Trump announces that his American Golden Age will begin with countertariffs. Politicians and economists are concerned about how he reached these numbers and the threats to Irish industry.
At 9:30 PM IST, United States President Donald J. Trump began his speech on America's "Liberation Day." This day supposedly marks the day industry is reborn, remade, and America is again wealthy, referring to the US's history of protectionism from 1789 to 1913. Liberation Day, Trump states, is to bring heavy "reciprocal" tariffs globally.
In a 50-minute speech, Trump said he would impose "reciprocal" tariffs. He explained that these tariffs are implemented in response to other countries' current tariffs and refusal to buy American-made goods. Critics such as economist Paul Krugman stated, "The left column [of the graph Trump presented on stage] shows the tariffs others are supposedly charging on US products — and it's completely crazy… The EU, like the United States, has generally low tariffs… So where does this 39 per cent number come from? I have no idea." Countries are being hit with a baseline of 10% tariffs; the European Union, with a supposed 39%, will be hit with a 20% general tariff.
A significant aircraft and pharmaceutical exporter, Ireland relies on trade with the United States. The Central Statistics Office released this week that Ireland has a 50 billion trade surplus with the United States; tariffs in this case would make the cost of exporting to the United States exponential. Along with this, controversy over trade between the United Kingdom and Ireland is a key focus for the Irish government, as the United Kingdom has been given a better tariff policy of only 10%, which is leading some to state that Northern Ireland businesses may be in the crossfire of this trade war.
However, Trump isn’t stopping at tariffs, as he claims that multiple companies will begin the production and construction of factories in the United States, affirming that these companies growing domestically will minimise the negative effects of tariffs. Donald Trump calls out the Republic of Ireland. He states that while America is unable to produce enough antibiotics for its people, Ireland is selling pharmaceuticals at a high tariff. He claims that companies that work out of Ireland, namely Johnson and Johnson and Ely Lily, are committed to open investments in production within the United States. Currently, these companies will be exempt from the tariffs on Ireland.
In Ireland, the effects are already being felt. Michael Lohan, the chief executive of the Industrial Development Agency, stated that capital infrastructure spending has already dropped 30-35%. Politicians and economists alike are in a state of preparation following these announcements. Ian Talbot, Secretary General of the Internal Chamber of Commerce (ICC), stated, "To navigate these challenges effectively, we should prioritise strategies that (a) enhance our competitiveness and (b) strengthen our trade engagement, rather than escalating tensions."
Taoiseach Micheál Martain stated that Ireland must get on a "negotiation pathway" with the United States and stated his priority "is to protect Irish jobs and the Irish economy.” The response from Europe is soon to come, as Tánaiste Simon Harris said he will be going to Luxembourg on Monday with the EU Foreign Affairs Council to discuss a "collective response."