. This will result in a shift globally. The question is how do we respond. How can we sustain employment? How can we support business? Importantly, how can we support workers? If we look at the level of working poverty and food poverty, we have been in the midst of a cost-of-living crisis for more than five years. One of the key parts of this cost-of-living crisis is what has been termed "greedflation", whereby in the context of rising prices businesses push up the cost because they know they can do so. We can see this in housing and basic grocery foods.

In what is likely to be another situation of rising costs for working people, the Irish Government has to look at how we can intervene and keep costs low and how we can support employment. One of the areas is housing. Unfortunately, the Government's housing policy, just like its wider economic policy, has left us more vulnerable than we should be to this economic catastrophe that is hitting. The over-reliance on institutional investors has meant we are seeing institutional investment fall off in terms of housing supply. It was core to the Government's Housing for All plan. This has left us vulnerable where housing supply is reducing. A report from Bank of Ireland economists issued yesterday states that as a result of the tariffs we could see private supply fall off and reduce in terms of the ability of people to buy. This is quite clear. Some people might say house prices might fall as a result. In fact, the failure to increase housing supply might leave house prices still maintained at a high level but workers facing a situation of reduced income and a reduced ability to borrow and, therefore, a continuation of the housing crisis.

What we need is the State to intervene. We need support for the delivery of affordable housing and investment in infrastructure so that we can create a sustainable economy. We cannot blame everything on what happens in the global economic situation. We have our own economy. We have our own population. We can invest in things like housing, healthcare and renewable energy. We can support workers and working families with their incomes, which can sustain our economy, and not make the mistakes of austerity.

Ryan O'Meara (Tipperary North, Fianna Fail)
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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.

Naoise Ó Muirí (Dublin Bay North, Fine Gael)
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It is incredible that no one in the entire US Washington Administration is challenging these tariffs. It is incredible that the Republican Party, the party which produced Ronald Regan who, for all his faults, understood the benefits and value of free trade, is moving away from this and clearly wrapping itself in the cloak of protectionism.

It is incredible that has happened. It is frankly incredible that the US Administration thinks it can rebuild its industrial base purely based on protectionism. I do not know what planet it is living on. It is incredible the US Administration has put out the falsehood that there are tariffs of 39% between the European Union and the USA, meaning the EU imposes average tariffs of 39% on US goods and services. That is patently not the case. Even a little research shows that the figure is between 3% and 5%. Cliff Taylor had a good piece on this issue in The Irish Times. However, that falsehood is out there now. It all seems to be about negotiation. This is a time of huge challenges for the EU 27. We have a serious security challenge to the east with Russia, and then a very aggressive trade war originating and breaking out on the western side of Europe. Is am cinniúnach é don Eoraip, but I still think the time of challenge for Europe is now and our best way to resolve this is clearly in negotiation and in partnership with the EU 27 bloc, to work as one and hopefully negotiate a way through this over the next while.

Martin Daly (Roscommon-Galway, Fianna Fail)
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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.

Mattie McGrath (Tipperary South, Independent)
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I ask the Deputy to please refrain from naming or referencing people when they are not here to defend themselves.

Martin Daly (Roscommon-Galway, Fianna Fail)
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There was no criticism. I was noting a comment she made on the radio reflecting advice she received.

Mattie McGrath (Tipperary South, Independent)
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This is not the radio. This is the Dáil Chamber so please refrain from it.

Martin Daly (Roscommon-Galway, Fianna Fail)
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All right.

Peter Roche (Galway East, Fine Gael)
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It would be pleasant if President Trump came along next week and said that this was an April fools' joke, but I doubt that will happen. There has been lots of commentary over the past couple of days about the impact this will have on our multinational corporations. However, I want to speak a little about the SMEs that make up 99.8% of our Irish businesses and employ more than two thirds of the workforce, which is an interesting statistic. Galway East is, thankfully, home to a thriving network of SMEs, for example, in the agrifood sector, which is the backbone of our rural economy and communities. That needs to be maintained and sustained. Many of these small businesses rely on imported ingredients and materials, some of which come from the United States. They include raw ingredients like nuts, fruit, packaging, specialist feeds and tech components. New tariffs on both US imports and EU retaliatory measures threaten the profitability of these businesses. Rising input costs cannot always be passed on to customers or consumers, especially in a competitive export market. The SMEs are not multinational corporations. They operate on tight margins. They are often in family ownership and are deeply embedded in our local economy. Their resilience is critical to rural jobs, food production and regional sustainability. We need to protect our indigenous businesses and not allow them to become collateral damage as a consequence. Tariff wars between global superpowers like the EU and the US should not become a burden borne by Irish SMEs.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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There is no doubt that after all of this, world trade as we knew it before the announcements were made will not be the same. Companies will be affected. That is before we even get to the hangover of whatever arrangement is reached throughout the world once these tariffs kick into gear completely and have the effect that I fear they will have on the SME sector and exporters in this country. How ready is the Government? I know we will conduct our negotiations through and with the European Union, but what happens at home?

I have listened carefully to debates here over the past few weeks, and in every one there has been criticism of one sector or another. What is holding us back? I would say bureaucracy is a dead weight in every single Department. It is a dead weight that is not allowing us, for example, to move Irish Water to where it should be in terms of our progress and development as a country. Local government is the same way. The administration is not dealing with local matters as it should, and it is causing difficulties at local level. Representatives of local radio stations were in Leinster House earlier to highlight the difficulties in their sector and ask for help.

The Mercosur and CETA deals have been mentioned. I would not like to see the Government doing a deal at any cost. There are issues with CETA and Mercosur which we need to be hard-nosed about if we are to save our agricultural sector and expand markets. This change in the world order in the area of trade must cause us to focus again on our trade with Taiwan and on the access through that country - a democracy - to the rest of Asia. We are surely not going to continue to be blinkered about what that country has to offer. It is never mentioned here. Its president is never congratulated on election, but Taiwan is a great democracy and offers so much if we would only engage. Watch what is happening in Europe. Taiwan is building the biggest computer chip factory in Germany, and we do not want to recognise it. We have to take off the blinkers, look beyond where we are today and start to understand when all of this change came about in the context of trade and trade agreements.

I also believe we need to look to the people we represent. The Government’s first obligation is to keep our people safe. While we do all of these preparatory works in Europe and engage with Washington and everywhere else, we need to look at home to see whether we can shake off the red tape and deal with the issues to make life a bit better for the people we represent and to ensure that we have plans in place to safeguard their quality of life if all of this should change our economic circumstances.

We had an opportunity in 2008 when the troika was here, but we did not introduce the reforms that were necessary beyond that date. We will now pay a price because the question will be asked as to how nimble and prepared we are as a country and how we will keep our people safe. There is so much going on in Ireland - we have heard it again here today in the debate – such as the children’s hospital and all sorts of issues with regard to the care of our people. We do not seem to be on the top of our game. We must look at home as well as abroad.

Mattie McGrath (Tipperary South, Independent)
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Bogfaidh muid ar ais go dtí Sinn Féin leis an Teachta Martin Kenny.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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The reality of what we see across the world in the past week or so is an act of self-sabotage by the American President on his own people. That is really the centre of all of this. At the end of it, we recognise that the trade barriers or the trade tariffs being put in place are going to damage the American economy and ordinary American citizens hugely. We all hope that will rebound back and bring a change in direction by the American Administration. The imposition of 20% tariffs by the US on EU exports, however, comes into effect today. It is damaging Ireland. It will damage Irish agriculture and our food and drinks industry. At the moment, Ireland exports almost one quarter of the butter we make in this country to America. Some 6% of cheese produced in Ireland goes to the US and more than €1 billion of Irish whiskey and other products in that industry go to the US. The tariffs, therefore, are going to have an impact, particularly on our dairy and whiskey industries in Ireland. One of those whiskey industries is the Shed Distillery in Drumshanbo in County Leitrim, which is the producer of the famous Drumshanbo Gunpowder Gin and other whiskey products. It is very worried about the amount of its product that is on its way to the US at the moment. It is not sure what is going to happen. There are real implications for all of this.

While the EU is not going to up the ante by imposing reciprocal tariffs on US dairy and whiskey, the fact remains that 20% tariffs on Irish dairy, whiskey and any other Irish food export to the US are in place as of today. Just because the EU has not decided to impose those tariffs does not mean Trump will not increase the tariffs further. It can happen even without Ireland or the EU putting any reciprocal tariffs in place.

The problem we have seen in the global markets in the past week is the uncertainty of what Trump will do next. Nobody knows what he is going to do. He has indicated that there will be more tariffs and has signalled the pharmaceutical sector over the past 24 hours. That would be hugely problematic in my area where we have some pharmaceutical and medical device companies. They are big employers and very important to the economy.

In documents published by the US Administration on barriers to international trade, one of the issues mentioned was the introduction of health warning labels on alcohol sold in Ireland. The Minister for Finance, Deputy Donohoe, announced at the weekend that he was considering scraping those health warnings. That is a difficult thing to understand. How can it be that something the Government told us was a priority and an important health initiative, and which had cross-party support in the Dáil, is something we should no longer do because the US Administration has said it does not like it?

Other issues raised by the US were a ban on American meat produced with growth hormones and our regulations when it comes to pesticides and fertilisers. The US also raised concern on delays in the EU approving genetically modified crops. We cannot let our animal welfare, food safety and agriculture regulations be used as a bargaining chip during negotiations on tariffs. The EU has probably the highest level of animal welfare and food safety standards in the world. As such, we produce products of the highest standard in the world. We already seen the EU agree to the importation of South American beef in the Mercosur trade deal, whose animal welfare standards are well below those of Irish farmers and farmers in the EU. This cannot be allowed to happen again.

It is concerning the Irish Government failed to attend a meeting of EU countries last week where concern and opposition were voiced to the Mercosur trade deal. So much for this Government standing up for the interests of Irish farmers. Hopefully, it will support the proposals inserting an emergency break into the Mercosur deal for agricultural imports, a mechanism that could be triggered to restrict imports to EU markets if EU markets are destabilised. It is concerning the Government failed to attend that meeting. I just hope it does not take the same lackadaisical attitude when it comes to standing up for Irish interests in negotiations on tariffs.

We all know tariffs are bad for business and the only way to ultimately resolve this is through negotiation and dialogue. The number one priority for Ireland is to protect the Irish economy and Irish jobs and to limit the damage and risk to our consumers. While tariffs will affect the economy here, we still need to continue to invest in our housing, healthcare, health services and infrastructure. The Government cannot use these tariffs and this global trade war as an excuse to abandon the necessary infrastructure promises that were made in the past.

Mattie McGrath (Tipperary South, Independent)
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Anois, we move onto the Independent and Parties Technical Group. Tá triúir Teachta Dála le labhairt, is iad sin ná Teachtaí Paul Murphy, Roderic O’Gorman agus Catherine Connolly. They are sharing time.

Paul Murphy (Dublin South West, Solidarity)
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While there is a lot of rhetoric in this debate about protecting workers, it is necessary to take the veil away from some of that rhetoric from the Government and some Opposition parties. Behind that veil, what they are really talking about is protecting the big US multinationals that have operations here, acting on the basis that big pharma and tech have the same interests as workers. That is simply not true. Look at Apple, which fought tooth and nail alongside our own Government to not pay us €14 billion in corporation tax it owed. Look at Pfizer which has been cutting jobs here long before the tariffs were threatened. Look at Twitter, now X, which fired 140 workers here by email just like Elon Musk is now doing for Trump. This is the moment to get out of our dependence on US multinational corporations. We have warned for years about the unsustainable model into which the Irish Government and Fianna Fáil and Fine Gael successively were digging us deeper and deeper. Those warnings were ignored. Their only concern is their bottom line and profits. They are not interested in jobs or wages and are certainly not interested in workers’ rights.

The same is true of Donald Trump. What did the pathetic, grovelling visit, which was hailed by much of the media as a diplomatic success, result in? Which tariffs did it avert? Which massive new tariffs on pharmaceuticals did it avert? It proves that pandering to him is a waste of time. There should be no acceptance at this moment to drive down health and safety, labour and environmental standards. That is clearly an offensive interest of Trump. There should no acceptance of the idea that the way out of this is to appease Trump by saying we are going to buy more liquefied natural gas, LNG, or more weapons, which will deepen the ecological crisis we are in. There should be no acceptance of a tax on workers’ living standards. People Before Profit’s only concern in this is to say “No” to attacks on workers’ living standards and health and safety standards. This is not our crisis and we should not be forced to pay for it.

The last time the Government forced us to bail out the banks, it imposed years of crippling austerity that destroyed living standards. The EU stood behind it all the way, threatening a bomb going off in Dublin in order to ensure that working people in Ireland paid more of the cost of the European banking crisis than anywhere else in Europe. History must not be allowed to repeat itself. Rather than bailing out US multinationals, the Government must be forced to bail out workers and protect living standards.

Between the Future Ireland Fund, the Infrastructure, Climate and Nature Fund, the Apple tax money and Exchequer surpluses, the Government is sitting on more than €25 billion. That money should be used to bail out workers and invest in a new economic model. The maximum rates of jobseeker’s pay-related benefit must be increased to ensure all affected workers can benefit from it and do not suffer large drops in their income.

In the event of layoffs by US multinationals and knock-on job losses in the wider economy, all workers must be protected, not just those who work for the multinationals. If US pharmaceutical companies say they want to leave, then instead of bailing them out, the Government should take that manufacturing into public ownership, using the skilled workforce that we now have, and direct it towards other markets. We also now need to invest in an alternative economic model based on quality, green public jobs. Ireland has a real opportunity to become a world leader in onshore and offshore renewable energy, including for export, via interconnectors.

Roderic O'Gorman (Dublin West, Green Party)
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This is a quote from Mario Draghi's report on European competitiveness, which was published last year:

In a world of stable geopolitics, we had no reason to be concerned about rising dependencies on countries we expected to remain our friends. But the foundations on which we built are now being shaken. The previous global paradigm is fading. The era of rapid world trade growth looks to have passed ...

[...]

... and our dependencies have turned out to be a vulnerabilities.

Recent events have rendered his words to be understated. Our position in Ireland and Europe in the past few weeks can, at very best, be described as "vulnerable". The world around us is now changing at a significant pace and those forces of change are not acting in our favour. Many of the assumptions we have relied upon to build our prosperity and fund our public services are suddenly at risk. It is tempting to look at this as a temporary shock that we will eventually move past, like Covid or the immediate impact of the Ukraine war. However, this assumes that once Donald Trump is gone from office, or his political capital is spent, that there is a business-as-usual model to which we can all return.

Of course most of us realise now that this is a fallacy. The world's largest economy has taken a sharp turn against the globalised trading world it created. That is the kind of fundamental economic break we have only seen a couple of times since the end of the Second World War. While we watch closely how this major shift plays out in American politics, in Ireland we must surely now have to face a painful reality. The open, transatlantic trading model on which we have built so much of our prosperity is being eroded at its very foundations. I do not say this to exaggerate or to be overly pessimistic. As has been mentioned before, fully one third of our total exports go to the United States. This is the highest proportion of any EU country and three times higher than the next highest exporter by share of total exports, which is Italy. The question we in Ireland need to be concerned with right now is this: if that trading model is being pulled out from under us, what are we going to replace it with? What will generate our future prosperity? What will pay for our future public services? What will allow us to invest in a climate transition? Although it is especially acute for us in Ireland, this is something every European government is focused on now. Together with the EU and neighbours like Britain and Norway, we must focus our efforts towards future prosperity. Together, as a union, we must take the extraordinary measures needed to harness our innovation and our productive capacity of directing the vast capital available in Europe towards supporting production in Europe. We need to do so in a way that decarbonises and digitalises our economy but also protects our core European ideals of progressive transfer of wealth to maintain a just society.

This is no small undertaking but now is not the time for insular thinking. At such a critical moment in our country, we all have a stake in what comes next. Today, I call on the Government to establish a new forum on our economic future. This forum would bring together politicians, social partners, experts, big exporters and leading Irish entrepreneurs to lead an informed public debate on what our economic model needs to look like in the decade to come. What are the opportunities to better integrate economically with our closest neighbours? How do we foster European innovation? How do we speed up achieving energy independence through renewable energy and how do we protect our social model throughout? I understand that the Government is doing what it can to mitigate the impact of the Trump tariffs, but we have to recognise that this is a moment of seismic economic change. Hoping we can ride this out and regain our current model in the next few months or years simply is not feasible. I ask the Government to consider this idea of a forum on our economic future.

Catherine Connolly (Galway West, Independent)
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I would like to pick up on the comment about seismic change that the previous speaker referred to. We were warned about this for a very long time. When climate change was declared as being real, we were told that the model of business as usual could not continue. We failed to take on that warning. Then we had Covid and we continued on with the same business model. Then, more than ten years ago, the Irish Fiscal Advisory Council told us we were too reliant on particular sectors and a small number of companies. We have had any amount of warnings. I am not here to say that, but the point remains that we were supposed to have had transformative action. We should never be in this position.

We are dealing with a dangerous - I could use many other adjectives but I will not - person who has the title of President of the United States. He is backing the genocide in Gaza. I will mention this every single time I stand up. The US is supplying all of the arms to perpetrate the genocide, while we stand idly by. This is the same man who has now started a trade war so that we are completely deflected from what is happening. Of course the Government has to take action and look at this, but we need long-term action. We need transformative action. We should never be in this position but we should learn from it, having failed to learn from Covid and climate change. We should diversify our economy. I see for the first time that Údarás na Gaeltachta recognises the need to diversify in the markets. It is now looking to Canada and elsewhere to sell its products. This should have been happening not just with an t-údarás, but with Enterprise Ireland and the IDA as well. We built up a reliance that is utterly unacceptable. Now that we have this crisis all over the world, we see Germany reigniting its economy through the arms industry. We see Ireland putting out what is known as preliminary market engagement exercise for drones or platforms, for ostensibly useful functions. Then it goes on to question whether they can be modified to seamlessly deliver a strike capability. They want the responses back to testing the market to see if that is possible.

Ireland's sale of dual-use products has increased by a factor of seven times, I think. The Minister of State knows this. I will work with the Government at any time if it will begin to say that we cannot go on with business as usual. It is simply not possible. Our planet is endangered. The clock has moved forward and we are now utterly reliant on an arms industry because the leaders of the European economy have utterly failed to behave in an intelligent manner. They have gone down roads that have not helped us - I mention Germany in particular - with the arms industry. We are doing all of this without having an action plan for business and human rights. I could be corrected on this but I think we have been more than five years without a human rights plan because we cannot get all of the Departments to co-operate on it. I welcome the setting up of the forum known as the consultative group on international trade policy. I do not think Údarás na Gaeltachta is part of this, even though it sends €150 million to North America in exports. I agree with what the previous speaker said about a forum but we need an urgent task force to diversify our economy and to have balanced regional development. We cannot even attempt to do that because we do not have basic infrastructure, like a sewage treatment plant in Carraroe or one on the east side of Galway city, one of the five cities destined to grow. We are going in one direction all the time to save industries, which we need to save at this point because we are utterly reliant on them, without a parallel approach that will help us to break our dependency.

Paula Butterly (Louth, Fine Gael)
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I welcome the opening statements by the Taoiseach and Ministers which recognise the threats faced by businesses and people at a global and national level. President Trump's "liberation day" did not come as a surprise to anybody. As the Minister for Finance outlined, deglobalisation has been under way for some time. One did not have to be a financial wizard to realise that the tariffs were simply not good news. Thanks to its strategic location, skilled labour force and cross-Border connections and links, County Louth is home to a diverse base of businesses. There is a blend of start-ups, established SMEs and international firms. Some 92% of businesses are SMEs which employ fewer than ten people, yet many are part of a complex supply chain, whose end product is exported across the globe. Over the past few days, I spoke to the managing director of Blueacre Technology.

This is a company that provides specialist components to the medical device industry. Its labour force is highly skilled as the company has invested significantly in upskilling and training its employees. As its CEO, Dr. David Gillen, pointed out, the company did not hang about for the last few weeks or for the announcement last week but tried to make changes to lessen the impact of any trade tariffs. It has been exploring other opportunities for some months, as it felt the trading relationship was about to change. It was changed forever last Friday when the company lost all its US orders. Dr. Gillen's main concern, however, is that should a tit-for-tat response deepen over a prolonged period, the company could be affected not only in the short term but it could permanently lose skilled staff.

The current situation is very fluid and the unpredictable nature of announcements from across the pond can leave the modelling of scenarios and even the implementation of solutions somewhat in flux. I welcome the news that we will continue to support and invest in our SMEs, but I urge that we are nimble in our response to their needs as they arise. Businesses and their employees face uncertainty. It is therefore our responsibility to reassure them and give them as much certainty in these uncharted times as is reasonably possible.

James Geoghegan (Dublin Bay South, Fine Gael)
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This is a very serious moment that deserves a very serious response. I listened very carefully to some of the Sinn Féin speakers earlier when they said what we need is better engagement with the United States and a beefing up of our diplomatic efforts. Does that mean Deputy Mary Lou McDonald will engage next year with the US Administration? When Sinn Féin talks about the all-island economy, does that mean the First Minister of Northern Ireland, purportedly a First Minister for all, is going to engage with the United States Administration?

What this Government is doing right now is engaging bilaterally. Yesterday, the Minister, Deputy Heydon, became the first agriculture minister in the whole of the European Union to engage with the Secretary of Agriculture in the United States. Right now, the Tánaiste, Deputy Simon Harris, is engaging with the Secretary of Commerce. He is one of the first European Union trade ministers to meet with him.

On Monday night, when I turned on my television I saw Deputy Doherty, the finance spokesperson for Sinn Féin, put it up to Mairead McGuinness, a former EU Commissioner. He asked if she was wearing the green jersey or the blue jersey. I urge Sinn Féin not to adopt this approach. In a moment of national crisis, Sinn Féin should not try to force Irish people to choose between Ireland or the European Union. We are the European Union - the Continent that is now standing proudly as a beacon for the rule of law and free trade, and for reducing trade barriers.

A previous speaker from Sinn Féin, Deputy Martin Kenny, spoke about the highest standards that the European Union has imposed upon animal welfare in terms of food production. That is who we are. The benefits we have from being a member of the European Union dramatically outweigh the benefits of taking a go-it-alone approach. We must remember that we are talking about a $1 trillion trading relationship between the European Union and the United States. Trading within the European Union gives access to 460 million consumers. This is not to be derided or sniffed at. It is not a battle. There is no battle between Ireland and the European Union. As the German Chancellor said yesterday, we need a common response from Europe. We cannot set up Ireland for a situation whereby if the European Union over-responds, we say "Aha, we told you. You were not on the green side, you were on the blue side." This is what the negotiation is about.

Europe does not want tariffs. It wants free trade. It is a beacon for free trade. That is why the European Union was established. We are going to stand proudly in favour of it. This country is going to engage diplomatically, bilaterally and with Europe. We are going to promote agreements that are a monument to free trade. I refer to the Canada free trade agreement that Sinn Féin and much of the Opposition opposed. These are the decisions that we are going to take as a country within the European Union. We are going to stand up for Europe and European citizens. Europeans right across the Continent are horrified at what is taking place in the United States. We are part of that. We are one of the global peoples who make up the European Union and who utterly reject the approach the United States is taking in a whole host of areas, including the rule of law and economically when it comes to trade barriers. Which side is Sinn Féin on? Is it on the side of the European Union or is it just on the side of opposition for opposition's sake, even in this moment of national crisis? What does Sinn Féin believe in and what interests does it serve? Does Sinn Féin serve the Irish people's interests first or its party's interests?

Tom Brabazon (Dublin Bay North, Fianna Fail)
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There is no justification for the tariffs being imposed, except to pull the wealth generation of multinational corporations from Ireland, Europe and other parts of the world back to the US. However, that does not recognise that these companies are in fact multinational by nature and by location, often having manufacturing, research and development, corporate headquarters, administration and tax bases in different places around the world, in many cases with good reason.

Ireland should be confident going forward that we have an excellent level of graduates, support trades and access to one of the largest markets in the world, the EU of 450 million people.

A number of multinational pharma companies operate in my constituency of Dublin Bay North. They offer reasonably good employment to a good number of employees. The infrastructure out of which some of them operate is extremely complex and it would probably not be either possible or desirable to move them stateside. To do so would mean losing the talented workforce and shipping plant from Europe to the United States. It would also mean losing out on access to the European market. In the meantime, there would be a significant increase in the cost of delivery of pharma products to the consumer, stateside. The increased cost to the average American citizen, with the devaluing of shares and stock prices, would have a devastating effect. There will no doubt be pushback by the American public against these tariffs when they feel the full force of their negative impact. We have already seen some of this pushback commence. This is another reason to be hopeful. A further reason to be hopeful is that corporate planners know that there are three years and nine months left in Donald Trump's presidency. By the time his term is up and he leaves office, a lot of transatlantic transfers will not have taken place. My hope is that corporate decision-makers might well knuckle down for the balance of the three years of tariffs and endeavour to ride out the storm on the basis that the tariffs may well be reversed by a more reasonable and sensible incoming president after President Trump.

The last time such an experiment took place on a global scale we had the Great Depression. It is not even 100 years later, and here we are on the precipice of repeating history again. I hope the existence of a bigger trading bloc in the EU will help to save us from the worst excesses of this economic foolishness. I am hopeful that we may be insulated from the worst parts of President Trump's tariffs.

Potentially, there are between 700 million and 1 billion people in countries around the world living below the poverty line who would find it desirable to migrate for economic reasons before the tariffs take effect. These countries will no doubt be plunged into a dreadful level of impoverishment, particularly in the southern hemisphere. The tariffs will swell the number of people who desire to move for economic reasons. President Trump may well have to build his famous wall to stem the tide of migration. Unless sense prevails, migrants may well be climbing over his wall and tunnelling under it. President Trump must be careful what he wishes for.

We, in Ireland, must hold the line and work with our European partners while wearing our blue and green jerseys. This is where I differ from my colleague who just spoke. We must aim to ride out the storm by fully co-operating with our European partners and availing of every opportunity to negotiate with President Trump's Administration. We cannot underestimate the problems with the world economy if there is no negotiation. We must ensure we use everything in our armoury to bring President Trump and his Administration to the table to discuss these matters.

5 o’clock

Our world is turbulent at present. It is a world in which we have war in the Middle East between Palestine and Israel, civil wars in Syria and Yemen and the war between Russia and Ukraine as well as war in other parts of the world. This could be the worst time ever to consider imposing tariffs which will further destabilise our global village. Tariffs are simply counterproductive. They disrupt deeply integrated transatlantic supply chains and put at risk the entire global economy and the welfare of citizens on both sides of the Atlantic and all around the globe. It is not too late for President Trump to do the right thing.

Conor McGuinness (Waterford, Sinn Fein)
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It is marvellous that we had several weeks of briefings from Government spokespeople and backbenchers about the need to fight and vindicate the right of Government backbenchers to be able to put questions and make statements. There is one in the Chamber at this moment. I hope the Cathaoirleach Gníomhach will give me a bit of extra time since the speaker from the Government backbenches who was to speak immediately prior to me did not bother to turn up.

I note also that Deputy Geoghegan gave an impassioned speech not so long ago asking questions of Sinn Féin about our positions. He has also left the Chamber and is not here to hear my response. I do not know that this is question time for the Opposition, but I will humour him if he is listening somewhere on the campus. Sinn Féin is unashamedly and unapologetically on the side of the Irish people and Irish interests and of vindicating the Irish economy. That is to answer any question and put anything beyond doubt. Where those interests coincide with the interests of the European Union, we will stand in solidarity with member states of the European Union, as they did with us during the Brexit negotiations. However, we will never forget either how Ireland was left out on a limb, our sovereignty was sold and our people were subjected to a decade of austerity to save the margins of European capital.

I will talk about the pharmaceutical sector in the brief time I have available to me. There was a sigh of relief last week when the pharmaceutical sector was seemingly exempted from the 20% tariffs on European exports, but I note that President Trump, in a speech late last night at an event in Washington, signalled that an announcement is imminent and that a major tariff will be announced on pharmaceutical imports. This is an act of self-sabotage by the US Administration. It will hurt its economy. The number one priority of the Government has to be to protect Irish interests and Irish jobs. This crisis exposes the failure by successive Governments from the time of austerity and before to address fundamental weaknesses in our economy. Decades of underinvestment have left us exposed and nowhere is that neglect more evident than in Waterford and the wider south east, where the Government's failure to deliver critical infrastructure and services has actively hindered our economic potential. We see this clearly in examples such as that of Waterford Airport. It is long past time that the Government invest in its essential runway extension. The Government has failed to provide funding of scale to upgrade the N25 which connects Waterford with Waterford port, Rosslare and Cork and we need to see more from IDA Ireland when it comes to visits to Waterford. Waterford is clearly at the bottom of the pecking order, way down the priority list-----

Mattie McGrath (Tipperary South, Independent)
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Go raibh maith agat.

Conor McGuinness (Waterford, Sinn Fein)
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-----when it comes to attention from IDA Ireland.

I reiterate the calls from my colleagues on the Sinn Féin side of the House, that we need to develop contingency plans-----

Mattie McGrath (Tipperary South, Independent)
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You are taking time from your colleague.

Conor McGuinness (Waterford, Sinn Fein)
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-----to protect our pharmaceutical sector and its workers.

Mark Ward (Dublin Mid West, Sinn Fein)
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I echo my colleague's comments about Deputy Geoghegan. I think he must have been under sponsorship to see how many times he could mention Sinn Féin in his three-minute speech. I think he made a few bob on that.

On all the talk we had about backbenchers demanding speaking time in the next while, not all the Government backbenchers turned up for this important debate. It is a case of the Government speaking out of both sides of its mouth. Fine Gael would want to get its own shop in order.

In times of economic uncertainty, the Government must stop wasting public money. Only today I received information about how the HSE has squandered €7 million of public money. I received a response from the HSE that reports it spent more than €7 million in prompt payment interest and compensation fees since 2022. These are fines the HSE received for not paying its bills on time, so basically €7 million flushed down the drain. I raised this in the Dáil in October and it appears that no action has been taken by the Government. It needs to act on this. The Minister for Health needs to put a system in place to stop the HSE haemorrhaging public money in this way. We have seen recruitment embargoes in the HSE and a lack of investment in vital treatment and this €7 million was wasted. It was not spent on anything. Public trust in Government spending is at an all-time low. While we worry about the impact of Trump's tariffs, which are irrational - it is difficult to talk rationale to an irrational mind - the Government needs to get its own shop in order first. Nothing about Trump's tariffs is justified. He just seems to want to get into the news cycle at every step.

A previous speaker spoke about Palestine. Trump is also funding a genocidal regime in Israel. We need to do everything possible to stand up to Trump. On the subject of going to America and talking to presidents, the disregard that Donald Trump showed our Taoiseach the last time was unheard of.

Paul Gogarty (Dublin Mid West, Independent)
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To continue from what I said earlier, if MAGA USA has a plan aside from Trump's ego and desire to exercise power, it could be that the tariff strategy is aimed at devaluing the dollar while also managing to retain it as the global reserve currency. I am not sure about that but it is a radical and risky strategy, if there is a strategy. It could equally be totally unintentional and be purely about reducing trade deficits and bringing jobs back, which is likely to happen quickly enough. However, if it is intentional and the dollar weakens too much, it could cause central banks around the world to diversify from holding dollars in their reserves. There could be a bit of bullying going on in the tariff bombast, trying to get a few countries to fall into line to suit US purposes, while ignoring others. Either way, Ireland needs to adapt.

I mentioned in my speech earlier today that it is likely there will continue to be a long-term shift towards a more isolationist stance in the US, irrespective of who is in the White House. Therefore, how we adapt will have real consequences for Ireland as a nation. It might not happen with one big drop-off in revenue or a sudden, catastrophic loss of jobs, but the trend will show in due course and we need to be ready. In my earlier contribution, I called for a special committee to be set up and I reiterate that. Input should be sought from various experts in their fields to help to formulate a paradigm shift in how we do business globally, albeit transitioning in an incremental way because we still have revenues coming in the old way. I also mentioned that it is a no-brainer to invest in and even borrow to achieve energy self-sufficiency.

I will now focus on diversification. The model of Ireland's dependence on a few operators in a handful of business sectors to generate a massive windfall has served us well. It has been criticised over many years but, in essence, we made hay while the sun was shining. Now we see the clouds and we still have an opportunity to diversify before the downpour. We should engage with sensible people in the US Administration who seek to mitigate the current policy. Many Republican Party elected representatives from export-dependent states might be worried right now. We need to hold up our noses and continue to keep channels open with the highest levels of the Trump Government. Of course, where that will go is another story. We also need to expand trade partnerships beyond traditional markets and develop existing ones outside the US and the equally risky China. There were some critics of the Canada-European Union Comprehensive Economic and Trade Agreement, but maybe we need to look at that great country as another English-speaking market with strong historical and cultural ties. Equally, I do not like the EU-Mercosur trade agreement but it might be forced upon us in some shape or form as part of the EU-wide trade agreement. We need to bite the bullet and come up with suggestions that will mutually benefit Irish and South American economies in a sustainable way.

From a food perspective, there is strong potential to sell to Middle Eastern countries that import most of their food. We also need to look at emerging Asian markets and examine meaningful and fair trade initiatives in Africa, our version of the Belt and Road initiative as part of an EU strategy perhaps but without the colonial hangover. We are in a good position as a European country because we were colonised. There is huge suspicion on the African continent about any European former colonial so-called masters coming in and trying to impose stuff. That is why there was openness towards China but, as with the Chinese, nothing comes for free. If we can get some kind of fair arrangement with Ireland at the forefront with our historical links to the religious orders, we should do so.

It is more complex than that. I am just talking a little bit off the top of my head here, but it is worth sticking all these ideas on the board because we need plenty of them. We need to provide practical supports to Irish jobs at risk and invest in our SMEs. I acknowledge that Enterprise Ireland has already built up a team to look at individual strategies for various companies. It is great to see. I could be wrong, but I think I read somewhere that up to 200 or 300 companies were being looked at in this context. We need to develop this approach in the longer term as we reorient for a more sustainable long-term pathway. By sustainable, I also mean in a climate-friendly way, using cutting-edge technology.

Last but not least, we need to invest in and develop our own innovations. We are years behind Scotland, Portugal and Denmark in terms of wave technology, as I said, but we can catch up and overtake those countries. Why can we not reorient and revitalise our potential as a data storage location by ensuring we have excess energy to export at all times and a back-up green hydrogen solution? Why can we not be at the forefront of green aerospace and shipping? We could be at the forefront of the revolution using electric cargo and electric short-haul planes, rather than letting other countries develop the technology. If not along with them, then maybe we could do this in partnership within the EU. In Weston in my constituency, for example, I heard there might be a trial of pilotless planes that have electric engines. Why can we not be the Irish version of Finland's Nokia, which was huge back in the day? Why can we not develop our own pharmaceutical capabilities and gain an intellectual advantage? Where are the next 20 great Irish inventions, for example? Perhaps we could even do what the Americans did during the Second World War and encourage some of the Irish Americans disillusioned with their fragile US democracy to come to Ireland and develop our own collaborative knowledge base within the EU. Out of every crisis comes an opportunity. Our current model will not end suddenly overnight, but it is unlikely to go back to the way it was before and so we need to start moving in new directions. Let us get some ideas together and try some strategies. Some might work, while others will not. We must collaborate. Let us think bigger.

Paul Lawless (Mayo, Aontú)
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Ireland is facing its biggest existential threat since the last economic recession. Ireland is the most exposed country in the European Union in terms of these tariffs. There is doubt that these will disproportionately impact Ireland. Without question, Ireland is in real danger here, yet the Government is suffering from inertia. It is incredible to think that Simon Harris is meeting Howard Lutnick today while the tariffs are in place. Surely this should have happened in advance. It is incredible that this is the first debate we have had on this issue. Aontú was the first party to bring a motion in this regard before the Dáil today. Despite this huge threat facing us, there are still no Oireachtas committees - no finance or trade committees - and despite it being four months after the general election.

This Government has a track record of outsourcing important issues to the European Union. We have seen politicians right across the Government who talk like bystanders on this matter. The European Union has a track record of ensuring that the big economies are looked after first. During the banking bailout, for example, Ireland paid 42% of the costs of the European banking crisis. Ireland had the highest per capita cost, at €9,000 per person, despite accounting for 1% of the population of Europe. The Mercosur deal is another example. The interests of German car manufacturers are being put ahead of the interests of Irish farmers, which will decimate the Irish economy in the west in particular. This will be the case in County Mayo and right across the western seaboard.

I wish to address another issue and some untruths spoken here today in the Chamber and circulated to the media in County Mayo. Aontú supports FDI. It is a good thing and should be nurtured and attracted. It is an integral part of the Irish economy. Without question, however, the Irish economy is incredibly reliant on the FDI sector. For example, corporation tax revenues accounted for 27% of our budget receipts last year. Of that corporate tax total, 40% was collected from ten companies. In a sense, then, ten chief financial officers are responsible for a huge proportion of the tax take in Ireland. There is no question but that the Irish economy is unbalanced. This is the truth. The comments made by the Minister of State, Deputy Alan Dillon, in response to our motion are, frankly, untrue. He can bury his head in the sand. He released a statement today suggesting we were criticising FDI as something liable to move. I mean talk about burying one's head in the sand. This is an existential crisis. It is time the Government stepped up to the plate and undertook proactive negotiations in connection with what is happening.

In reality, the Aontú perspective - we have spoken about this at length - is that this Government has rolled out the red carpet for FDI. This is what we also want to do for the companies in the indigenous SME sector, which are the backbone of the Irish economy. Right across County Mayo, businesses in town centres are closing. It is a major issue. It is critically important that we invest in and support the SME sector right across the country. It is also important that we develop our infrastructure. There are extensive infrastructural deficits in housing and transport, including there being no western rail corridor in County Mayo. We should be developing a road network and the western rail corridor across the west. We should also invest in renewable energy. County Mayo, for example, could be the hub of offshore renewable energy and solar panels in this country. I invite the Minister of State, Deputy Alan Dillon, to a debate on the topic on Midwest Radio or Castlebar Community Radio, for example, to discuss the importance of the tariff war to the economy of County Mayo and ensure we get the right balance. We could discuss all these issues. It is unfortunate that the Minister of State hides from debate in local media and, indeed, did so in pre-election debates too.

Noel Grealish (Galway West, Independent)
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I am delighted to have been given the opportunity to speak on this matter, especially in the context of my role as the Minister of State at the Department of Agriculture, Food and the Marine with special responsibility for new markets and food promotion. Ireland and the US have a significant and mutually beneficial economic relationship. Within this context, the US is a key market for the Irish agrifood trade. It is our second largest market after the UK, with exports valued at almost €2 billion last year. Our dairy and spirit drinks sectors, which together account for 80% of that figure of €2 billion in exports, are especially concerned at the introduction of the 20% tariff on their exports to the US. The US is an important market for Irish dairy exports, especially butter. It is the key export market for Irish whiskey and a significant user of Irish grain and Irish cream liqueur, of which milk is a major ingredient.

Regarding imports from the US, there are concerns that the US tariff approach may ultimately result in increased costs for certain categories of animal feed. My colleague, the Minister, Deputy Martin Heydon, is leading a trade mission to the US this week. He is travelling to Washington DC, Kentucky and Chicago. Yesterday, he had a good meeting with his counterpart, the United States Secretary of Agriculture, Brooke Rollins. I compliment the Minister because he has had serious meetings in Congress and with various leaders in the Republican and Democratic parties, which I think is crucially important. He will meet with US Government officials, state legislators, US business leaders and representatives of Irish companies with a significant footprint in the US economy. The Minister will discuss the direct benefits Irish food and drink companies are bringing to the US economy in terms of jobs and local inputs, which is to the benefit of US farmers and businesses. The trade mission and its follow-up will be a timely opportunity for Bord Bia and its client companies to have direct engagement with key US customers.

In relation to Northern Ireland, the agrifood sector has well-functioning and deeply integrated all-Ireland supply chains.

The Government will work closely with industry to ensure these linkages are not disrupted by the uncertainty created by the US announcements. The US tariffs, as announced, will have significant direct and indirect effects on the Irish food and drink sector and on the wider sector in the EU but every American family will also feel the effect of these tariffs in higher prices every time they go to the grocery store. I hope the US will soon come to the table for meaningful negotiations with the EU to avoid unnecessary damage to both our economies. Even today, within my Department, there was a high-level meeting between An Bord Bia, senior officials from the Department and a large company of food stakeholders who were meeting to see can look for new markets which is crucially important.

Edward Timmins (Wicklow, Fine Gael)
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We all know the huge benefit international trade has had on this country. On a finance basis alone, of the €97 billion we take in in taxes, more than €50 billion is attributable to our multinationals by way of corporation tax, VAT and PAYE. This supports all the services this State supplies, including health, social welfare and education. I often think this fact is lost on many people.

I wish to raise four specific issues relating to tariffs. First, I will put some context on the current effective tariffs. Second, I will discuss lessons from history on tariffs. Third, I will discuss what Ireland should do in relation to tariffs and, fourth, I will discuss our future international trade strategy.

The US economy is large but the EU economy is also large, being two thirds the size of the US one but equal in terms of purchasing power parity. Similarly, with China. The US does not dominate world trade in the same way it dominates, for example, defence. A 20% tariff on the EU has exactly the same effect as a devaluation of the US dollar by 20% as far as US consumers are concerned. Also, these tariffs are expected to raise approximately $400 billion. This is the equivalent of increasing average income tax on every American worker by about $2,000 per annum, not to mention the fact that the dollar has also weakened. History warns us against tariffs. They are a lose-lose approach to international trade. In 1930, the US introduced the Smoot-Hawley tariffs. This resulted in an average tariff of 60% on imports. Countries in the rest of the world retaliated and imposed their own tariffs. This led to deep division. The tariffs may not have caused the Great Depression which followed shortly after but it certainly contributed to it. It led to anti-Americanism around the world, for example, in Cuba, whose economy collapsed and that legacy remains to this day, 100 years later.

In high-income countries the average tariff on manufacturing goods is now just 1.8%, it is 5.5% on middle-income countries and 14% on low-income countries, so there is a correlation between wealth and low tariffs.

Ireland being part of the EU must do most of its negotiation with the EU but we must also use our unique connection to the US as part of these negotiations. The EU must support us in these efforts. We are more exposed than any other EU country.

Given the vast changing conditions in world trade, Ireland needs to react to these new conditions. For example, we should put emphasis on near-sourcing. This means increasing trade with our nearest neighbour, the UK, and with European countries. This policy also supports a lower carbon footprint in our international trade. Enterprise Ireland recently published its five year strategy. I welcome this strategy and it puts specific targets in place. To support this existing trade and grow future trade, we need to invest in infrastructure. If we do not invest, we will fall behind and stagnate.

Finally, regarding strategy, I urge a cautious approach in negotiations. At this point we should hesitate to retaliate. President Trump will want quick deals and not to have the negotiations drag out.

Erin McGreehan (Louth, Fianna Fail)
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We are in precarious times, as the Minister knows, and there is incredible uncertainty and uneasiness for anyone involved in business in this country. The new trade policy by the US has shaken the world and we need to adjust and adapt to this ever-changing landscape in which we are finding ourselves living. As we all have articulated today, as a country, we have enjoyed decades where global trade has increased, new markets have opened up and supply chains are being ever-more diverse and complex. Ireland is an example of how a globally interlinked economy can drive up growth for the betterment of us all. Unfortunately, with the US tariffs now in place we will absolutely suffer.

I am hugely concerned for our exporting business. A 20% blanket tariff on most goods will have a huge effect on Irish investment and on the wider economy. It represents a huge challenge for Irish exporters to the US across all sectors. I am already hearing from some who are seeing orders from the US slowing down or even drying up entirely, putting valuable skilled jobs at risk. I hear of rumours of companies going to a three-day week and there is more to come. We have yet to see the approach by the US and what it will do for the pharmaceuticals, semi-conductors and the other sectors excluded from the so-called reciprocal tariffs.

I am thinking of my constituents in County Louth and the impact it may have on the strong and vibrant economy we have in the county. Cooley Distillery and Teelings Distillery are distilleries selling the highest quality of whiskey that is enjoyed all over the world. The Irish Whiskey Association has said that these tariffs could bring devastating impacts to the spirits sector as the US represents 41% of Irish drinks exports every year with total value of the market calculated at €865 million annually. These are local jobs that have provided fantastic, long careers for many of my neighbours and friends in County Louth. These are ordinary people who will suffer at the hands of Trumps ideology. I am thinking also of one of our largest employers in County Louth, WuXi Biologics, a huge pharmaceutical company. When there is no certainty, it can hamper development and growth and prevent the establishment of the new companies.

There are loads of uncontrollables. I am asking the Minister to control the stuff we can control. Will the Minister expand and enhance what Enterprise Ireland is currently doing? Will he expand the eligibility criteria and enhance the level of funding to companies that want to export to new markets? I also ask that Enterprise Ireland would take the lead and support the small exporters who do not have that in-house capacity to do those things and who are now potentially in panic mode as they see orders reduce from the United States.

I ask that the Department expedite the work of the small business unit. As the Minister knows, larger employers in the local economy will drive the small business. It is hard enough to be a small business owner at the minute with the cost of doing business in this country, never mind with the external risks we have now because of the US tariffs placed on these businesses. Will the Minister respond to that in his closing speech?

James O'Connor (Cork East, Fianna Fail)
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In the context of the tariffs, I raise what we are doing here in Ireland and what we can control. So much of what is going on in the United States, no matter what Ireland says and no matter what Minister we dispatch to Washington, is not going to be able to reverse what the Trump White House intends to do. I was there a few weeks ago, and it was interesting. The Acting Chair was there and we got to see him in the flesh. They are very intent on what they are doing. Whether their ambition is to devalue the dollar or any number of other initiatives, it is going to do enormous harm.

I want to swing the conversation towards what is within our control. I am delighted to see the Minister for Enterprise, Tourism and Employment, Deputy Burke, is in the House. I also recognise the appointment of the Minister, Deputy Lawless, in the higher education and the innovation space. I would like to see the Government pursing what is in our new programme for Government regarding having a world-class entrepreneurship centre and hub in Ireland to harvest what we have on our own shores. There are several examples from Estonia, on what is being done in Scotland in the UK and on what is going on in relation to the French world-leading policy with STATION F. I have spoken with the Minister, Deputy Burke, on this. It is not about replicating what those countries are doing but it is about what Ireland can bring to the table and do it in our own way.

We are probably one of the most successful countries in the world at attracting in FDI. We also have a highly skilled young workforce who are committed to Ireland's future when it comes to development, entrepreneurship and innovation. I know so many young people of my own age - I am only 27 - and I see what they are doing and how committed they are but some of them leave. They go to San Francisco, to Paris and to other parts of the world when we could be doing it right here, only up the road in the IFSC and in other locations in the country where some extraordinarily exciting innovation is happening.

The Minister, Deputy Burke, is a young man at Cabinet and I can say with some confidence that he sees this opportunity. I have huge confidence in his ability to work on a cross-party basis to try to deliver our collective part for us. As backbench TDs, we are looking forward later today to presenting to our parliamentary party and to the Taoiseach on delivering an internationally visible statement of Ireland's commitment to innovation in the area of entrepreneurship.

It is something we must try to do more of to ensure Ireland, as a small country, does everything it can domestically to drive entrepreneurship, innovation and job creation on our shores, irrespective of the tariffs the United States is putting on the European Union.

Joe Neville (Kildare North, Fine Gael)
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"I believe in America" is the opening line of "The Godfather" movie and as the undertaker Bonasera said, I too believe in America. Brought up in a western European post-war world, many of us saw America as a beacon of prosperity and hope, a vision of opportunity. Over the years and through different US administrations, we have not always agreed with American presidents but we have broadly supported America.

In my lifetime, the culture and influences of American music and movies have not only pervaded our lives but our economy has been lifted by the great US corporate names of Intel, Facebook, LinkedIn, Pfizer, Apple and Microsoft. In my home town of Leixlip alone, I have seen at first hand the impact of Intel and Hewlett-Packard on the local and national economy. All of this to say that America has been a great friend of ours. I recognise that. Our history of emigration has ensured that many of the people in this Chamber have relatives in the US. Despite all of this, our relationship is in flux. We do not know where Ireland or Europe sits with this administration. Formerly friends, some European countries were allies of the US in past wars and its closest world trade partners but the US President's Administration treats EU nations in a way that does no befit previous relationships.

The concept of tariffs has never been positive. Blanket tariffs imposed without thought or structure can be catastrophic and can have dangerous, unintended consequences. Trade relations can be damaged and international relations realigned. This state of flux is dangerous, especially for a small open economy like ours. The Irish economy as structured needs a vibrant and international trade environment. If the world economic order continues to fluctuate, there are perilous waters ahead. Exports could be hit, investments could be paused and jobs could be lost. That is our reality. We must therefore keep cool heads and not overreact. We must work closely where we can with our EU trade partners and the USA for a resolution.

As I said, America has been a great ally to western Europe and despite the actions of one administration, it should remain so. We must not burn any bridges or speak any vitriol. We must remain measured and calm. Ireland has been governed well and is stable, so we can get through this economic shock. We must remain steady and poised, ready for what is coming but also hopeful for a new morning in America when this issue can be resolved.

Fionntán Ó Súilleabháin (Wicklow-Wexford, Sinn Fein)
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The economic model and approach of successive governments, whereby they put all our eggs in one basket, has today left us exposed and vulnerable. In Wicklow and Wexford, we certainly are as we have no fewer than nine pharmaceutical companies and our local struggling agricultural sector cannot afford any more cost increases.

Recent governments in this State failed to properly invest in infrastructure or, crucially, build up indigenous industries. Instead, we rushed headlong into becoming the 51st state of the Union. What direction do we take now? We need to play on our exceptionalism and mobilise the 44 million-strong Irish-American community. We must build cross-party alliances and use our influence to negotiate with the US to try to keep the tariff rates North and South at the same level. Strengthening links with the five BRICS economies is also crucial, as is outright rejection of the Mercosur deal. We need co-operation with our European friends. However, shooting the gun of retaliation to the Trump tariffs is not in Ireland's interest. Ireland is very exposed and we cannot win a trade war. This is a time for caution, rationality and restraint. Our priorities - exports of dairy and pharma and our connection to high-tech - are not those of the EU, nor of German car manufacturers.

It is timely at this time of year to remember the ideals of Easter week and start acting like a sovereign and independent state. First and foremost, the Government needs to safeguard Irish interests and adopt an all-Ireland approach. As I said, we are approaching Easter week and we remember the words of republican leader Liam Mellows who stood in this Chamber as a TD. His words more than a century ago, advocating for more economic sovereignty, were prophetic. As part of an lengthy contribution, he stated the following:

Ireland, if her industries and banks were controlled by foreign capital, would be at the mercy of every breeze that ruffled the surface of the world's money-markets. Ireland, therefore, must start with a clean slate. The Irish Republic is the People's Republic.

Instead of continually waving the blue and yellow flag, perhaps we should wave our own flag for a change and fight for the interests of the Irish people.

Ruairí Ó Murchú (Louth, Sinn Fein)
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While many of us have had many differences about multiple American administrations over many years, we recall fondly Bill Clinton's necessary involvement in the peace process in Ireland and much more beyond. We are well removed from that now.

We now have Donald Trump and his very simple formula. He took his country's trade deficit with each country and divided it by two. David McWilliams put it well when he said this would probably be a fail in ordinary level economics but it is no laughing matter. It is followed up by wonderful rhetoric such as the following:

I am telling you, these countries are calling us up, kissing my ass. They are dying to make a deal. "Please, please sir, make a deal. I'll do anything sir."

I saved Deputies a Donald Trump impersonation but everyone has probably heard it. It is absolutely frightening. We are talking about somebody who is being led by the nose, economically, by Peter Navarro. Even Elon Musk, who is not someone I would generally agree with, seems to believe this Trump adviser is a moron.

Donald Trump continues on like a 17th century king or feudal lord. We all know he has a cohort of billionaires around him. We assume at some level that sense will prevail when these billionaires are hurting. It is absolutely necessary we engage from an Irish perspective and Sinn Féin will make no apologies for supporting Irish interests. I accept we will be working alongside the European Union because that is necessary. The EU showed solidarity with us during Brexit but, as Deputy McGuinness pointed out, we also had to deal with austerity to save Germany and its banks.

We must engage and we need cool heads. I am going to give the Minister correspondence from a medtech company mentioned earlier. I raised earlier the supports the company needs because of the issue it is having as a result of purchases from the US being cancelled. There is a fear of business being lost in the future and a bigger fear of losing a particular cohort of workers with great skill sets. We need to look at direct supports and we need every level of engagement. I will talk to the Minister later on this.

Barry Heneghan (Dublin Bay North, Independent)
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I strongly condemn the decision by President Trump to impose 20% tariffs on EU exports, especially those that affect Ireland. Let us be clear here: this is not a negotiating tactic but an act of economic aggression by President Trump against our long-standing relationship. Let us call it what it is; it is reckless and short-sighted and will be deeply harmful to Irish jobs and businesses and the broader European economy. These tariffs will strike at the heart of our global economic model. This can already be seen in the stock market.

Ireland is heavily reliant on trade with the United States and the continued presence of US multinationals operating in our country. We all know the budget surplus did not appear out of thin air. It was built on decades of US investment, tax contributions and deep integration into the global trading system which, until now, we believed to be stable. I heard Deputy Paul Lawless mention this issue earlier and I support his view that we need to remove that dependence. If we can remove our dependence and destabilise this relationship, it would be good for stabilising our economy.

This is just a storm on the horizon. Tomorrow, I will be speaking more in depth on the long-term economic picture but today we are talking about tariffs.

In five years' time we are going to be talking about EU climate fines and how we are going to fail to meet our emissions targets. I urge us to look down through the barrel at what the situation will be five or ten years from now. We must diversify our economy and future-proof our strategy. I welcome Deputy Gogarty's remarks about our potential for green hydrogen and offshore renewable energy. I have spoken about this before. It is something we really need to do. I will speak about it more tomorrow.

I welcome the Government's continued engagement with the European Commission and our EU partners. We must remain united, strategic and calm but never passive. When the Tánaiste comes back I will be encouraged to hear how he got on in those negotiations. Ireland needs to take a leadership role in pushing for a renewed US trade dialogue. Here at home, we need to plan seriously to support Irish businesses most at risk. Whatever our historical relationship might have been, that is not the case with the current US Administration. This is a moment for leadership, not isolation. I look forward, as I have said, to the Tánaiste's response on his return.

I urge us to continue to look for and foster open, fair trade across continents. It is not too late to change course and I urge President Trump to do just that.

Carol Nolan (Offaly, Independent)
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The tariff trauma has begun. Even if our industries, particularly our pharmaceutical and agri-export sectors, can escape the worst of the challenges that arise, there is no doubt that we are in for a sustained period of economic uncertainty that is going to send chills through tens of thousands of households in this State.

However, I want to state clearly that we have, in effect, squandered the last four years in terms of shoring up our own indigenous sectors. The previous Government was worse than any Trump Administration or initiative when it came to burning turf, for example, or the inexcusable delay in making sure we have energy security and independence through LNG. The Green Party Deputy and some Government Members may well stand up here today and condemn President Trump for the harm he may be doing. However, I would remind them that we have been effectively held hostage to a crippling green policy and mandate for the past four years that has levied cost after cost on farmers and will take billions of euro out of our economy in the form of regressive carbon taxes which I have always opposed.

The Government may speak of controlling what we can control in response to the tariff regime but I remind the Government that we have a terrible record of handing control on a wide range of issues to an unaccountable EU bureaucracy that is vehemently hostile to President Trump. As Michael McNamara MEP recently confirmed, the EU has been at war with ordinary workers since before Donald Trump. It cannot now present itself as their champion with any degree of credibility.

Mattie McGrath (Tipperary South, Independent)
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I too am concerned about tariffs as there are more than 9,000 FDI jobs in Clonmel and thousands more of them in Dungarvan up the road from me. However, like Deputy Nolan, I too am concerned about the tariffs that our own Government has imposed on the ordinary people, such as the punitive carbon tax and the nearly 48% tax applied to anyone wanting to build a new home. I am talking about people building a home for themselves, not looking for houses from the State. The Government has taken punitive measures.

As for the bailout, I called it at the time and voted against it. It was a clean out when we had the crash and the EU charged us 6% interest yet the German and French bondholders were let off scot-free. We got money that time from the IMF at 2.9% interest. They are now supposed to be our friends. We the had the Fine Gael Party and the Tánaiste, who was Taoiseach at the time, meddling in the US election by describing one of the candidates, now-President Trump, as a gowl. God only knows. Another morning, he tweeted a photo of a baseball cap endorsing Kamala Harris which he got that morning in the post. That is such juvenile, pedantic and silly behaviour. Then some bright spark sent him over today to meet the US Secretary of Commerce. I was over there for St. Patrick's week at the time the Taoiseach was there. I met many Irish-Americans who were aghast at the way we had behaved. I met Pam Bondi, RFK Jr. and many other Congressmen and people. They were aghast, as were the voters among the Irish diaspora.

Here we are now stifling and crippling small businesses with bureaucracy on a daily basis. I thanks Deputy Nolan, who found out a couple years ago that we have 36,000 NGOs that are in front of the Government, behind the Government, tripping the Government and costing more than €6 billion a year. The sooner we get a wake-up call with tariffs and start to deal with the waste, the opulence and the naked, shameless way that these NGOs are milking our taxpayers, the better. There is also the fact that so much waste in government has been going on under successive Governments. We banned the turf. We have the farmers nearly put out of business with different issues supposedly from the EU. It is time we looked after small businesses and our small- and medium-sized farmers. Ní neart go cur le chéile. We should not allow the ranchers. We do not have any policy on wind turbines and solar panels. The best of land is being gobbled up and used. What are we going to do? We must look after our own house first and then we can work with the American people and the US Administration. They have been good to us always and we have those jobs here. I believe we can negotiate with President Trump and his team, rather than attacking him like the parties here are. Sinn Féin would not even go to America. I am wondering whether it was invited at all this year. That is a nice way to do business - abstention. It is used to abstention. It is time we got our house in order, looked after ourselves and kept the juvenile Tánaiste at home. We should put him in the dressing room somewhere rather than having him going out on our behalf after the insults he put on President Trump during the US presidential election campaign.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputies for their engagement this afternoon. It is abundantly clear from today's debates that we are living through precarious times, with unprecedented threats to the international trading environment and resulting impacts on relations with trading partners, on the Irish economy and of course on Irish businesses. Deputies have raised a number of recurring themes throughout the interventions today and these are questions about the possibility of a global recession, concerns for the future of the multilateral trading system, fears about sectoral vulnerabilities and legitimate anxiety about what these developments might mean for jobs, investment and growth.

There is no doubt that the introduction of tariffs by the US Administration on imports from the EU presents a significant economic challenge for Ireland. It is because of these threats that we must work to protect the gains we have made as a country firmly embedded in the rules-based multilateral trading system. The Minister, Deputy Donohoe, highlighted this in his opening remarks. We remain committed to the principles of free and open trade by which we have underpinned our economic success. Open trade brings undoubted economic opportunities, creates well-paid jobs and fosters innovation. It builds economic resilience. Today we discussed different ways to respond to the threats we are facing. It is the Government's firm belief that any response from the EU to the US tariffs should be fair and proportionate and should carefully consider impacts on Ireland.

This afternoon the European Commission will seek agreement of EU member states to impose countermeasures related to US steel and aluminium tariffs. We understand that spirit and dairy products have been removed from the list of EU countermeasures. This is welcome. The Government had conveyed our sensitivities in this regard to the European Commission. An escalation in trade tensions would be to the detriment of both the EU and US economies. The EU remains dedicated to fostering a stable, balanced and predictable economic partnership with the US and I believe this will be evident in its response. The EU-US trade and investment relationship is the biggest in the world. More than €4.2 billion of goods and services are traded between the EU and the US daily. This deeply integrated relationship supports millions of jobs on both sides of the Atlantic and it is crucial to strengthen this partnership, not disrupt it with tariffs that risk diverting trade, increasing inflation and causing significant economic harm. Increased protectionism is not beneficial for citizens or businesses.

The Government appreciates that this is a very worrying time for many businesses, particularly those with goods at sea, with the ultimate impact of the US decision to impose tariffs on imports from the EU remaining unclear. However, we have received an update with regard to the grace period for shipments. A US Customs and Border Protection notification has advised me that there is a 51-day grace period for cargo loaded onto vessels or planes and in transit to the US before 12 o'clock on Saturday, 5 April.

These cargos need to arrive by 12 a.m. on 27 May to avoid 20% duty.

The Government is working along two main streams in terms of the response to support firms amid these challenges. First, we are working to put in place a suite of immediate supports to advise firms. This will be followed by an action plan on competitiveness and productivity. I have instructed my officials that I want this plan to be finalised and published as soon as is practicable.

I emphasise that Ireland remains an attractive location for firms internationally to locate and do business in. IDA Ireland continues to support existing clients here while also attracting new inward investment, emphasising our talent base and strong institutions, which create significant investment here. Last week, I was in Datavant in Galway. This company has selected Galway as the location for its global development centre, bringing with it 125 high-quality jobs. Continued investment like this demonstrates that Ireland remains an attractive location for businesses.

My Department is working with our dedicated agencies to support Irish businesses. Enterprise Ireland has established a bespoke team that is engaging with SMEs, supporting businesses around tariffs and mitigation measures as well as offering advice and support on diversification measures. One-to-one meetings have been held with over 300 companies exporting to the US, with further meetings planned. We continue to urge all businesses exporting to the US to engage directly with Enterprise Ireland.

Market diversification remains a key priority, as it has been for decades. It has seen significant success. Enterprise Ireland has 42 overseas offices, with specialist staff in place to grow businesses and explore new opportunities. A total of 190 overseas market advisers are employed by the Government through Enterprise Ireland, of which 156 are outside the US.

The Government does not underestimate the challenge of tariffs with regard to a significant export market like the US. However, there remain significant opportunities for Irish firms in other overseas markets. Enterprise Ireland is actively assisting firms with diversification efforts. It has set up a dedicated unit to engage with and advise Irish SMEs involved in trading with the US, with over 300 one-to-one meetings held in the past fortnight alone and further webinars scheduled. We also have dedicated schemes and grants, including a strategic consultancy grant for expert advice. A market discovery fund is already open and will be topped up when demand is met. I will also proactively engage with businesses to make them aware of these supports and to ensure they are accessed at scale. An expansive trade mission programme plan is in place. The ever-evolving situation will be closely monitored. The Government will not be found wanting when it comes to resourcing and supporting Irish SMEs, which are the backbone of our economy.

Alongside these measures, and given the rapidly changing international economic environment, I propose to accelerate the timeline to agree a new action plan on competitiveness and productivity. The action plan will be finalised soon and is supported by formal consultations with Ministers and stakeholder engagement led by the Department of Enterprise, Tourism and Employment and underpinned by research and analysis.

I am determined to drive this process forward and ensure we have a comprehensive plan that pulls together supports from across government. There are a number of areas where we can take action and I want to see real movement on these before the summer. This will send a very strong signal to the enterprise sector here and abroad that we are very serious about bolstering our global competitiveness. We know we are the most competitive economy in the eurozone and ranked fourth out of 67 countries measured by the IMD world competitiveness ranking but we can never afford to be complacent and must strive where we are lagging behind our competitors. Competitiveness is of particular importance when we face economic challenges. The success of the Irish economy over the past number of decades and since the last recession reflects the strength of our highly skilled labour force. These factors do not change overnight despite the introduction of tariffs. In this environment, we must look to and trust in our competitiveness strengths to succeed. The Government will continue to invest in areas that have delivered our success while also seeking to address our weaknesses. We can do better. Specifically, the area of efficient and timely infrastructure delivery is one in which we have much work to do. The focus of the plan will be on matters within our national control by way of policy changes that make the Irish economy more competitive and resilient to economic shocks. Emphasis will be placed on concrete and actionable recommendations that Departments and agencies can implement over the next 12 months.

During these testing times, it is important that we use opportunities such as today's debate to take stock. Yes, we are facing mounting international trade challenges. Yes, there are risks to the Irish economy, Irish workers and businesses. However, we have also heard today about the resilience and innovation of Irish businesses, opportunities for market diversification and tools and supports in place to enable Irish workers and businesses to adapt and pivot as needed through the challenges ahead. We are not alone in this. We are part of the EU, which stands together in defence of fair trade. We are in contact with like-minded partners and supporters of the multilateral trading system from which we derive so much value. We are engaged with the US Administration to emphasise the importance of our mutually beneficial trading relationship. The Government will continue to speak up for Irish workers and businesses, defend the integrity of our supply chains and push for a trading system that is fair, transparent and just. We will focus on leveraging our competitive strengths while bolstering areas that will open up new opportunities in a challenging economic landscape. Working together, we can emerge from this period stronger, more agile, more competitive and more resilient.