Trade war concept, USA flag against European flag, on dry cracked earth background

OPINION: In a trade war, there are no winners - Minister Thomas Byrne

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Trade war concept, USA flag against European flag, on dry cracked earth background Ruslan Olinchuk

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Thomas Byrne Fianna Fáil Picture Conor McCabe Photography.

Published: Sat 19 Apr 2025, 11:05 AM

Last updated: Sat 19 Apr 2025, 11:06 AM

On 11th September 1996, a Meath man stood before a joint meeting of the US Congress, to deliver a speech on Ireland’s behalf. In that speech, the late John Bruton declared that “the European Union has undermined the economic base of that force that causes wars: national chauvinism”.

Today, the European Union unfortunately finds itself facing a trade war with the United States, because of the tariffs advocated by President Trump.

Nobody wins from tariffs. From Leinster House to the White House, every one of us that holds public office has a duty to improve the lives of those we serve. The proposed Trump tariffs are most regrettable because they will not result in better livelihoods for anyone – especially American taxpayers.

While the Irish Government and the EU did not want to find ourselves in this position, we have been actively preparing for the prospect of the Trump tariffs. As recent events have demonstrated, our collective response has not been kneejerk. We will not be governed by daily headlines. Ireland and the EU have responded in a calm, strategic and measured fashion.

I do not want to obscure the reality that if a 20 per cent blanket tariff goes ahead on most goods, it will have a significant impact on Irish investment and the wider economy. The Trump tariffs pose a serious risk to our economy but there is always time to strike a fair deal, and the Government welcomes the suspension of the higher 20 per cent tariffs by President Trump for a period of 90 days.

When John Bruton addressed the Joint Houses of Congress, Ireland held the Presidency of the Council of the European Union. Some 30 years on from this address, in the second half of 2026, Ireland will once again hold the EU Presidency.

This will be a significant moment for our country and in reflecting on those three decades, the over-arching theme that occurs to me is one of progress, and our EU membership has acted as a foundation of that progress.

The economic success that our country enjoys did not happen by chance. Whatever the well-worn rhetoric, it did not happen solely because of our corporation tax rate. Ireland offers businesses and investors a stable environment in which to do business, and our commitment as a state to the principles of free and open trade remains unwavering.

In 2024, Ireland ranked in fourth place among 67 economies, measured for their global competitiveness in the 2024 IMD World Competitiveness Ranking. This is the second consecutive year in which Ireland has placed in the top five economies globally. The Government is not complacent however and we will continue to promote our competitiveness as a location for investment.

When Ireland takes the EU Presidency next year, we will also push a pro-business agenda that is focused on making business simpler and ensuring that business is not over-burdened by a regulatory lasagne, with layers upon layers of regulations preventing the ability of business to innovate and grow.

Ireland is of course an all-island economy. Brexit brought home just how integrated the supply chains on our island are. If the higher tariffs announced by President Trump go ahead after the 90-day pause, the Government is very conscious that his proposed higher tariffs would not affect the UK in the same manner.

As European Affairs Minister, I am actively engaging with my colleagues across our shared union, to ensure that Ireland’s interests are promoted and secured. A Team Ireland effort is underway from Dublin to Brussels to Washington DC and beyond to protect Irish businesses and jobs.

Brexit and the Covid-19 pandemic demonstrated our resilience as a country. Under the leadership of Taoiseach Micheál Martin, we came through the Covid-19 pandemic, and I am confident that we can overcome this serious challenge through negotiation and the collective strength of our European Union.