Barry Heneghan (Dublin Bay North, Independent)
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31. To ask the Minister for Finance the preparations his Department has undertaken to protect the Irish economy from potential US tariffs, specifically those that target the pharmaceutical industry. [16085/25]

Aindrias Moynihan (Cork North-West, Fianna Fail)
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51. To ask the Minister for Finance the action he is taking on his report on the potential macroeconomic effects on the Irish economy; and if he will make a statement on the matter. [16162/25]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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86. To ask the Minister for Finance his plans to address potential economic and financial issues due to US multinationals and FDI leaving Ireland as a result of transatlantic trade war; and if he is considering any emergency measures to minimise the impact of US policy and multinational corporation influence on the Irish economy; and if he will make a statement on the matter. [16063/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 31, 51 and 86 together.

It is important to stress at the outset - we regret the imposition of any tariffs. The Government's view is that they create economic disruption and drive inflation, hurting all sides. Nonetheless, the reality is that we have entered into a period of significant disruption to trade due to tariffs that will, unfortunately, now directly impact on Irish exports.

Let me firstly say that these tariffs have only just been announced, with much speculation around their scope, timing and scale in the run up to the announcement. We will continue to work with the urgency that is necessary to assess how the specific announcements will impact various sectors across the Irish economy. Indeed, we have been in close contact with companies in export-intensive sectors over the past number of weeks, and we will continue to do so.

The Deputy will also be aware that the Tánaiste and I have been engaged in extensive discussions at both EU and euro area levels to put forward our views on the next steps for the trading bloc in relation to the appropriate response. It is important that we do not rush into any decisions in this regard, and that we take time to analyse the potential impacts of any potential counter-measures. Government will also engage with our US counterparts.

Ultimately, most effective way to minimise impacts on the worst-impacted sectors is to focus on remaining a competitive economy in which to do business. In other words, we must focus on controlling the ‘controllables’. My main aim - and the aim of this Government - is to ensure that Ireland remains a business-friendly and dynamic environment to attract inward investment, to grow and scale up indigenous investment, and to live and work.

It should be noted that widespread tariffs are just the latest tool used in the ongoing trend toward de-globalisation, a consideration that this Government has had at the centre of its policy agenda for some time now.

Specifically, the necessary actions we have outlined and are putting in place include addressing the major infrastructural bottlenecks in key strategic areas – energy, water, housing and transport. These are key factors necessary to encourage domestic and foreign direct investment. Investing in education, skills and training will also be key to maintaining the quality of our workforce. We must also continue to pursue a prudent approach to managing the public finances.

I am confident that if we follow such a path, Ireland will continue to remain an attractive location for both foreign and domestic investment.

Finally, this potential large shock to the Irish economy and to our public finances highlights the importance of running budgetary surpluses over the past few years – in other words, to prepare for a ‘rainy day’. The shock also demonstrates the Governments foresight in establishing the Infrastructure, Climate and Nature Fund, the objective of which is to provide funding for capital projects in the event of a shock to the economy.

Joe Neville (Kildare North, Fine Gael)
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32. To ask the Minister for Finance the engagement he has had with the Minister with responsibility for trade with regard to potential tariffs on Irish goods; and if he will make a statement on the matter. [15714/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I would like to re-assure the Deputy that I have been in close and frequent contact with the Tánaiste and Minister for Foreign Affairs and Trade. This engagement has included ongoing discussions both at Cabinet level and at the Trade Forum on inter alia how we can assess the likely impacts of tariffs on Irish exports. Cross-government engagement will be key to bringing together the various strands of analysis and research as we move forward. The initial analysis, carried out between my Department and the ESRI has provided a first glimpse into the potential impacts of tariffs under a range of scenarios.

The analysis shows that Modified Domestic Demand – the most meaningful metric for the Irish economy – would be between 1-2 per cent below its no-tariff baseline level over the medium-term depending on the extent of tariffs. This would be accompanied by lower-than-assumed employment growth, which is expected to be 2 to 3 per cent lower. Importantly, however, the paper does not account for changes to the firm- and sector-specific factors that have produced ‘windfall’ corporation tax receipts in recent years, and the impact on future investment decisions is also not fully captured in the model.

The Deputy will also be aware that the Tánaiste and I have been engaged in extensive discussions at both EU and euro area levels to put forward our views on the next steps for the trading bloc in relation to the appropriate response. It is important that we do not rush into any decisions in this regard, and that we take time to analyse the potential impacts of any potential counter-measures. Government is currently engaging with our US counterparts and will continue to do so.