'Days of America being ripped off are over' - White House confirms Trump will go ahead with tariffs
US President Donald Trump is expected to unveil full details of the tariffs at 9pm Irish timeAccording to reports, aides are considering a plan that would raise duties on products by about 20pc from nearly every country, rather than targeting certain countries or products.But a large amount of uncertainty remains on whether country-specific tariffs will be appliedFollow the latest in our live blog below:
Tariffs are taxes placed on imports from other countries. Who pays them?
Irish Independent Newsdesk
Key updates
Trump insists things 'going very well' despite US stock market hammering after tariff announcement
The plunging dollar shows that US is heading for a crash, and that will be bad news for Ireland
Ireland urges EU to exempt US food and alcohol from tariffs to avoid retaliation
Donald Trump makes tariffs announcement including 25pc on auto imports
Amy Blaney
Ibec warns Irish workers could be put on short-time 'from this weekend'
Ireland is expecting moderate interim EU tariffs on US goods next week, coupled with an offer of negotiations, after China opted to meet fire with fire.
Chinese president Xi Jinping announced 34pc retaliatory tariffs that incensed US president Donald Trump, perhaps opening the door to the EU to attempt a softer initial response and a call for talks.
Irish employers and unions yesterday emphasised the seriousness of situation in a consultation with the Government – and were told of the Coalition’s “intense focus on finding a negotiated solution”.
But Tánaiste Simon Harris said after a meeting of the Government’s new consultative Trade Forum – at which Ibec predicted short-time working from this weekend and further lay offs later – that Ireland had to be ready for escalations.
“I have to be honest, I do expect measures on pharma to follow,” Mr Harris said, calling instead for “talks, not tariffs”.
The EU wanted to negotiate and de-escalate, he said, but admitted there was a chance of further Trump impositions.
It also has to be a “working assumption that US tariffs are here to stay”, Mr Harris said.
“There is a fundamental shift in the global trading environment. The Government stands ready to support businesses and to assist workers,” he added.
This came after Ibec criticised a lack of “oven-ready” supports, even though Covid-style measures may yet be called on.
Ibec chief executive Danny McCoy warned after the meeting: “If demand is likely to dry up, then you have an excess supply of both product and workers.”
He predicted the staffing cutbacks “because the impact on demand for products, and for people that are selling them, will be immediate”.
As a result, there would be short-time working from this weekend, he said, because of the expected slowdown for “fast-moving consumer goods, like our drinks industry, for instance”.
Mr Harris said: “We continue to monitor the situation in terms of the impact on the Irish economy on a very regular basis. I think we have to take the Trump administration at its word. I do expect measures on pharma to follow.”
He insisted Ireland had employment supports in place, and others that could be deployed as the situation demanded.
“There’s the short-term employment, ensuring people can access supports if put on reduced hours. I said at the Trade Forum that Government stands ready to assist business and workers,” he said.
He also said he was satisfied that other EU member states would be cognisant of Ireland’s exposed position when counter-measures are approved.
The EU retaliation is expected to be agreed at a meeting of trade ministers in Luxembourg on Monday, with different sets of options already drawn up.
Meanwhile, Siptu has called for a taskforce to protect thousands of jobs such as in the medical devices industry.
Siptu spokesman Neil McGowan said the sector was “a significant employer”, with many manufacturing facilities along the Atlantic coast that were crucial to the local economy.
“While much attention has been paid to pharma, this threat is now a reality for the over 7,000 of our members producing medical devices,” he said, calling for wage subsidy programmes.
Mr Harris said trade between the EU and US was worth €1.6tn annually and could not be replaced by EU free trade agreements with India or anyone else.
The Tánaiste said Mr Trump had campaigned on the high cost of living, and “I’m not sure how he can square the circle” of what his trade war would now do to consumer prices.
Mr Harris welcomed the strategic dialogues European Commission president Ursula von der Leyen is to have with the pharma industry.
“I think the dialogue with the pharma sector is on Tuesday, and it also proves the point that it’s not just Ireland when it comes to pharma,” he said.
“It is a very big and important part of the European economy, and European and global supply chains.”
Twelve EU countries have significant pharma industries, although Ireland’s has the largest links with the US.
“There are a number of fundamental truths that remain the truth, regardless of the position of President Trump,” Mr Harris said, adding that some Irish locations had been a good home to US pharma for 70 years.
“The pharma companies know Ireland well. The companies tell us of the positive experience they have. That’s the reason they’re here.
“They have access to a market of 450 million consumers. For many of them, six out of 10 products are going to the European Union.” On the wider picture, Mr Harris said: “What we’re going to do is control those things we can control.
“We can take a number of decisions in the days ahead to continue to boost our competitiveness and our productivity, and therefore make them an even more compelling offering.”
He stressed again that Ireland now had full employment, budget surpluses and hundreds of millions stashed away in rainy-day funds.
“We will get through this,” the Tánaiste added.
Senan Molony
Chinese president Xi Jinping announced 34pc retaliatory tariffs that incensed US president Donald Trump, perhaps opening the door to the EU to attempt a softer initial response and a call for talks.
Irish employers and unions yesterday emphasised the seriousness of situation in a consultation with the Government – and were told of the Coalition’s “intense focus on finding a negotiated solution”.
But Tánaiste Simon Harris said after a meeting of the Government’s new consultative Trade Forum – at which Ibec predicted short-time working from this weekend and further lay offs later – that Ireland had to be ready for escalations.
“I have to be honest, I do expect measures on pharma to follow,” Mr Harris said, calling instead for “talks, not tariffs”.
The EU wanted to negotiate and de-escalate, he said, but admitted there was a chance of further Trump impositions.
It also has to be a “working assumption that US tariffs are here to stay”, Mr Harris said.
“There is a fundamental shift in the global trading environment. The Government stands ready to support businesses and to assist workers,” he added.
This came after Ibec criticised a lack of “oven-ready” supports, even though Covid-style measures may yet be called on.
Ibec chief executive Danny McCoy warned after the meeting: “If demand is likely to dry up, then you have an excess supply of both product and workers.”
He predicted the staffing cutbacks “because the impact on demand for products, and for people that are selling them, will be immediate”.
As a result, there would be short-time working from this weekend, he said, because of the expected slowdown for “fast-moving consumer goods, like our drinks industry, for instance”.
Mr Harris said: “We continue to monitor the situation in terms of the impact on the Irish economy on a very regular basis. I think we have to take the Trump administration at its word. I do expect measures on pharma to follow.”
He insisted Ireland had employment supports in place, and others that could be deployed as the situation demanded.
“There’s the short-term employment, ensuring people can access supports if put on reduced hours. I said at the Trade Forum that Government stands ready to assist business and workers,” he said.
He also said he was satisfied that other EU member states would be cognisant of Ireland’s exposed position when counter-measures are approved.
The EU retaliation is expected to be agreed at a meeting of trade ministers in Luxembourg on Monday, with different sets of options already drawn up.
Meanwhile, Siptu has called for a taskforce to protect thousands of jobs such as in the medical devices industry.
Siptu spokesman Neil McGowan said the sector was “a significant employer”, with many manufacturing facilities along the Atlantic coast that were crucial to the local economy.
“While much attention has been paid to pharma, this threat is now a reality for the over 7,000 of our members producing medical devices,” he said, calling for wage subsidy programmes.
Mr Harris said trade between the EU and US was worth €1.6tn annually and could not be replaced by EU free trade agreements with India or anyone else.
The Tánaiste said Mr Trump had campaigned on the high cost of living, and “I’m not sure how he can square the circle” of what his trade war would now do to consumer prices.
Mr Harris welcomed the strategic dialogues European Commission president Ursula von der Leyen is to have with the pharma industry.
“I think the dialogue with the pharma sector is on Tuesday, and it also proves the point that it’s not just Ireland when it comes to pharma,” he said.
“It is a very big and important part of the European economy, and European and global supply chains.”
Twelve EU countries have significant pharma industries, although Ireland’s has the largest links with the US.
“There are a number of fundamental truths that remain the truth, regardless of the position of President Trump,” Mr Harris said, adding that some Irish locations had been a good home to US pharma for 70 years.
“The pharma companies know Ireland well. The companies tell us of the positive experience they have. That’s the reason they’re here.
“They have access to a market of 450 million consumers. For many of them, six out of 10 products are going to the European Union.” On the wider picture, Mr Harris said: “What we’re going to do is control those things we can control.
“We can take a number of decisions in the days ahead to continue to boost our competitiveness and our productivity, and therefore make them an even more compelling offering.”
He stressed again that Ireland now had full employment, budget surpluses and hundreds of millions stashed away in rainy-day funds.
“We will get through this,” the Tánaiste added.
Senan Molony
Alan Caulfield
Stocks wipeout heads for $5tn as tariffs raise expectations of a global recession
Alan Caulfield
California governor pleads with allies to exempt his state from tariffs
Governor Gavin Newsom said he's seeking exemptions for California-made products from retaliatory tariffs and wants to open talks with global allies over new trade relationships, casting the state as a buffer against the fallout of Donald Trump's sweeping tariff plan.
In a post on X on Friday, Newsom said that he has directed his administration to reassure allies that "California remains a stable trading partner," even as Trump pushes for a 10% across-the-board tariff on imports and steeper tariffs for some nations.
"Donald Trump's tariffs do not represent all Americans," Newsom said. "TO OUR TRADING PARTNERS AROUND THE GLOBE — California is here and ready to talk."
When contacted for comment, Newsom's office declined to provide specifics on outreach to countries or policies his administration is pursuing. His office didn't provide additional details on how California would navigate the constitutional limits on states negotiating their own trade terms. While Newsom cannot enter binding international agreements with foreign nations, the governor can pursue informal partnerships and export promotion efforts such as state-led trade missions.
Newsom said during the latest episode of his podcast, This is Gavin Newsom, released on Friday that foreign leaders had contacted him ahead of Trump's tariff announcement this week.
"Foreign leaders have reached directly out to California to express that anxiety and concern from a sub-national level, and look to engage us directly with all the volatility and the uncertainty," Newsom told guest Anthony Scaramucci, founder of SkyBridge Capital who briefly was Trump's communications director in 2017.
Newsom, a Democrat, is considered a likely candidate to run for president in 2028.
California accounts for roughly 14% of the nation's gross domestic product and ranks as the fifth-largest economy in the world. Newsom said that economic weight, paired with the state's population of 40 million, gives California leverage on the global stage.
But it also makes California more vulnerable to global trade disruptions, particularly as major US trading partners begin to retaliate. On Friday, China announced it would impose a 34% tariff on all US imports starting April 10, mirroring the rate of Trump's proposed "reciprocal" tariffs. A day earlier, Canada said it would tax US auto imports in response to Trump's move to slap new tariffs on foreign-made cars.
The state is a key player in agriculture and US manufacturing, including semiconductors, computer equipment and vehicles and sectors that are being targeted in the trade dispute.
California exported $24 billion in agricultural goods in 2022, nearly 13% of total US farm exports. Almonds topped the list at $4.7 billion, followed by dairy products, pistachios and wine. Top buyers include Canada, the European Union, China and Hong Kong.
Richard Kreps, head of the American Pistachio Growers industry group, said growers are in regular contact with California's Republican congressional delegation to shape trade policy around the crop. He was skeptical of Newsom's latest push.
"It's just platitudes until there's action," said Kreps. "There's two different groups of people in agriculture right now - those that are in panic mode and those of us that know we still have four-and-a-half months before we have to harvest."
In the X post, Newsom linked to a Fox News report citing a senior administration official who said the state is concerned about rising rebuilding costs after January's wildfires around Los Angeles and the potential for trade disruptions in the California-Baja border region.
Much of the manufacturing in that area depends on cross-border supply chains, where components often travel back and forth between factories several times before becoming finished products.
Bloomberg
Amy Blaney
Vietnam ready to cut tariffs to zero and asks US to do same
Vietnam is ready to discuss with the United States cutting its tariffs on American goods to zero and has asked the U.S. to do the same with Vietnamese goods, state media reported on Friday, citing remarks by Communist Party leader To Lam in a phone call with U.S. President Donald Trump.
To Lam and Trump have said they would discuss a bilateral agreement soon, the official Vietnam News Agency reported. Lam invited Trump to visit Vietnam, and Trump accepted, the report added.
Reuters
Reuters
Amy Blaney
Israel's Netanyahu has spoken to Trump about tariffs, officials say
Israeli Prime Minister Benjamin Netanyahu has spoken with U.S. President Donald Trump about his new tariff policy, two senior Israeli officials said on Friday, as Israel seeks to minimise the impact of the threatened U.S. measures.
As part of a sweeping new tariff policy announced by Trump, unspecified Israeli goods exports to the United States face a 17pc tariff. The U.S. is Israel's closest ally and largest single trading partner.
Netanyahu raised the issue in his phone call with Trump on Thursday, the Israeli officials said, while on a visit to Hungary. "Most of it can be solved," one of the senior officials said.
An Israeli finance ministry official said on Thursday that Trump's latest tariff announcement could impact Israel's exports of machinery and medical equipment.
Israel had already moved to cancel its remaining tariffs on U.S. imports on Tuesday. The two countries signed a free trade agreement 40 years ago and around 98pc of goods from the U.S. are now tax-free.
Reuters
As part of a sweeping new tariff policy announced by Trump, unspecified Israeli goods exports to the United States face a 17pc tariff. The U.S. is Israel's closest ally and largest single trading partner.
Netanyahu raised the issue in his phone call with Trump on Thursday, the Israeli officials said, while on a visit to Hungary. "Most of it can be solved," one of the senior officials said.
An Israeli finance ministry official said on Thursday that Trump's latest tariff announcement could impact Israel's exports of machinery and medical equipment.
Israel had already moved to cancel its remaining tariffs on U.S. imports on Tuesday. The two countries signed a free trade agreement 40 years ago and around 98pc of goods from the U.S. are now tax-free.
Reuters
Amy Blaney
"I have to be honest - I do expect measures on pharma to follow," Tánaiste Simon Harris has said in Dublin following a meeting of his consultative Trade Forum.
He called for "talks, not tariffs" and said the European Union wanted to negotiate and de-escalate, but admitted there was a chance of further Trump impositions.
It also has to be a "working assumption that US tariffs are here to stay," Mr Harris said.
"There is a fundamental shift in the global trading environment."
But he added: "The Government stands ready to support busienses and to assist workers."
He also said he was satistied that other member states would be cognisant of Ireland's exposed position then counter measures are approved.
The EU retaliation is expected to be agreed at a meeting of trade ministers in Luxembourg on Monday, with different sets of options already drawn up.
Mr Harris said that the trade between the EU and US was worth €1.6 trillion annually, and could not be replaced by EU free trade agreements with India or anyone else.
The Tánaiste said President Trump had campaigned on the high cost of living, and "I'm not sure how he can square the circle" of what his trade war would now do to consumer prices.
Mr Harris welcomed she strategic dialogues that European Commission President Ursual von der Leyen is to have the industry.
"I think the dialogue with the pharma sector is on Tuesday, and it also proves the point that it's not just Ireland when it comes to pharma.
"It is a very big and important part of the European economy, and European and global supply chains." Twelve EU countries have significant pharma industries, although Ireland's has the largest links with the United States.
"There are a number of fundamental truths that remain the truth, regardless of the position of President Trump."
Some Irish locations have been a good home to US pharms for 70 years, he said. " The pharma companies know Ireland well.
"They companies tell us of the positive experience they have. That's the reason they're here. They have access to a market of 450 million consumers.
"For many of them, six out of ten products are going to the European Union."
On the wider picture, he said: "What we're going to do is control those things we canm control.
"We can take a number of decisions in the days ahead to continue to boost our competitiveness and our productivity, and therefore make them an even more compelling offering."
He stressed again that Ireland has full employment, budget surpluses and hundreds of millions stashed away in rainy-day funds. "We will get through this."
Senan Molony
He called for "talks, not tariffs" and said the European Union wanted to negotiate and de-escalate, but admitted there was a chance of further Trump impositions.
It also has to be a "working assumption that US tariffs are here to stay," Mr Harris said.
"There is a fundamental shift in the global trading environment."
But he added: "The Government stands ready to support busienses and to assist workers."
He also said he was satistied that other member states would be cognisant of Ireland's exposed position then counter measures are approved.
The EU retaliation is expected to be agreed at a meeting of trade ministers in Luxembourg on Monday, with different sets of options already drawn up.
Mr Harris said that the trade between the EU and US was worth €1.6 trillion annually, and could not be replaced by EU free trade agreements with India or anyone else.
The Tánaiste said President Trump had campaigned on the high cost of living, and "I'm not sure how he can square the circle" of what his trade war would now do to consumer prices.
Mr Harris welcomed she strategic dialogues that European Commission President Ursual von der Leyen is to have the industry.
"I think the dialogue with the pharma sector is on Tuesday, and it also proves the point that it's not just Ireland when it comes to pharma.
"It is a very big and important part of the European economy, and European and global supply chains." Twelve EU countries have significant pharma industries, although Ireland's has the largest links with the United States.
"There are a number of fundamental truths that remain the truth, regardless of the position of President Trump."
Some Irish locations have been a good home to US pharms for 70 years, he said. " The pharma companies know Ireland well.
"They companies tell us of the positive experience they have. That's the reason they're here. They have access to a market of 450 million consumers.
"For many of them, six out of ten products are going to the European Union."
On the wider picture, he said: "What we're going to do is control those things we canm control.
"We can take a number of decisions in the days ahead to continue to boost our competitiveness and our productivity, and therefore make them an even more compelling offering."
He stressed again that Ireland has full employment, budget surpluses and hundreds of millions stashed away in rainy-day funds. "We will get through this."
Senan Molony
Amy Blaney
Trade with India and Canada will not make up for impacts of tariffs in the US, says Simon Harris
Other trade opportunities with countries like India and the ratification of the EU-Canada Comprehensive Trade Agreement will not make up for the impact of the tariff dispute with the US in the near future, Irish deputy premier Simon Harris has said.
Asked if these other trade deals would alleviate the hit on the Irish economy, Mr Harris said: “No, it wouldn’t – certainly not in the short term.
“Obviously, establishing a presence in new markets takes time, and negotiating agreements takes time.
“It’s a sensible thing to do – and perhaps over time it would – but the scale of the economic relationship between not just Ireland and the US, the US and the EU, is so huge that it can’t be dismissed.
“It can’t be dismissed by the US either, it doesn’t matter who the president is or what their political philosophy is.
“If you have a trading relationship in goods and services worth about 1.6 trillion euro a year between the EU and the US, that’s massive. And it’s the largest trading relationship that exists.”
PA
PA
Eoghan Moloney
Nasdaq set to confirm bear market as Trump tariffs trigger recession fears
The tech-heavy Nasdaq Composite index was set to confirm it was in a bear market on Friday, down more than 20pc from a recent record high, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.
Trump on April 2 slapped a 10pc baseline tariff on all imports to the United States along with heavy levies on tech production hubs such as China, Taiwan and Vietnam, deepening a selloff triggered by concerns about AI spending that had pushed Nasdaq into correction territory earlier last month.
The index .IXICfell 2.8pc on Friday, after China announced additional tariffs of 34pc on U.S. goods in the most serious escalation.
The Nasdaq Composite index slumped about 20pc from its December 16 record closing high of 20,173.89. A bear market is confirmed when an index closes down at least 20pc from its most recent record high finish, according to a widely used definition.
Reuters
Reuters
Amy Blaney
Simon Harris says EU must avoid 'spiral of escalation' in tariff dispute
Simon Harris has said the EU must seek to avoid a “spiral of escalation” in the tariff dispute with the US
The Tanaiste stressed the importance of maintaining unity within the European Union as he praised the bloc’s “calm” and “measured” response to date.
Asked about the potential for tit-for-tat moves that would see both the US and EU introduce further tariff increases, Mr Harris insisted European leaders had already shown restraint and a reluctance to engage in such tactics.
“Our approach is not to seek to provoke or escalate,” he told reporters at Government Buildings in Dublin.
“It’s to seek to de-escalate and seek to engage. Of course, the European Union will have to respond if there isn’t a willingness to engage. Of course we will, but that’s not the preference.”
Mr Harris added: “The risk of a spiral of escalation is there, and we should all seek to avoid that.”
Simon Harris said President Donald Trump’s announcement on tariffs had delivered a “moment of chaos”.
“I think we’ve seen economic turmoil in relation to the markets already in the United States, and I think that is a real vindication of what I and others have consistently said – that tariffs are bad news for the economy, they’re bad news for consumers, they’re bad news on this side of the Atlantic, but they’re also bad news on the other side of the Atlantic as well,” the Tanaiste said.
“In fairness to the European Union though, it’s done the exact opposite of tit-for-tat.
“If we look at this objectively, we have been provoked in Europe on at least three occasions. Firstly, with the tariffs on steel and aluminium – a hit to the European economy of in and around €25/26 billion.
“Secondly, with the tariffs on cars, which of course push up the cost of cars for everyone, but have real impacts on the likes of Slovakia, Germany and others – estimated cost of around €75/76 billion, and then after the Rose Garden press conference – it that’s what it was – you have further impact of around €380 billion.
“So despite the steel and aluminium, despite the cars, and despite the Rose Garden, the response from the European Commission and member states hasn’t been to react in anger, hasn’t been to seek to escalate, it’s been on each occasion to say, ‘can we now talk? can we now engage?’”
PA
Amy Blaney
'My policies will never change' - Trump tells investors
U.S. President Donald Trump on Friday told investors who he said were investing money in the United States that his policies would never change, as global stock markets tumbled for a second day following his announced tariff plan and China's retaliatory measures.
"To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!" he wrote in all caps in a post on his social media platform.
Reuters
"To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!" he wrote in all caps in a post on his social media platform.
Reuters
Eoghan Moloney
Government urged to set up taskforce to protect over 7,000 jobs in medical device manufacturing industry
The government has been urged to set up a taskforce to protect thousands of jobs as the medical devices industry is hit with US tariffs.
Siptu said the proposed taskforce would come up with strategies to protect production and jobs.
Neill McGowan, Manufacturing Divisional Organiser, said the medical devices manufacturing sector is a significant employer.
He said many major manufacturing facilities are located along the Atlantic coast and are crucial to the local economy.
“This sector relies on globalised supply chains and produces products which are nearly exclusively for the international market,” he said.
“While much attention has been paid to the pharma manufacturing sector and the impact of possible future tariffs on it, this threat is now a reality for the over 7,000 of our members producing medical devices.”
He called for options including wage subsidy programmes to be rolled out.
They would be similar to schemes introduced during the Covid pandemic and aim to assist companies where turnover fell dramatically due to a reliance on the US market.
“In the full likelihood that the current economic crisis brought about by the sharp change in US economic policy will continue for some time, a scheme based upon that operated in Germany of subsidies for shortened working weeks should be considered,” he said. “All these measures will aim to protect production, jobs and local economies while we deal with an erratic US administration.”
Anne-Marie Walsh
Anne-Marie Walsh
Eoghan Moloney
World shares plunged into correction territory as China strikes back in trade war
The main global stock market index fell into 'correction' territory on Friday as China hit back at the sweeping trade tariffs announced by US President Donald Trump this week.
MSCI's All Country World Index, which includes 2,645 companies, was down more than 1pc on day the after Beijing had said it would put additional tariffs of 34pc on all U.S. goods and slap curbs on exports of some key rare earths.
The drop was expected to increase when Wall Street trading resumes, futures indicated. But the falls already meant it had lost 10pc since hitting a record high in February, a threshold traditionally classed as a 'correction' by market analysts.
Reuters
Reuters
Amy Blaney
Trump tariff hit to Irish economy will be temporary, says Davy
A slowdown in economic growth now appears likely due to tariffs, but there should be no lasting damage to the Irish economy, according to a new analysis by Davy Research.
One reason why the Irish economy is well placed to survive the shock of Donald Trump’s 20pc tariff on the EU is because households, businesses and the Government all have strong balance sheets. For example, households’ net financial assets have grown by 434pc since the financial crash of 2008, while the Government’s net debt has almost halved over the past decade.
Read more by John Burns here:
Read more by John Burns here:
Eoghan Moloney
'Workers need to be protected' - trade unions on tariff fears
ICTU's Owen Reidy has said jobs need to be protected and workers directly impacted need bespoke unemployment benefit.
On his way into a meeting of the Labour Employer Economic Forum, Mr Reidy added that tax cuts should be ruled out.
"The first thing is, we need to protect jobs and as many jobs as possible. So we need a bespoke, specific pay related unemployment benefit for these sectors that will be disproportionately affected.
"The second thing, I think, is this is going to affect our fiscal area, our tax base, our public services. So I think we need to rule out tax, tax cuts over the next period," he said.
Mr Reidy also said Ireland needed to wean itself off foreign direct investment.
"I think in the long term, whilst FDI has been very welcome, it's been good for Irish workers, good for business, good for the economy, we need to wean our disproportionate reliance on it off," he said.
Eoghan Moloney
"This is probably the biggest impact on trade in over 100 years" says Minister Jack Chambers
Eoghan Moloney
Public Expenditure Minister Jack Chambers has said the world hasn't see an impact to trade like that announced by President Trump in over 100 years.
He added that it will impact the lives of ordinary people.
"We know the serious impact that the Trump administration's tariffs have had on particularly US markets, and how this is going to manifest itself at increased costs, higher inflation, and real detrimental impact for workers and citizens, not only in the US, but also across the world," Mr Chambers said.
"I said yesterday, this is probably the biggest impact on trade in over 100 years, and I think we are going to see that manifest and crystallise in the lives of ordinary people, particularly in the US, who rely on that integrated supply chain and trade," he added.
Eoghan Moloney
Breaking: China retaliates in global trade war with 34pc tariffs on US goods
China announced additional tariffs of 34pc on US goods on Friday, the most serious escalation in a trade war with President Donald Trump that has fed fears of a recession and triggered a global stock market rout.
Beijing also announced it was adding several US entities to an export control list and classifying others as an "unreliable" entity.
Nations from Canada to China have readied retaliation in an escalating trade war after Trump raised US tariff barriers to their highest level in more than a century this week, leading to a plunge in world financial markets.
In Japan, one of United States' top trading partners, Prime Minister Shigeru Ishiba said that the tariffs had created a "national crisis" as a plunge in banking shares on Friday set Tokyo's stock market on course for its worst week in years.
Investment bank JP Morgan said it now sees a 60pc chance of the global economy entering recession by year end, up from 40pc previously.
Mei Mei Chu, Philip Blenkinsop and Gianluca Lo Nostro
Eoghan Moloney
'There is a strategy that says don't interrupt your enemy when they're fighting with themselves'
The global world is "in shock" after President Trump's trade tariffs announcement said, Ian Talbot, Chief Executive of Chambers Ireland, who added that things could reverse quicker than predicted.
However, he said that Ireland must be prepared.
"There's a risk that there's a global trade restructuring arising from this. If you look at the reaction of things like the US stock market yesterday, clearly, the global world is in shock, so things actually might reverse quicker than we think as well. And that's the unpredictability of the situation we find ourselves in," Mr Talbot said.
Mr Talbot said it was hard to know what the best strategy is to deal with the fallout from these tariffs but that there must be support in place for industries that will be directly impacted.
"It's very hard to know what's the best strategy, but there is a strategy that says don't interrupt your enemy when they're fighting with themselves.
"So there might be a situation where we can just let other people fight the arguments, we sit back for a period of time and don't engage in this, and let's see what happens," he said.
Tabitha Monahan
Tabitha Monahan
Eoghan Moloney
EU cannot fight a trade war with US at Ireland's expense, government warned
Bigger Member States must not fight a trade war at Ireland’s expense, the Government has been warned.
Food exports are the ones earning the revenues that go back into the rural communities that produce that food, says the milk-supply organisation ICMSA.
The agri-food sector is exposed to further tit-for-tat tariffs if the EU gets its retaliation wrong from this country’s point of view, says Denis Drennan, the organisation’s president.
“Ireland’s economy is more open than our counterparts in the EU and we are more dependent than they are on exports,” he says.
“Even within our export sector, it’s pharma and tech that are notably less indigenous — while their exports earnings and tax are invaluable, they don’t reach down to the grassroots in the way that dairy and beef almost literally do”, he said.
The dairy farmer organisation says that a properly-targeted response would mean that “the underlying strength of our products and farmers should ensure that we are well placed to ride this out until the situation become clearer and more stable.”
Mr Drennan said that the reputation of our cheese and butter, especially Kerrygold, stood very high among top-end US consumers.
Mr Drennan said that the reputation of our cheese and butter, especially Kerrygold, stood very high among top-end US consumers.
There is also some confidence that premium products like Kerrygold are ‘inelastic’ in terms of demand and not overly subject to price-pressure.
While he highlighted the underlying strength of our food products, Mr Drennan acknowledged that tariffs did represent a hurdle that “we will deal with, but which we could have done without”.
He stressed the reputational excellence of Irish food and the fact that demand for it was consumer-led.
“Tariffs are always a crude economic tool and it’s disappointing because it comes at a point where the excellence of Irish dairy had really cut through in the US market, he said.
The New York Times recently declared Kerrygold the best butter available in the entire USA.
Mr Drennan said its healthy sales were feed back into the various component co-ops and returning value to farme suppliers.
“That American demand for butter is the principal reason for the lift in milk price that began in the middle of last year after two very hard years,” he said.
“It has alleviated some of the really serious pressures our dairy farmers were under for the previous period.”
He added: “To a degree, the response is out of our hands, but we’d caution the Government against allowing other bigger Member States to fight a trade war at our expense.”
Senan Molony
Senan Molony
Eoghan Moloney
Taoiseach accuses Trump administration of possessing 'misplaced antipathy' towards EU
The Taoiseach said while there EU will focus on negotiations with the US administration going forward, there is an antipathy from the US government towards the EU, which he said was an issue.
"There is an issue there, without doubt, within the US administration. There is antipathy that's not disguised towards the European Union, misplaced, in my view," the Taoiseach said.
"If you take the European Union as a bloc, the trading relationship between it and the US is the biggest in the world," he added.
Tabitha Monahan
Tabitha Monahan
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