A Clare economist says even a 10% tariff imposed on EU goods is likely to lead to local job losses and reduced spending.
It comes as the Department of Finance has warned that Donald Trump’s threatened 30% tariff would have a significant effect on economic growth.
It’s now less than two weeks to August 1st, when the European Union is expected to face the full wrath of the US President’s planned 30% tariff on all imports from the trading bloc.
Discussions are continuing between Irish, EU and US officials, however, in a bid to trash out a deal, with many predicting that the final rate could be reduced to 10%.
Kilkishen-based Associate Politics Professor at the University of Limerick, Dr Chris McInerney says regardless, Ireland is particularly exposed in the tech and pharma sectors.
Finance Minister Paschal Donohoe stated this week that Ireland’s finances are in a good condition, despite warning that a 30% tariff would have a significant effect on growth and job creation.
According to a revised report from Bank Of Ireland, employment and GDP will still grow marginally, if the tariff rate stays at 10%.
Ennis economist and Assistant Professor of Social Policy at UCD Micheál Collins insists, though, that things will inevitably go downhill locally, if and when the charges come into effect.
Listen to the full interview here
