Tánaiste and Trade Minister Simon Harris is set to warn cabinet colleagues this morning that US President Donald Trump’s threatened 30% tariff on EU goods could accelerate potential job losses in Ireland, as the government pledges full support for continued EU negotiations.
Harris will inform ministers that current economic projections indicate a serious negative impact on Irish economic performance if the tariffs are implemented. The warning comes as the August 1 deadline approaches for reaching a trade deal between the EU and United States.
EU Trade Commissioner Maroš Šefčovič has described the proposed 30% blanket tariff as potentially making trade between the two markets “virtually impossible,” warning that Europe would respond firmly with measures affecting €72 billion worth of American goods.
While Finance Minister Paschal Donohoe previously suggested tariffs would slow job creation rather than directly cause cuts, the escalation to 30% represents a significantly more serious threat to Ireland’s economic outlook. The government had earlier indicated the Irish economy could withstand 10% tariffs with slower growth, but the tripled rate poses far greater challenges.
Šefčovič expressed frustration that negotiating teams were “moving towards finalising a deal last week” before Trump’s latest threat, though he confirmed American negotiators remain engaged in talks. “We are showing an enormous patience and enormous creativity to find solutions, but if it reaches 30+%, quite simply, the trading as we know it will not continue,” he stated.
The government has acknowledged that tariffs may influence Budget 2026 measures, with business group Ibec calling for addressing employer PRSI, trade supports, and commercial energy costs to avoid tax-related disincentives for job creation amid the tariff uncertainty.
The high-stakes situation underscores Ireland’s vulnerability to transatlantic trade tensions despite its strong economic fundamentals.