Disrupting the "deeply integrated" trade relationship between Europe and the United States "benefits no one", the Taoiseach has said after US President Donald Trump announced a 20% tariff on imports from the EU.
Mr Trump made the announcement in a much-anticipated address from the White House this evening in what he called a "declaration of economic independence".
He said the 20% figure is about half of the EU levy on US goods.
Significant concerns have been raised for specific sectors in Ireland, including the pharmaceutical and spirits industries.
Around 45,000 people are employed by pharmaceutical companies, while €58 billion in pharma and chemicals is exported from Ireland to the US every year.
A fact sheet released by the White House said that pharmaceuticals are not currently subject to the reciprocal tariff, but adds that future good-specific or sector-specific tariffs may be announced.
In a statement following that announcement, Micheál Martin said: "Ireland believes in open and free trade and that the imposition of tariffs is bad for the world economy".
The Fianna Fáil leader said he deeply regrets the move from Mr Trump and sees "no justification" for it.
"We will now reflect with our EU partners on how best to proceed," Mr Martin said.
The decision by the US tonight to impose 20% tariffs on imports from across the European Union is deeply regrettable.
— Micheál Martin (@MichealMartinTD) April 2, 2025
I strongly believe that tariffs benefit no one.
My priority, and that of the government, is to protect Irish jobs and the Irish economy. pic.twitter.com/L2dc6jnzOO
"As I agreed with [European Commission] President [Ursula] 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," he added.
"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.
He also said that there "is no doubt that the imposition of tariffs by the US will have an adverse impact" on the Irish economy.
Meanwhile, Ms von der Leyen will deliver a statement tomorrow at 5am Brussels time (4am Irish time) following the announcement of new global tariffs by the US, according to a European Commission statement.
'Collective response' to be discussed at foreign affairs meeting
Tánaiste Simon Harris said: "There are no winners when it comes to tariffs - they are bad for consumers, put jobs at risk, and drive up costs and uncertainty for business."
He said the Government have been "actively preparing for this possibility for some time".
"As we have been doing all along, we 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," he said.
"Together with my government colleagues, my officials and the EU we will be reviewing the situation and the best way to respond in the coming hours and days.
"The EU will have to respond in a proportionate manner which protects our citizens, our workers and our businesses," Mr Harris said.
He added that he will attend a meeting of the EU Foreign Affairs Council on Trade in Luxembourg on Monday to discuss the "collective response" with EU Trade Commissioner Maroš Šefčovič.
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Meanwhile, Sinn Féin leader Mary Lou McDonald has said the Government "needs to do better at what is within their control - supporting domestic businesses, investing in infrastructure and sorting out housing."
In a post on X she said "getting these things right has never been more important".
The Labour Party's finance spokesperson has said there is a "huge amount at stake for jobs in Ireland and across the EU" following the announcement by Mr Trump.
Ged Nash said in a statement that "there is an enormous responsibility on the Government and the EU to fully digest what's been announced, and be strategic in how we respond".
He added that work is needed to "build up our indigenous enterprise sector and to diversify markets for Irish goods and services."
Competitiveness of Irish products to be hit - IFA
The difference between the 20% tariffs imposed on the EU and 10% tariffs on countries such as New Zealand and the UK will impact the competitiveness of Irish products on the US market, including Kerrygold, according to the Irish Farmers' Association.
The farming organisation said that the US market makes up around 11% of total Irish food and drink exports.
Dairy at €830 million and drinks, predominantly whiskey, at €900m account for 91% of Irish exports to the US, the body added.
The IFA also said that Kerrygold is now the second best-selling butter brand in the US.
The Irish Whiskey Association has said the effects of the US tariff announcement will be immediate on sales of Irish whiskey, spirits and liqueurs in America.
In a statement, the association said: "Should an appropriate resolution not be found, this tariff may have a detrimental effect on the position of the category in the US market, undoing decades of success and growth.
"The US has been the engine of growth for Irish whiskey and spirits, and now represents 41% of Irish drinks exports every year.
"The total value of the US market for the Irish drinks sector is €865 million per annum."
Earlier, the President of the European Central Bank said Europe's response to US tariffs would be "strong and together".
Christine Lagarde was speaking at an event at UCD in Dublin and made the remarks ahead of an announcement of tariffs by US President Donald Trump, which is expected later this evening.
