A Clare economist is expecting farmers to bear the greatest brunt of the impending Trump trade war.
The US has announced tariffs of 20% on almost all goods imported from the EU, though pharmaceuticals have been exempt for now.
Donald Trump last night made his “Liberation Day” announcement at the White House, promising economic freedom for American workers.
Ireland will be lumped in with a 20 per cent tax on EU goods from Friday next week, with Trump saying the bloc had treated his country “very badly”.
By virtue of Brexit, the North of Ireland and the UK will only be subject to a 10% penalty, which will put producers in the Republic of Ireland at a competitive disadvantage.
Last year alone, Ireland exported €1.9bn worth of food and drinks to the US, with dairy and whiskey accounting for 90%.
Speaking on Clare FM’s Morning Focus, Ennis native and Economist at DCU, Dr Micheál Collins says that while Donald Trump has form to reverse out of his decisions and that the American people will be affected by price hikes, Irish farmers will feel the pinch.
An analysis by CBS News has predicted that the backlash to Trump’s round of worldwide tariffs could raise the cost of basic amenities such as clothing and electrical appliances by as much as 30%.
Even for major American companies like Apple, which produces the majority of its products in China, will now have an extra 34% charge to bear, just to access the US market.
Kilkishen-based Politics Professor Dr Chris McInerney expects rounds of negotiations will take place to prevent an all-out trade war, but says it’s impossible to predict what Trump will do next.
You can listen to the full interview here:
