A Clare-based MEP fears the Government will have to row back on much of its planned spending over the coming years due to the impact of US tariffs.
As the EU weighs up its response to the imposition of 20% duties on goods imported into the US, Ireland’s Government is examining ways of preventing the “darker and more damaging scenarios” from coming to pass.
Speculation is mounting as to how Ireland and other countries in the European Union will respond to the measure signed off on by US President Donald Trump last night.
The move is expected to have significant consequences for many sectors in Ireland, but for now at least, the crucial area of pharmaceuticals is unaffected.
Tánaiste and Trade Minister Simon Harris suspects this won’t be the case for long, however.
The EU is reportedly “preparing for further countermeasures” to protect its interests, with European Commission President Ursula von der Leyen urging the US to “move from confrontation to negotiation”.
Finance Minister Paschal Donohoe insists negotiation is the way forward, if serious economic repercussions are to be avoided.
Sinn Féin Finance Spokesperson Pearse Doherty has echoed these sentiments while labelling the imposition of the tariffs as “economic sabotage”.
The European Commission will decide on the response to the development with Ireland’s EU Commissioner Michael McGrath set to be at the table for the discussions.
Speaking on Clare FM’s Morning Focus, Meelick Fianna Fáil TD Cathal Crowe insists vital sectors must be protected.
Should Irish-based US companies decide the weather the storm and remain here, it’s likely they’ll make lower profits in the short term at least, which could result in a reduced corporate tax take.
Scariff-based Independent MEP Michael McNamara fears the Government may have to tighten its purse strings in the near future.
You can listen to the full interview here:
