Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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167. To ask the Minister for Foreign Affairs and Trade for an update on Ireland's engagements with the EU regarding draft reciprocal trade tariffs. [27401/25]

Ruairí Ó Murchú (Louth, Sinn Fein)
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We have seen further highly provocative statements by the US President. Some of this is calculated, I have to assume, to spook and bully. We have obviously seen an element of a timeline further down the line with regard to us facing tariffs but it seems, unfortunately, we cannot dismiss them. What is the latest position with respect to engagement with the EU on countertariffs?

Simon Harris (Wicklow, Fine Gael)
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Ireland’s consistent position remains that we need substantive, calm, measured and comprehensive dialogue with the United States. I am pleased to say this is also the position of the European Union, which has shared a constructive proposal for scoping out a negotiation between the two sides. At the same time, we understand the need for the EU to undertake further internal preparations in case negotiations are unsuccessful. This often gets misrepresented. The European Union does not want to see tariffs or trade barriers. In many areas, we are offering zero for zero in terms of tariffs but we would be pretty darn foolish to go into negotiations without negotiating from a position of strength. We have to have a backup plan and do preparatory work if the United States continues to wish to harm our economic interests. This is a sensible and measured approach.

It should be remembered that to date, the EU has not imposed any tariffs on the US while EU and Irish exporters are subjected today to 10% tariffs on exports. We have shown extraordinary restraint in the face of great provocation. We must also be upfront in that there are still risks of further sectoral tariffs, including due to the section 232 investigations on pharmaceuticals, semiconductors, and now aircraft and aircraft parts.

On 8 May, the European Commission published its draft list of proposed rebalancing measures against the US. The list concerns imports from the US to the EU worth around €95 billion. It covers a broad range of industrial and agricultural products. In addition to the list of proposed rebalancing measures, the Commission published a much shorter list of EU goods exported to the US, and public consultation is currently open for comment until 10 June.

Since this dispute began, I have been in frequent communication with Commissioner Maroš Šefčovič and I recently met with the Commissioner and fellow trade ministers at an EU Trade Council meeting in Brussels on 15 May. My officials and I are also engaging with business stakeholders to understand potential impacts, including through the Government trade forum, which I chair. We will continue to convey these to the European Commission and urge stakeholders to participate in the EU’s public consultation directly.

Our message is clear: the EU is ready to move forward. We urge the US to engage rapidly and to reach a fair and timely solution.

Ruairí Ó Murchú (Louth, Sinn Fein)
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We all get the idea - tariffs and trade wars are bad for all concerned. What has been proposed by the President of the United States could fold a huge level of world trade. It would not be beneficial to America, Ireland or the European Union and would have a huge impact on the global economy, none of it good. I do not think anyone has come up with a way to win a trade war.

I agree that we need cooler heads to prevail but a large number of people work in the multinational sector. Some of those sectors invested in the US market, and they will be very concerned. My primary question relates to the EU's response. Could we get more of an update on what this retaliatory package would look like? We all welcome that areas such as pharma and dairy would not be included. I accept that the European Union, like any other outfit, is going to come up with something that would impact America. We would obviously like to protect whiskey businesses and whatever, but when we are talking about 50% tariffs, there is not going to be a whole pile of protection for everybody. We just hope that it is more bluster than it is reality.

Simon Harris (Wicklow, Fine Gael)
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I think the Deputy is right and I also hope that is what it is. I learned a long time ago not to respond to every Truth Social post or every tweet. We need to be calm and substantive in our engagement here. I welcome that President von der Leyen and President Trump spoke on the phone the other evening. That provided more of a window of space for engagement. I welcome that engagement.

I also note the federal court ruling in the US that some of the tariffs imposed by the US Administration exceed President Trump's authority and that the US Administration is now appealing this ruling, so much uncertainty remains. A number of points remain unclear but what is very clear is that the European Union and Ireland will continue to do everything possible to reach a negotiated, mutually beneficial agreement with the US.

The Deputy is right, though. If we get into a situation where tariffs become the norm, that would be extraordinarily worrying. Even 10% tariffs on certain sectors of our economy and other economies in the European Union would have a real and very negative impact. We are working on this around the clock. We need to keep on pushing for a negotiated solution. We will work with the Opposition and keep it briefed, as we have done, as these negotiations progress.

Ruairí Ó Murchú (Louth, Sinn Fein)
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I will accept that there will not be clarity on the question of what exactly the package is going to look like. I have no doubt about that but I will ask the question. We are making the case for those sectors we would like to protect but every other state in the European Union is making the same arguments. It is necessary that we represent Irish views, needs and wants.

We also have to deal with the fact that we have to build up our indigenous sector. We know the issues as regards the failure to invest in infrastructure and, some would say, our excessive reliance on tax incentives. It is vital that we engage with the EU on key products and exports, that we explore new markets, develop supports for jobs in sectors under threat and tackle energy costs that are undermining our business and competitiveness. We know the issue that exists with respect to housing - the Tánaiste hears it from ISME, IBEC and others - and then investing in our infrastructure. Will the Tánaiste give an outline of the state of play regarding preparations for supports for businesses and diversification and any engagements there are with those sectors, particularly medtech and pharma, as well as others we believe will be impacted?

Simon Harris (Wicklow, Fine Gael)
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First, on what the countertariff measures might look like, it is open to consultation until 10 June. The Government will make its views known. It is also open to every sector and person to make a submission, and we are encouraging people to do that. What we saw the last time we engaged on this was that we actually made some progress in removing some items from the list of retaliatory measures that were of particular concern to our economy, farmers and drinks industry.

Pharma is an area of major concern. I met with all the pharma companies recently through the Irish Pharmaceutical Healthcare Association. Similarly, I met the medtech and aircraft leasing industries recently. At our Government trade forum, we are diving into different sectors of the economy at each meeting as well. The Deputy is right, though, as regards controlling what we can control.

On market diversification, the Minister, Deputy Burke, and I will bring forward a new plan on that issue within the next month but I got Government approval to progress the ratification of CETA, the trade agreement with Canada, this week as an example of market diversification. In July, the Minister, Deputy Burke, will also bring forward a competitiveness plan as to how we support small and medium enterprises.