Taoiseach Micheál Martin has said any supports to help businesses affected by US tariffs needs to be “financially sustainable” in the medium and long-term.
He was responding to calls for the introduction of a wage subsidy scheme in response to the tariffs.
During Leaders’ Questions in the Dáil, Labour leader Ivana Bacik asked the Taoiseach what measures are being considered to protect people whose jobs may be at risk.
Ms Bacik said the reality is the tariffs crisis means “workers are facing the dreaded prospect of possible job losses” and of “contracts being paused or cancelled due to uncertainty”.
Describing US President Donald Trump’s tariffs policy as being “drawn on the back of a napkin”, Ms Bacik said the Government should consider introducing a wage subsidy scheme to protect people working in Ireland who are at risk.
However, while acknowledging the situation, the Taoiseach said: “There’s some distance to travel here yet in terms of tariffs and trade wars” and that it is important to “give [the EU] the opportunity to negotiate”.
Mr Martin said “whatever we do has to be financially sustainable”, and that Ireland needs to ensure there is “some sense of where this settles, if it settles at all” before introducing any longer-term measures.
On Sunday, Minister for Finance Paschal Donohoe said he is not currently considering a wage subsidy scheme.
Speaking on RTÉ’s This Week, Mr Donohoe said supports similar to those introduced during Covid-19 are not appropriate now.
“I don’t believe an economy-wide wage subsidy scheme in the way we had during the Covid pandemic would be appropriate,” he said.
Mr Martin earlier said it was “imperative” that negotiations start soon with the US on tariffs amid concerns of a possible recession “unless some developments” can be made.
China, he said, has responded “very severely” to US tariffs but added that Europe so far has taken the right strategy with a moderate response.
He said the EU has countermeasures which it does not want to deploy but has the capacity to if necessary.
The Taoiseach said he has been speaking with several US companies in recent days, including in the pharma sector, and they are “very anxious” for some sort of negotiated deal between the US and European Union.
‘No winners’ with tariffs or trade wars, says Tánaiste
Tánaiste Simon Harris has said “there are no winners when it comes to tariffs, there are no winners when it comes to a trade war,”. The comments come as he is due to travel to the US to hold meetings with officials in the Trump administration.
The Minister for Foreign Affairs said there are people on standby in the EU ready to travel to the US to negotiate.
Speaking as he arrived at Government Buildings, where he updated Cabinet colleagues on his engagement with EU trade ministers in Luxembourg yesterday, Mr Harris said he was very pleased with EU unity on trade and tariffs.
He said good progress was made to “protect key industries that there were particular concerns in relation to”.
When asked to clarify these industries he said it is a matter for the European Commission, but referred to particular concerns around the drinks and dairy sector.
He said he wants to be very clear that there are no winners, but he is satisfied good progress has been made on mitigating risks to some key sectors here.
The Tánaiste said so much has been lost already in terms of turmoil on the stock markets.
He said everyone tends to look at tariffs from their own interests, but the reality is “if you start to see a trade war that drags down the global economy” it’s going to have major consequences in general on everyone’s economic growth in terms of jobs and investment.
“That’s what we have to avoid at all costs. This level of uncertainty, this level of financial turmoil simply can’t be sustained by any economy including, respectfully in my view, the US.”
During his visit to the US, he plans to promote the importance of free and fair trade and said it is about sitting around the table and not about “slapping tariffs” adding that “our job is to be mature, measured and calm in how we respond to this”.
Mr Harris is travelling to Washington later for a series of meetings with congressional figures and senior administration representatives, including Commerce Secretary Howard Lutnick.
The Tánaiste is hoping his second US visit in as many months will ensure that the lines of communication are kept open at a difficult time, and that he will make the case for a negotiated solution to trade issues.
Mr Harris said he intends to set out European efforts to get to a place of negotiation, adding that if people get around the table then a way forward can be found.
He is due to meet Mr Lutnick, a firm supporter of US tariffs, as well as a number of senior politicians on Capitol Hill.
In his discussions, Mr Harris intends to outline Ireland’s standpoint on the impact of potential tariffs on pharma, as well as taking the opportunity to discuss international developments and Northern Ireland.
Minister for Agriculture Martin Heydon will also be in Washington for a meeting with the US Agriculture Secretary about the impact of Mr Trump’s tariffs on Irish agricultural exports.
He will also meet the assistant US Trade Representative for Europe and the Chair of Senate Agriculture Committee.
Last year, Irish food and drink exports to the US were worth almost €2 billion, according to Bord Bia.
Article Source – Tariff supports have to be ‘sustainable’ – Taoiseach – RTE
