Donald Trump’s administration has pointed to “trade imbalances” with the European Union for a second time in three days in advance of Taoiseach Micheál Martin’s visit to the White House next week.
The US president on Thursday signed a proclamation recognising this month as “Irish-American Heritage Month”.
When signing the document in the Oval Office, Mr Trump said Irish-Americans were “great people” who had “voted for me in heavy numbers, so I like them even more”.
His comments were generally taken as encouraging in Government circles in advance of Mr Martin’s visit, which could become more challenging should Mr Trump use the opportunity to criticise Ireland, the EU or the State’s foreign direct investment economic model.
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The text of the proclamation signed by the US president outlines that his administration is working to “correct trade imbalances with the European Union” and that “our historic relationship with Ireland presents an opportunity to advance fairer trade policies and stronger investment opportunities that benefit both nations”.
While not a direct criticism of Ireland, the mention of trade imbalances – a preoccupation of Mr Trump’s for many years which has informed his aggressive tariff stance since his return to the White House in January – is noteworthy.
It comes after the US Department of State released a statement following a call between secretary of state Marco Rubio and Tánaiste Simon Harris which claimed trade imbalances had been discussed between the two men.
No such reference was made in a readout issued by the Irish side after the call, and Mr Harris directly contradicted the US account of the call on Thursday.
Speaking after a UK-Ireland political summit in England, the Tánaiste denied the State’s trade surplus with the US had been discussed at all.
“The trade imbalance wasn’t specifically referenced. I was on the call. I was on it for over 20 minutes. It was a very good conversation,” said Mr Harris.
The Tánaiste said he was the one to bring up trade in the call with Mr Rubio, but only in the context of the extensive trade links between the Republic and the US.
“I didn’t bring up the trade imbalance, I brought up the importance of the transatlantic relationship,” he said.
“[Mr Rubio] actually said to me: ‘I’m aware that Ireland is one of the top investors in the US.’ I was able to say: ‘We’re actually number six.’ That was the extent of the discussion on trade.”
On Friday, a US State Department spokesman said America would “continue to work on” its economic relationship with Ireland, but refused to clarify whether the trade imbalance between the two countries was discussed during the call.
“As a matter of policy, we do not disclose the details of diplomatic discussions,” he told the PA news agency.
“The United States values its economic partnership with Ireland, and trade remains an important component of our bilateral relationship that we will continue to work on.”
Ireland exports about €50 billion more goods than it imports from the US every year, a number driven principally by pharmaceutical exports. But when the trade of services – especially in the tech sector – is factored in, the pendulum swings in the US’s favour.
Mr Trump and many of the senior figures in his administration regard the existence of trade deficits as evidence of the US being exploited by its partners – and have vowed to end the practice, partly through the imposition of tariffs.
The US has imposed tariffs on goods from Mexico, Canada and China, and has promised that tariffs on EU imports are also on the way.
Irish officials are nervous that Mr Rubio’s comments signal that Mr Trump will seek to corner Mr Martin on the issue during his US visit next week for St Patrick’s Day engagements.
