**Dublin**: Tánaiste Simon Harris briefs Cabinet on the significant threat to Irish pharmaceutical exports due to potential US tariffs. Ministers are concerned about the economic repercussions, as the EU prepares for possible retaliatory actions amid ongoing discussions on the National Development Plan’s relevance to infrastructure investments.
At a Cabinet meeting today, Tánaiste and Minister for Foreign Affairs Simon Harris is expected to brief his ministerial colleagues on critical developments concerning Irish trade, particularly in light of potential tariffs from the United States. Recent assessments indicate that Irish pharmaceutical exports to the US could be halved over the next five years should a trade war unfold between the European Union and the US, as anticipated tariffs loom.
Officials project that, if the Trump administration enacts a proposed 20 per cent tariff, and the EU responds in kind, the economic repercussions could be significant. Estimates suggest a loss of several billion euro in revenue for the Irish exchequer. This scenario underscores the gravity of the situation as both economic uncertainty and the threat of escalating tariffs have stirred concerns in governmental circles.
Simon Harris, having engaged in discussions with European counterparts in recent weeks, is set to provide insights on the evolving situation. He will attend a summit of EU trade ministers in Luxembourg this Sunday where decisions on how the EU may retaliate to any newly proposed US tariffs will be deliberated. It has been reported that while a general tariff of between 20-25 per cent is expected, there may also be additional tariffs hinted at for various sectors, including pharmaceuticals.
Within the Cabinet, Taoiseach Micheál Martin has articulated a clear stance against the implications of tariffs, asserting that “tariffs are bad for the economy” and can have detrimental effects on global economic growth. He expressed a desire for negotiations, hoping to find a “landing zone suitable to everybody” through dialogue between the EU and the US.
In addition to trade discussions, Minister for Public Expenditure Jack Chambers is scheduled to brief the Cabinet on the National Development Plan’s ongoing updates. Chambers is expected to assert that addressing the anticipated economic impact of US tariffs requires robust investment in public capital projects, particularly to remedy infrastructure deficits that are critical for enhancing Ireland’s competitiveness and fostering economic growth.
The forthcoming review of the National Development Plan is viewed as increasingly significant, especially amidst the looming tariffs. It aims to facilitate investments in various areas, including housing, energy, water, transport infrastructure, and health digitalisation. With a completion target set for July, ministers are expected to identify viable projects that can be executed efficiently and under budget parameters, ensuring value for money in public spending.
As the domestic political landscape moves forward, the outcomes of today’s discussions could shape Ireland’s response to the impending changes in the international trade environment.
Source: Noah Wire Services
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