Aubrey McCarthy (Independent)

I thank the Minister for being here. I will have to speak fast. When I heard about the 50% tariff threat, I was googling and I came across President Ronald Reagan’s warning on tariffs, how they affect the economy and how, while it may seem patriotic in the early stages and designed to protect industries, history has taught us it carries a steep, long-term cost. High tariffs bring about complacency for home industries and stifle innovation. Businesses grow dependent on the artificial barriers. In the meantime, foreign nations like ourselves retaliate and there is a big trade war, the result of which is markets contract, costs rise and jobs vanish. That has been a pattern since the 1930s. For Ireland as well as Europe, it is a hugely difficult time because we are a small, open economy and 80% of our output is destined for export. Millions of jobs across Europe and many in Ireland rely on the stable, rules-based economy the Minister talked about. As a small, open economy I fully support what the Minister said about a measured response. We must resist the short-term provocations, which seem to be a threat and then they back down and we threaten again. It is all about diplomacy here. History reminds us once again that, as Reagan said, protectionism will lead to higher consumer costs and job losses. The threat of a 50% tariff is not a negotiation tactic. It is like a grenade thrown into the room to get our attention. I agree with the Minister, Deputy Donohoe, that we need to stand firm, not to be reactive, to be measured but not passive. Then Ireland and the EU can be seen as voices of reason in this trade war. Let us have rules-based trade.