Calls for government supports for firms impacted by US tariffs

There have been calls for government to make supports available for businesses adversely impacted by US tariffs.

US President Donald Trump has imposed 20% tariffs on all imports from the EU, which will hit Irish exports.

Labour TD Duncan Smith told the Dail that it must focus on helping workers in Irish firms preparing for the threat of job displacement in vulnerable sectors.

Mr Smith called for a new short-term wage subsidy scheme.

“(It) would keep workers in their jobs in order to retain skills and employment in exposed parts of the economy during what will be a tumultuous period,” Mr Smith told the Dail.

“We have been calling for this since the pandemic and the money to fund this scheme can be found in the Social Insurance Fund and the National Training Fund, both of which are in substantial surplus.”

Meanwhile, Sinn Fein TD Pearse Doherty, the party’s finance spokesman, called for an early assessment of the impact of the tariffs on the Irish economy, saying it needed to be sector specific.

“We need to see urgency and contingency planning, making sure supports for industry and workers are ready to go if and when they are needed,” Mr Doherty added.

“We need to actively look at how we de-risk the economy and mitigate the impact of these tariffs. The fact pharma hasn’t been hit with these tariffs buys us a little time.

“But the reality is we don’t know how much.

“Tanaiste, now there are serious issues also in relation to the all-Ireland economy, now that we have two different tariff rates on this small island of ours, and potentially two different responses to those rates.

“I’ve been in contact with my party colleague, the minister for the economy in the north and I’m asking that your government here work very closely, hand in glove and in lockstep with your counterparts in the assembly.

“The first step to that would be to convene the North-South Ministerial Council without delay.”

He said it was a time for “cools head” and urged the Government to “take a breath” and look at all the available options.

Tanaiste Simon Harris said the actions of the US president on Wednesday night were “deeply regrettable”.

He added: “It seemed absolutely clear, particularly in recent days, that President Trump was determined to have this moment, what I described as a moment of chaos in terms of an announcement of tariffs. The biggest change in terms of trading approach in probably a century.

“He’s had that moment now, and what now needs to happen is negotiation.

“If I’m to try and find some glimmer of hope in a very dark and grim situation, it is that there were references to negotiations both by the president last night, the commerce secretary, whom I spoke to last week, the treasury secretary, and in the actual executive orders signed by the US president.

“That’s what needs to happen. And there needs to be calm, measured, strategic consideration and this is the approach Ireland will take.”

Mr Harris said the Government would carry out an early assessment on the impact of the tariffs.

He said he had convened the Government’s trade forum to meet on Friday.

“This involves business representative bodies and will be an opportunity to take stock,” he said.

“Regarding competitiveness and controlling what we can control, I have asked the Minister for Enterprise, Tourism and Employment (Peter Burke) to bring forward proposals to the Cabinet Committee on the Economy, which I chair next Thursday, in terms of what we can accelerate in the programme for government around our economy, competitiveness and productivity.”

Mr Smith also told the Dail that the US could no longer be trusted as an “economic ally”.

“The president accused states, both friends and foe, of essential fiscal grand larceny with no basis for these claims,” Mr Smith said.

“The great deceiver that he is stated his tariffs were reciprocal, claiming the EU charging VAT justifies his tariffs.

“He even claims that these are discounted tariffs based on a made-up 39% rate he claims the EU applies to the United States. Again, there is no basis to these claims.”