Main Points
- US president Donald Trump has announced 20% tariffs on all imports from the European Union.
- Pharmaceutical products will not be included in the tariffs for now, according to the White House.
- Tariffs of 10% will be charged on imports from the UK.
- Holding a chart listing all of the countries targeted, Trump said the US is charging a “discounted reciprocal rates” and that the EU should actually be charged at 37%.
- ‘We see no justification for this’: Micheál Martin says 20% tariffs on exports to US ‘benefits no one’ and puts jobs at risk.
That’s it from The Irish Times on tonight’s coverage of Donald Trump’s so-called ‘liberation day’. For full coverage and analysis of the US’s tariff announcements, go to irishtimes.com. Our live coverage of the fallout from these announcements, and tomorrow’s response from the EU, will resume on Thursday morning.
Trump’s tariffs: what do they mean for Ireland?
The impact of Donald Trump’s tariffs on Ireland – and the trade war that may well follow – will take some time to play out, writes Cliff Taylor. But there is no doubt that the sweeping tariffs announced on Wednesday evening in the White House pose a significant economic threat to this State and particularly to investment, jobs and tax revenues.
It was a landmark moment in the Trump presidency, declaring the US’s “economic independence” – which is bad news for a country like Ireland that relies on US trade and inward investment. Trump made it crystal clear that he wants production for the US market to come back to the US and there is more to play out here in terms of how his policy evolves.
What we know is that most imports from the EU will face a tariff of 20 per cent. This is roughly what was expected and at least Ireland was not picked out for special treatment. Importantly, according to a White House fact sheet last night, pharma products will not be covered by this initial round of tariffs. If confirmed, this is some relief to Ireland in the short term – though some products in the wider pharma/chemicals sector could still be covered.
Pharma is, however, expected to be hit by special tariffs due in coming weeks, and a tariff figure of 25 per cent has been mentioned. So it may be a temporary reprieve, but reports suggest the sector was looking for tariffs to be phased in rather than introduced quickly. How this plays out will be vital for Ireland.
Read Cliff Taylor’s full analysis of Trump’s tariff plan here
Some more reaction from Europe correspondent Jack Power: Across the board tariffs on trade coming from the EU would only lead to a “downward economic spiral” for the United States, according to Bernd Lange, the chair of the European Parliament’s trade committee.
The senior Germany MEP described Trump’s 20 per cent tariffs on imports as “unjustified, illegal and disproportionate”. Countries targeted by the protectionist trade measures should respond with a “united front”, in order to put pressure on the US “to end this tariff madness,” Lange said.
In a video statement, Swedish prime minister Ulf Kristersson said he deeply regretted the path the US had gone down. “We don’t want a trade war, that would make our populations poorer and the world more dangerous in the long run,” he said.
Paolo Gentiloni, the former EU economy commissioner, described the announcement of major US tariffs as a “dark day”.
What about Russia?
There’s been plenty of mumblings since the Rose Garden tariff announcements that Russia did not appear on Trump’s chart. However, the US treasury secretary Scott Bessent has now said Russia was not on the tariff list “because we don’t trade with Russia, they’re sanctioned”.
Reuters
Sign off from our political correspondent Jack Horgan-Jones on what will be the next steps of the Irish Government.
He writes: There is a very clear sense in Government that the focus is shifting in two directions: towards the EU response, where Ireland has influence. EU trade commissioner Maroš Šefčovič goes to the United States soon to start negotiations, while at home, the Government plans to engage with unions and employers, as well as across all sectors, which will be fed across to Europe.
The other direction seems to be a big emphasis on Irish competitiveness, as evidenced by Simon Harris’s statement this evening. Exactly what this means for regulatory and legislative reform, and the political consequences of that, remains to be seen, but expect it to feature in a big way in the days and weeks ahead.
Speaking on RTÉ’s Prime Time programme, Minister for Agriculture Martin Heydon has said that the exemption for pharmaceutical goods is “probably not surprising”, but that Trump “may well still” include the products for tariffs at a future date.
“As of tonight... it doesn’t form part of (the tariffs),” Mr Heydon said.
Sinn Féin finance spokesman Pearse Doherty said putting the tariffs on drugs would have harmed US consumers but warned: “Sense has not stopped Trump so far... what we don’t know is there a volume 2,” he asked, adding that he could be holding back reciprocal measures in response to what the EU does.
Asked about food, agriculture and drinks exports, Mr Haydon said the tariffs were “problematic”. He said for the whiskey sector, Scotch whiskey would have a ten per cent advantage over Irish exports from tomorrow - he said all this would be worked through by negotiation.
He said the EU is not distancing itself from negotiations but seeking to negotiate from a position of strength. He has flagged an announcement expected from Ursula von der Leyen at 4am Irish time.
Mr Doherty said the Government needed to focus on investment in infrastructure, citing the electricity grid, but also to influence the European strategy and counter-tariffs. He said the EU should only countenance them if they will bring Donald Trump to the negotiating table and will lead to de-escalation, but should not follow the US president down a path of self-harm.
Asked about supports for affected exporters, Mr Haydon deflected, saying the Government did not know where negotiations would end up and it was “far too early” to say where supports would land.
Mr Doherty was also asked if there should be financial assistance for firms, and responded that Europe should look to supports for firms and households. He also mentioned the all island economy as a result of the different levels of tariffs in place.
Northern Ireland responds
First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly have said they are focused on protecting Northern Ireland following the announcement of US tariffs.
US president Donald Trump implemented a 10% tariff on the UK, but announced a 20% tariff on the European Union.
In a statement, First Minister Michelle O’Neill said: “Tonight the US president has announced tariffs for countries across the world.
“In every engagement, both at home and internationally, my priority has always been to protect the best interests of workers, families, and businesses on the island.
“We must ensure that our all-island economy, which has grown substantially in recent years, continues to thrive to create better opportunities for all our people.
“I will continue to speak with political and business leaders throughout this period of uncertainty, always prioritising the prosperity and future of everyone who calls our island home.”
Ms O’Neill announced a boycott of engagements in Washington DC to mark St Patrick’s Day last month.
Ms Little Pengally, who met Mr Trump at the US Capitol, said the focus shifts to UK-USA negotiations and efforts to ensure the EU response does not impact Northern Ireland.
She said: “My focus will continue to be on doing all I can to champion Northern Ireland. This means pushing for all possible action to protect Northern Ireland, especially against any retaliatory tariffs by the EU.
“I have been vociferously raising our Northern Ireland issues to all involved and will continue to do so. Focus now moves to pushing forward the UK-USA arrangements, supporting UK Government to do so and ensuring Northern Ireland is central to these considerations.
“In addition, all efforts to ensure EU tariffs to USA and political decisions at EU level to US do not penalise Northern Ireland business or detrimentally impact on us. Much still to be done.” Reporting from PA
A senior White House official has said Donald Trump will respond to retaliation by other countries to ensure that is emergency order is not undermined, Reuters reports
Australia will not place reciprocal tariffs against the US, says Albanese
Australian Prime Minister Anthony Albanese said on Thursday the decision by US President Donald Trump to impose tariffs was not “the act of a friend,” but said his country would not place reciprocal tariffs against the United States.
Trump said on Wednesday that he would impose a 10% baseline tariff on all imports and higher duties on some of his country’s biggest trading partners, in a move that ratchets up a trade war that Trump kicked off on his return to the White House.
Reuters
More from political correspondent Jack Horgan-Jones on the Irish Government’s response to the US tariff announcements.
Government sources are guarded on the apparent carveout for the pharmaceutical sector.
They note that there are sector-specific tariffs contained in Trump’s Wednesday night announcement - albeit on the automotive sector - suggesting it’s something that the administration sees as part of the toolkit, even if it’s holding off for now.
So, they fear that a general tariff on pharmaceuticals could nonetheless come on to the table - perhaps if there is an ante-up from the EU in response to tonight’s announcement.
Lower tariffs in UK and New Zealand leaves Irish dairy and drinks products at “competitive disadvantage”, says IFA
In an initial reaction to the announcement of tariffs by US President Donald Trump, the Irish Farmers’ Association said the relative differences will impact the competitiveness of Irish products on the US market, including Kerrygold.
The fact that New Zealand only has a 10% tariff for dairy products and the UK only has a 10% tariff on drinks, while the EU will have 20% tariffs, will leave us at a competitive disadvantage against some of our biggest competitors in these two sectors, it said.
Ireland exported circa €1.9bn worth of food and drink products across the Atlantic in 2024, said the IFA. The US market is an important outlet and accounts for circa 11% of our total food and drink exports.
Within the €1.9bn figure, dairy at €830m and drinks, predominantly whiskey, at €900m account for 91% of what we export. We also export pig meat (€23m), beef (€8.8m) and seafood (€3.8m).
Kerrygold is now the second bestselling butter brand in the US, where we sent almost €500m worth of product in 2024. The market accounts for about 7.5% of our total dairy exports.
Pharmaceuticals not subject to tariffs, for now, says White House
The White House ‘fact sheet’ on today’s tariff announcements, recently published online, has stated pharmaceuticals will not be subject to tariffs for now.
It writes: Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminium articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.
No justification for 20% tariff on EU imports, says Taoiseach
Taoiseach Micheál Martin has said there is “no justification” for Donald Trump’s 20% tariffs on imports from across the European Union but that any response should be “proportionate, aimed at defending the interests of our businesses, workers and citizens”.
“More than €4.2 billion worth of goods and services are traded between the EU and the US daily,” said the Taoiseach, following the US president’s tariff announcement.
“Disrupting this deeply integrated relationship benefits no one. Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk. We will now reflect with our EU partners on how best to proceed.
“As I agreed with President von der Leyen in our recent phone call, EU unity is crucial, and our response should be considered and measured.
“Any action should be proportionate, aimed at defending the interests of our businesses, workers and citizens.
“Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests. Ireland will be a strong advocate for an outcome which enhances the existing and strong transatlantic trading relationship.
“As a small, open economy, and as a country that has built our prosperity on a policy of free and fair trade, there is no doubt that the imposition of tariffs by the US will have an adverse impact.
“Ireland’s priority is the protection of jobs and our economy. We are starting from a position of strength, and our economy is resilient. It is important that we focus on factors that we can control, including improving our competitiveness and investing in infrastructure.
“By working with Irish-owned companies, multinationals, our EU partners and bilaterally with the US, we can and will weather this storm.”
The Labour Employer Economic Forum (LEEF), the Government backed forum for employers, unions and its officials to engage on employment issues, is to meet on Friday, when the Government will also convene its Trade Forum, writes political correspondent Jack Horgan-Jones.
Government sources said trade will be the number one item on the agenda for the meeting, which is the first since the Government was formed, although it had been in the diary for some time and is not a direct reaction to Wednesday’s announcement.
Other issues on the agenda include collective bargaining action plan, blended working and the all-island labour market.
Pharma exempt for now
According to a White House fact sheet, pharma products will not be covered by this initial round of tariffs, writes Cliff Taylor. If confirmed this is some relief to Ireland in the short term - though some products in the wider pharma/chemicals sector could still be covered. However pharma is expected to be hit by special tariffs due in coming weeks and a figure of 25 per cent has been mentioned. So it is likely to be a temporary reprieve.
Europe correspondent Jack Power responds from Brussels: The fact European capitals had been expecting Trump to hit trade coming from EU states with tariffs of 20 per cent won’t do much to soften the economic blow.
Senior figures in the European Commission, the EU executive arm that sets the bloc’s trade policy, had privately flagged several days ago that they were expecting tariffs of 20 per cent. Now that has come to pass the commission will come under pressure to hit back with significant retaliatory tariffs targeting US trade.
In response to tariffs Trump already announced on steel and aluminium sold into the US last month, the EU’s executive body has been finalising its own package of import taxes on more than €20 billion worth of US products, such as soybeans and motorbikes.
Ursula von der Leyen’s commission is expected to pull together a further round of tariffs on top of those, to ramp up the pressure on the US administration. Senior EU officials have in recent days suggested that nothing is off the table, as the commission tries to force Trump to the negotiating table.
As one of the states most exposed to an EU-US trade war, Ireland will be encouraging caution in the coming days, other EU countries are less likely to want to tread so softly in how the bloc responds.
It’s understood the European Union will not be formally responding to Donald Trump’s tariff plans until Thursday morning. President of the European Commission Ursula von der Leyen is expected to make a statement tomorrow morning.
Important to note that Trump’s tariffs will leave Northern Ireland in a complicated position and will put the Windsor Framework, the post-Brexit trading rules agreed by the EU and UK for the North, to the test given the EU has been hit with a 20 per cent tariff and the UK a 10 per cent tariff.
20% tariff could have “significant effect on Irish investment and the wider economy” for “some time”, says Tánaiste
Tánaiste Simon Harris has said Donald Trump’s 20 per cent blanket tariff on goods from all EU countries “could have a significant effect on Irish investment and the wider economy” which is “likely to be felt for some time”.
Mr Harris said the Government has been “actively preparing for this possibility for some time” and “will seek to control what we can control and influence what we can influence while drawing on unity with our EU partners as our greatest strength”
“We know that the EU stands ready to find a negotiated solution with the US”, he added.
“The EU will have to respond in a proportionate manner which protects our citizens, our workers and our businesses. The EU and Ireland stands ready to find a negotiated solution with the US. Negotiation and dialogue is always the best way forward.
He noted that the latest tariffs were in addiction to tariffs on steel and aluminium (25%) and auto sector (25%) that the US announced last month.
“It represents a huge challenge to Irish exporters to the US across all sectors. Work is already under way to mitigate this and we are already taking concrete steps to boost our domestic competitiveness and investing in our infrastructure.
“The Government is accelerating preparations for an Action Plan on Competitiveness and Productivity with Minister Burke leading this work. This plan will focus on domestic policy measures which can make the Irish economy more competitive and resilient to economic shocks.
Our relationship with the United States is long, deep and meaningful and I want to be clear that it will endure far beyond any difficulties we may encounter in the time ahead. We will continue to emphasise the fact that the US-EU relationship is a two-way street. Our economies are interdependent and an extended trade dispute is in no one’s interest. We will continue to seek to engage with the US administration in a constructive way.
“Next Monday, I will attend a meeting of Foreign Affairs Council on Trade in Luxembourg where I will be discussing today’s developments and our collective response with my EU counterparts and Commissioner Šefčovič.
“In advance of this I will hold a meeting of the Trade Forum this Friday. This will be an opportunity for me to engage with business representatives in response to tonight’s announcements.
“We must remain calm and measured in our response. Ultimately every disagreement has to end in agreement and we will be continuing to advocate and argue for negotiated solutions. This is how we will end this dispute and this will be my focus along with that of my colleagues in the time ahead.”
News on Pharma coming through
Minister for Finance Paschal Donohoe has said it is “important now that Europe considers our best response back”.
“The moves that President Trump has made will have a big effect on global trade but Europe and Ireland is approaching this from a position of some strength,” he told The Irish Times. “We will act to look after our jobs and our interests.”
Reaction from Irish Government is already starting to filter through, says political Correspondent Jack Horgan-Jones has already spoke
There was a degree of relief that Ireland was not among the countries named by the US President, with one senior minister of the view that it “could have been worse” - but there was overriding concern about the impact on the pharmaceutical and other exporting sectors, which now face tariffs of 20 per cent for exporting to the US.
One senior source cautioned that the 20 per cent could prove to be a starting point and could rise further in the face of EU retaliation.
The 20 per cent is in line with expectations, but that is cold comfort to sources in Government here, with one minister drily offering: “Not exactly good news.” The mismatch between the tariff levied on the UK and the 20 per cent tariff on the EU would prove “tricky” with regard to Northern Ireland, one Cabinet source offered.
The White House has posted the famous chart on its official X account
Government should advocate for “proportionate and measured EU response” to Trump tariffs, says Ibec chief
Ibec chief executive Danny McCoy has said he “deeply disappointed by the US Administration’s decision to impose 20% tariffs on exports from the European Union, particularly given the impact it will have on transatlantic trade and consumers”.
“We now urge the Irish Government and the European Commission, to act with urgency to find a negotiated solution with the US administration,” he said. “Government must also work with business to assess the potential consequences for the Irish economy resulting from the imposition of US tariffs and the likely EU response to these tariffs. The Government must advocate for a proportionate and measured EU response, informed by a detailed analysis of supply chains, strategic considerations, and the broader implications of any retaliatory measures.
“While this will present challenges for a number of sectors, we anticipate that the new tariffs will result in a net overall export impact of around 2–3% in the short-term. Thankfully, we are in a position of economic strength, which will provide the necessary cushion to absorb slower growth and invest in diversifying market opportunities.
“Open and free trade has been hugely beneficial to the global economy. Ireland, Europe, and the US have all gained significantly from this trading relationship. Ireland, in particular, has played a crucial role in providing substance and strategic positioning for US firms accessing the European single market and global markets. Our strong track record of delivery has not only benefited our own economy but has also contributed to the success of US firms and their shareholders.
Video: Trump to introduce 20% tariff on ‘pathetic’ European Union
Irish food, drink and pharma sectors to be worst hit by 20% EU tariff
Irish Times writer Cliff Taylor responds to Trump’s tariff announcement: The tariff on EU imports into the US of 20 per cent is around what the EU and Ireland had expected. No mention yet of extra sectoral tariffs.
This will be significantly disruptive to trade – food, drink and pharma are the three sectors worst hit. And the worry will be that an inevitable EU response could lead to a trade war and possibly higher tariffs. We will see.
An interesting point is the baseline tariff of 10 per cent being imposed – this is the lowest rate being imposed on any country. It may suggest that this is the tariff level which Trump wants to see in place in the long term to raise funds to allow lower taxes elsewhere.
Higher tariffs – such as the EU – might perhaps be negotiated down towards this level. This may provide a dilemma for the EU in terms of reaction – does it try to talk first or go ahead and react?
Donald Trump has criticised “exorbitant VAT taxes” as he announced new tariffs.
The US president told an event at the White House: “For decades, the United States slashed our trade barriers on other countries while those nations placed large tariffs on our products and created outrageous non-monetary barriers to decimate our industries.
“And in many cases, the non-monetary barriers were worse than the monetary ones.
“They manipulated their currency, subsidised their exports, stole our intellectual property, imposed exorbitant VAT taxes to disadvantage our products, adopted unfair rules and technical standards and created filthy pollution havens.
“They were absolutely filthy, but they always came to us and they said we’re violating we should pay for it.”
And here’s what has become the world’s most infamous chart
To the countries unhappy about the tariffs, Trump says “terminate your own tariffs, don’t manipulate your currencies and start buying tens of billions of dollars of America goods.”
Trump: The US will establish a minimum baseline tariff of 10% on other countries.
Trump lists tariffs across the globe, including 20% for EU and 10% for UK
Donald Trump is now listing tariffs from a chart, naming countries and regions across the globe.
- China will face 34% tariffs
- European Union will face 20% tariffs
- United Kingdom will face 10% tariffs
- Switzerland 31%
- South Africa 30%
- Brazil 10%
- Israel 17%
- Vietnam 46%
- Taiwan 32%
- Thailand 36%
- Japan 24%
- India 26%
- South Korea 25%
- Pakistan 58%
- Colombia 10%
The European Union will be charged tariffs of 20%, says Donald Trump.
The US president holds up a chart in the rose garden which states tariffs of 20% for the European Union. He says the US is charging “discounted reciprocal rates” and that the EU should actually be charged 37%.
He says: “tariffs will be not a full reciprocal, I could have done that but it would have been tough.”
Trump: “They’ve taken so much of our wealth away from us. We’re getting smart. The US can no longer continue with a policy of unilateral economic surrender.
“Today we’re standing up for the American worker and finally putting America first.”
Donald Trump - Effective at midnight, US will impose 25% tariff on all foreign made automobiles.
Donald Trump reminds attendees that these are “reciprocal tariffs on countries throughout the world...Reciprocal, they do it to us so we do it to them.”
“This is one of the most important days In American history, it’s our declaration of economic independence.
“It’s our turn to prosper. With today’s action we will finally be able to make America greater than ever before.
“Jobs in factories will come roaring back into our country… we will supercharge our domestic industrial base
“Ultimately more production at home will be mean stronger competition and lower prices for Americans.”
Trump: April 2nd will forever be remembered as the day we began to make America wealthy again.
US president Donald Trump has taken to the podium in the Rose Garden and says he has “some very good news” today.
It’s understood the European Union will not be responding to Donald Trump’s tariff plans until Thursday morning.
President of the European Commission Ursula von der Leyen is expected to make a statement tomorrow morning but there will be no press conference with EU Commission for Trade and Economic Security Maroš Šefčovič on Thursday, it’s understood.
Tánaiste Simon Harris is expected to make a public statement following Mr Trump’s announcement on Wednesday.
Mr Trump has for weeks pegged April 2 as “Liberation Day”, when he plans to impose an array of duties that could upend the global trade system. Details of the tariff plans were still being formulated ahead of a White House Rose Garden announcement ceremony scheduled for 4pm EST.
Government mood ‘gloomy’ as details of tariffs set to be announced
Irish Times political correspondent Jack Horgan-Jones describes the mood in Irish Government circles as “gloomy”.
He writes: “The big thing is how broad tariffs may be – one Cabinet source said they will be watching to see if tariffs are ‘sectoral, country or blanket’ level, while a second senior minister characterised this as ‘scattergun, broad sweep or selective’ – will he tariff Irish whiskey, for example, but not dairy products?
“One source involved in planning the Irish response said that tariffs that are ‘flat, broad, fat and simple’ is the best outcome for Ireland. So something like a 25 per cent across-the-board tariff. On the flip side, if this is a starting point, building up with specific tariffs on pharma, for example, some non-tariff barriers adding extra costs, and any moves on tax, that becomes more and more difficult for Ireland.
“Similarly, with the structure of the pharma sector split between tangible things like manufacturing and intangible assets, which have been the engine that drove much of the boom in corporate tax in recent years, how does that break down? ‘Can we book intellectual property through Ireland even if we can’t sell pharma products?’ questions this same minister.
“Any reference to the pharmaceutical sector will of course be unwelcome for Ireland. So, in addition to the tariffs, whether Trump announces or even flags sector-specific measures will be a key thing. ‘That’s where things will really hit,’ says one senior Minister. There are also nerves about mentions of Ireland specifically – ‘to know if we are actually on his mind’, in the words of one source.
“Two senior Government sources said they will also be looking for indications of his willingness to negotiate; another Minister said they’ll be listening closely for any indication of timelines for tariffs coming in – Trump has a habit of announcing something, only for the implementation to lag behind.
“Another thing to watch will be what happens afterwards. Dublin expects a response at the EU level, and the EU’s trade council (a meeting of trade ministers, which Simon Harris will attend for Ireland) will be convened early next week.
“Senior sources in Dublin are wary about next steps, knowing that a return of serve from Brussels will likely be matched by another round from Washington, and so forth – trying to figure out what happens three moves in advance is one of the many complex problems ahead.
“Meanwhile, the Government here is likely to bring a major focus on Irish competitiveness – domestic-level enterprise reforms, technical changes or new legislation to cut down on red tape and try to improve what they call the “offering”, in the world of foreign direct investment.
“The response, in terms of assistance to firms and households, is another thing to watch. Bloomberg reported today that the EU is working on short-term emergency measures – exactly what is meant by that remains to be seen, but Government sources pointed to the ‘short-term’ nature of that response.
“The Government here favours a Brexit-style response rather than a Covid-style one: ie, some balance sheet supports for affected sectors, maybe helping them find new markets – but a big bazooka of State money does not feature in Irish thinking at the moment. The thinking is that there could be a permanent change in the structure of Irish trade – and protecting firms from that may not be possible, or even desirable.
“There’s a similar approach for households, with Ministers anxious to pour cold water on the idea of a volley of once-off payments for families in the wake of tariff moves.
“How quickly this will move is another question. With the EU committed to not hitting back for a fortnight, things won’t change for firms or voters in the morning. ‘It’ll be slow moving in terms of the macro(economic) impact,’ says one Cabinet Minister. There is a huge amount that is difficult to model or predict, according to people involved in planning the Irish response. You can figure out what the impact of a certain tariff might be on a certain sector, but so-called ‘second order’ effects – further down the food chain – are fiendishly complex to figure out, particularly before you know what you’re reacting to. So trying to figure out the precise impact on the tax take, for example, is a challenge.
“The government here will also be looking for indications of what Trump’s intentions are after ‘Liberation Day’ – specifically, whether he flags a “willingness or openness to negotiate and walk this back”, one senior Minister says.”
Expectation of 20% tariff for Ireland, says Taoiseach
Political correspondent Jack Horgan-Jones reports: Taoiseach Micheál Martin has told his party’s TDs and Senators that the expectation is of 20 per cent tariffs across the board and possible sectoral tariffs too.
“Uncertainty is the one certainty and that “the whole system is working flat out to respond,” he said. He told his parliamentary party that he senses the US tariffs are an issue that will hang over us for some time and “may have economic implications”.
Trump considering revoking tariff exemptions for cheap shipments from China
The Trump administration is considering revoking tariff exemptions for low-value shipments from China, known as “de minimis,” as part of Wednesday’s tariff announcement, a source familiar with the plans said, according to Reuters.
The decision would reinstate Donald Trump’s February decision to end duty-free entry for cheap Chinese goods entering the US. The decision had been paused because of logistical issues complicating the inspection of millions of the low-value shipments.
“They figured it out,” the source said. “De minimis is being stripped from China.”
Trump is expected to impose sweeping new tariffs on global trading partners on Wednesday, in a move that would escalate a trade war, increase prices and upend a decades-old trade order.
Trump first took aim at cheap shipments from China in his February 1st executive order, imposing a 10 per cent tariff on Chinese goods and ending the trade rule that allows merchandise with a value totalling less than $800 to enter the U.S. duty-free and with minimal inspections.
The number of shipments entering this way has exploded in recent years, reaching nearly 1.4 billion packages last year. More than 90 per cent of all packages coming into the US now enter via de minimis, and of those, about 60 per cent come from China, led by direct-to-consumer retailers such as Temu and Shein.
Reuters
Overarching ambition is to redefine US as manufacturing superpower, says White House
White House press secretary Karoline Leavitt has told reporters that Donald Trump is spending today with his economic team fine-tuning his announcement on sweeping tariffs.
The scope and severity of these tariffs have been a closely guarded secret and the general mystification has led to lurching market prices and widespread foreboding among the United States’ trading partners, including Ireland, reports Irish Times Washington correspondent Keith Duggan.
“Our country has been one of the most open economies in the world and we have the best consumer base hands down,” Ms Leavitt said on Tuesday.
“But too many foreign countries have their markets closed to our exports. This is fundamentally unfair. The lack of reciprocity contributes to our large and consistent trade deficits that have gutted our industries and hollowed out key work forces. But those days of US, beginning tomorrow, being ripped off, are over.”
She said that while Mr Trump is always open to taking a phone call- “always up for a good negotiation”- from countries seeking to discuss their individual trade imbalance with the United States, the overarching ambition of the programme is to redefine US as a manufacturing superpower.
“The president will be addressing the decades of unfair trade practices that have ripped our country off and American workers off. It has hollowed out our middle class, it has destroyed our heartland and the president is focused on reshaping our global economy to make sure that US is once again a manufacturing superpower.”
Read Keith Duggan’s full report of what we can expect from this evening’s announcement, here.
White House pushes back against reports that Musk is soon leaving administration
The White House press secretary, Karoline Leavitt, has pushed back against reports that Donald Trump has told his inner circle that Elon Musk will be taking a step back from the Trump administration, according to a Guardian report
Calling the Wednesday report from Politico a “‘scoop’ [that] is garbage”, Ms Leavitt said: “Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special Government employee when his incredible work at Doge is complete.”
According to three people familiar with the matter who spoke to Politico, Trump remains pleased with Musk’s unofficial “department of Government efficiency”.
However, both Musk and Trump have agreed in recent days “that it will soon be time for Musk to return to his businesses and take on a supporting role”, Politico reports.
Government wants to protect people, jobs, public services, says Tánaiste
Fine Gael leader Simon Harris has told a private meeting of his TDs and Senators that he wants to protect jobs and public services, as the Government braces for news of US President Trump’s global tariff agenda, reports Irish Times political correspondent Jack Horgan-Jones.
Mr Harris told the meeting that he will continue talks with EU counterparts and the commission in the days ahead as the full impact of Trump’s tariff agenda is probed.
He told the party that his priority will be to protect people, especially the most vulnerable, but also cited farmers, communities and workers, according to a briefing note of his comments circulated by the party.
Fine Gael had been in Government during the financial crisis, the pandemic and Brexit, arguing there was a strategy for navigating economic turbulence.
As we await Donald Trump’s White House rose garden address on reciprocal tariffs at 9pm GMT/4pm EST, here’s a reminder of what will happen later today.
Trump has for weeks pegged April 2 as “Liberation Day”, when he plans to impose an array of duties that could upend the global trade system. Details of the tariff plans were still being formulated in advance of a White House Rose Garden announcement ceremony scheduled for 4pm EST.
However, Sky News reported on Wednesday afternoon that Trump is planning 10 per cent, 15 per cent and 20 per cent tariffs depending on country and by industry.
The new duties, which are due to take effect immediately after Trump announces them, rattled grain traders as the US exports more than 40% of its soybean production. A disruption in agricultural export sales would hit farmers as they are struggling with weak crop prices.
China, the world’s biggest soybean importer, already imposed tariffs on US farm products last month in response to earlier Trump levies.
But what does this all mean for Ireland? There are reports of a “gloomy” mood in Dáil Éireann with concerns around whether the tariffs will be ‘scattergun, broad sweep or selective’.
One source involved in planning the Irish response told Irish Times political correspondent Jack Horgan-Jones that tariffs that are ‘flat, broad, fat and simple’ is the best outcome for Ireland. So something like a 25 per cent across the board tariff.
On the flip side, if this is a starting point, building up with specific tariffs on pharma for example, some non-tariff barriers adding extra costs, and any moves on tax, that becomes more and more difficult for Ireland, reports Horgan-Jones.
Additional reporting from Reuters
European shares declined on Wednesday, dragged down in particular by healthcare stocks, as investors awaited tariff plans from US president Donald Trump that some fear could slow global growth and boost inflation.
The pan-European Stoxx 600 index closed 0.5 per cent lower, with Germany’s trade-sensitive DAX falling 0.7 per cent.
DUBLIN
The Iseq All-Share index managed to end the session 0.2 per cent higher to 10,370.77, helped by advances by some heavyweights, including Ryanair, which rose 0.7 per cent to €19.20, as it rallied from a recent dip, and Kingspan, which added 2.5 per cent.
Banking stocks were out of sorts, with AIB off 0.5 per cent at €6.10 and Bank of Ireland down 0.6 per cent at €11.14, amid mounting concerns about the impact on the domestic economy from Trump’s protectionist policies.
LONDON
Of Irish interest in London, Dublin-based Greencore rose 0.9 per cent as it agreed to buy rival Bakkavor for £1.2 billion (€1.43 billion). Bakkavor gained 7.9 per cent.
Grafton Group was also in focus, rising 0.8 per cent, as it bought HSS Hire Ireland for almost €32 million.
The FTSE 100 index fell 0.3 per cent. Gains in the pound weighed on the export-focused stock index, as the dollar lost ground in advance of the tariff announcement.
Aerospace and defence stocks led the sectoral declines, down 2.1 per cent.
Rolls-Royce and BAE Systems were among the top losers in the FTSE 100 index, down 3 per cent and nearly 1 per cent, respectively.
Heavyweight healthcare firms fell alongside European peers in advance of the tariffs announcement. The pharma and biotech index fell 1.4 per cent to its lowest close in nearly a month.
AstraZeneca was the biggest drag on the blue-chip index, down 1.2 per cent.
Republican Party strategist John Feehery has told RTÉ News that Trump’s tariffs will be popular with the “working class and not the investor classes and there’s a lot more working class voters than investors”.
Trump’s tariffs on autoworkers will see more car manufacturing returning to the United States, he suggested.
Fox Biz senior columnist Charles Gasparino says the tariffs are really a negotiating ploy by Trump to get trading partners to lower their tariffs.
He is particularly hoping to use the threat of tariffs to get Chinese president Xi Jinping to agree to a US takeover of two Chinese-owned ports in the Panama Canal and also is seeking Xi’s approval of an Amazon takeover of the Chinese social media giant TikTok in the United States.
White House advisers have been spooked, he suggests, by business response to the tariffs. “Business spending is grinding to a halt and price elevation on goods is already happening as markets price in how trade partners react and before deals can be cut,” he says.
“They are warning about stagflation and that markets will remain extremely volatile. That said, if these trade deals can be reached and both sides begin lowering not just tariffs but trade barriers, the effect will be a long-term positive for markets and the economy.”
The realisation is growing too that the tariffs will hurt Trump’s base most, ie farmers and those who use natural gas. US consumers could end up being further hammered by inflation.
The New York Times is suggesting that Trump is mulling over a 20 per cent tariff on all imported goods in to the United States. It would at least have the virtue of clarity and simplicity, but such a blanket charge would cost US households between $3,400 (€3,100) and $4,200 (€3,900) a year.
Trump’s tariffs to date are an average of 12 per cent – the highest level since the second World War, analysts at Deutsche Bank have estimated.
Today’s tariffs could push that figure to 18 per cent or more. That would approach levels seen in the United States in the early 1930s, after the infamous Smoot-Hawley Tariff Act was passed, which helped to deepen the Great Depression by hindering international trade.
We have the first hint of what might be in the world’s most closely guarded secret: Trump’s forthcoming tariff regime.
Sky News political editor Sam Coates is reporting via his colleague Ed Conway that Trump is planning 10 per cent, 15 per cent and 20 per cent tariffs depending on country and by industry. More to follow, we expect.
Politico is reporting that Trump has told his inner circle that Elon Musk will be leaving soon.
Musk has become arguably the most unpopular man in the US, at much detriment to his reputation, through his actions with the so-called Department of Government Efficency (Doge).
He spent $18 million on the Wisconsin Supreme Court race, but Trump’s favoured candidate Brad Schimel was soundly beaten by liberal judge Susan Crawford.
If Trump regards Musk as an electoral liability, the world’s richest man may leave the White House sooner rather than later.
Musk might see his ousting as a blessing in disguise. Tesla, the source of most of his wealth, reported its worst first quarter in three years and its stock price fell by 4 per cent in early trade. Tesla stock has fallen by half since December last year.
The stock rallied with news that Musk might be leaving the White House to concentrate on Tesla again.
The US administration was excoriated last week for Signalgate. Most observers were astonished that the leading lights in the administration including the vice-president JD Vance, the secretary of defence Pete Hegseth and the CIA director John Ratcliffe added the Atlantic journalist Jeffrey Goldberg to a Signal group discussing imminent strikes on Houthi rebels in Yemen. No heads rolled as a result of that security debacle, but the Trump administration seems to have learned from it, as there have been no leaks to date of the much-anticipated tariff regime the US president is about to announce.
As Irish Times managing editor Cliff Taylor writes: “The remarkable thing so far is that the outline of Trump’s package has not leaked out. Not so far anyway. We know that in recent days reports suggest a simpler system than originally hinted at – possibly even the same tariff level of around 20 per cent on all imports in to the US, or most of them.
“But a few hours out the main US media outlets have nothing firm and other governments appear to be in the dark, too. Are the finishing touches still being put to the key decisions? Or has it been kept to a tight team and thus not leaked?
“All the White House has said is that the tariffs will go into effect immediately, which will be hugely disruptive with some goods already in transit to the US. Whether the tariffs do in fact apply from tomorrow morning US time will be one key thing to watch out for tonight.”
Britain’s government will not rush into action to counter any import tariffs announced later on Wednesday by US president Donald Trump because it does not want to risk undermining a possible trade deal with Washington, minister for finance Rachel Reeves said.
“The government has been really clear that we are going to approach this in a clear-headed way and always represent the national interest,” Reeves told lawmakers in parliament.
“It’s why myself and the business and trade secretary met with big UK exporters this morning. They don’t want government to rush into any response because the prize on offer is an economic agreement. We don’t want to do anything that undermines that. We don’t want to get ahead of ourselves.”
Reeves said London would see how other countries respond to Trump’s expected announcement of tariffs before deciding on any retaliatory moves.
The European Union is preparing a package of potential emergency measures to support parts of its economy that could be hit the hardest by US president Donald Trump’s sweeping tariffs, according to a report on Bloomberg.
The European Commission, the EU’s executive arm, is working on short-term economic support proposals to go alongside plans to advance reforms and competitiveness in key sectors as well as to improve the functioning of the bloc’s single market, said the people, who spoke on condition of anonymity.
Trump is set to announce so-called reciprocal tariffs later on Wednesday to strike out against what he considers to be unfair levies on US goods as well as non-tariff barriers, such as domestic regulations and how countries collect taxes, including the bloc’s value-added tax, digital taxes and regulations. The EU says its VAT is a fair, non-discriminatory tax that applies equally to domestic and imported goods.
Any potential EU support measures will depend on what the US announces, one source told Bloomberg.
UK chancellor of the exchequer Rachel Reeves said the UK would not jeopardise the possibility of an economic deal with Donald Trump’s US by “posturing” in response to the president’s tariffs which are set to hit British exports.
The chancellor told MPs she had been speaking to exporters who did not want a rushed response.
She said: “We don’t want to be posturing here, the prize on offer is a good economic agreement between us and the United States.
“We are not going to do anything to put that in jeopardy, we are not going to rush into action to get a quick headline.”
She said she had discussed the situation with European Commission economy chief Valdis Dombrovskis.
The European Union has threatened to push back against Trump’s tariffs; it retaliated against his trade taxes during his first term in the White House.
But Reeves told the UK’s Treasury Committee: “Let’s see how other countries and other trading blocs respond.” She added: “We are discussing with other countries and the EU about the appropriate response to whatever announcements are made later today.”
US president Donald Trump has hailed today as “Liberation Day” for the United States, but Wall Street is less than impressed.
Wall Street’s main indexes fell on Wednesday as investors worried about the potential impact of his tariffs on the global economy, corporate earnings and inflation.
The Dow Jones Industrial Average fell 156.51 points or 0.37 per cent after the opening bell; the S&P 500 lost 26.55 points, or 0.47 per cent, to 5,606.52; and the Nasdaq Composite lost 99.07 points, or 0.57 per cent, to 17,350.82.
The Government’s strategy in response to the US trade tariffs is “to optimise the protection of Irish jobs”, Taoiseach Micheál Martin has said.
It was a “fundamental objective”, he said, adding: “It’s clear that the scale of these tariffs will be very, very significant in European terms.”
Part of the approach in any countermeasures will be, “Can we get this to a negotiating table to get a reasonable settlement pattern?”
The “bottom line” is “to get this into a sustainable landing zone ... negotiations are key”, he said.
Why is the Government so fearful about a 25 per cent tariff on pharmaceuticals? Of the €224 billion in estimated exports last year, €99.9 billion was for pharmaceutical and medical products. Of that €99.9 billion, €44 billion went directly to the United States. The aforementioned statistical graph from the Central Statistics Office shows the dominance of chemical products (mostly medicines) in the Irish export portfolio.
Any European Union retaliation to Donald Trump’s tariffs will be “negative” for European economies, but worsening relations between Europe and the US present an opportunity for the bloc to become more independent, the European Central Bank (ECB) president told Irish radio on Wednesday morning.
Christine Lagarde, who is in Dublin to receive an award, was speaking on The Pat Kenny Show on Newstalk, hours before the US president is expected to unveil a sweeping package of tariffs that could upend global trade.
The French politician said that “predictability is in very short supply at the moment” concerning US trade and foreign policy. “I don’t think I have ever mentioned the word ‘uncertainty’ as many times as I have in this last few weeks.” Our report is here.
