Taoiseach Micheál Martin has said he expects negotiations between the EU and US before threatened tariffs come into force next month.
He said he anticipates there would be discussions within the EU on the approach to the US threat of further tariffs and he would seek to protect Irish interests in those talks.
Irish whiskey producers are facing severe tariffs on exports to the US in response to the EU promise to hit US whisky – which in turn was in response to tariffs on steel and aluminium which came into force on Wednesday.
The prospect of a trade war between the EU and US strengthened this morning with a threat from President Donald Trump to hit EU exports of alcoholic drinks with 200 per cent tariffs.
Irish whiskey exports to the US market were worth €800m last year.
On the fourth day of his trip to the United States for St Patrick’s Day, Mr Martin has a series of engagement with business groups and will also attend the Ireland Funds annual dinner this evening, one of the biggest dates in the Irish-American social calendar.
“I think the only effective way to deal with it is through dialogue between the European Union and the United States government,” Mr Martin told journalists in Washington.
“It needs to get to the dialogue stage because business tariffs increase inflation and are not good for the consumer and are not good for business,” he said. “But I do believe there will be some distance to go ... there will be discussions and consultations within the European Union in respect of European actions. And obviously again, in that scenario we’ve been endeavouring to protect Irish interests in terms of specific Irish products of Irish sectors.”
Mr Martin played down fears that Mr Trump’s repeated references to US pharmaceutical companies in Ireland at their Oval Office meeting on Wednesday suggested the future of the industry in Ireland was in danger.
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“A lot remains to be seen in terms how this manifests itself in terms of specific US legislation, or mechanism of time, or whatever. It’s all somewhat uncertain and unclear, in relation to that, but suffice to say that the investment in Ireland is very solid, deeply embedded, and plays a huge role in the overall architecture of these pharmaceutical companies... and particularly their access to the European market and their access to the Asian markets.”
He stressed that Mr Trump was “was a gracious host to be frank. And he did say, look, and if there are issues, don’t hesitate, pick up the phone, I’m available to contact you in respect to any issues. I think he doesn’t have any he doesn’t bear any ill towards Ireland, that was very, very clear.”
Meanwhile, Mr Martin has said he hopes a meeting with Jewish organisations scheduled for Friday will go ahead, after reports in the Jewish press suggested that the meeting had been cancelled. There was no immediate confirmation from officials that the meeting would take place. According to the report in the Jewish Insider, the Israeli ambassador to Washington Yechiel Leiter suggested that Mr Martin was anti-Semitic, saying: “The battle for anti-Semitism starts with shunning anti-Semites.”
Mr Martin strongly rejected any suggestion of anti-Semitism and warned against “misrepresentation of Ireland’s position on this ... deliberate distortions of Ireland’s position, particularly in relation to allegations of anti-Semitism”.