Finance Minister Paschal Donohoe has warned that as many as 75,000 Irish jobs could be at risk in a worst-case scenario if the United States follows through on its proposed trade tariffs on European imports.
The warning comes in the wake of US President Donald Trump’s announcement last month of a 20% tariff on goods imported from the European Union. Although the plan was later paused for 90 days, a 10% blanket duty on nearly all US imports from the EU remains in effect.
Speaking on RTÉ’s Morning Ireland, Minister Donohoe said that while Ireland’s economy is still expected to grow this year and next, the pace of that growth may slow as the impact of trade restrictions begins to take hold.
“Across next year, we believe the number of jobs that may not be created, or could indeed be lost, would be 20,000 to 25,000,” he said, adding that in a more severe outcome, as many as 75,000 Irish people could be affected in the medium term.
Donohoe stressed that the Irish government is working closely with the European Union to avoid the economic fallout of escalating trade tensions. “We are engaging through the EU with the United States, and meetings have taken place at both official and political levels,” he said. “What we aim to do at a national level is to complement that process.”
Describing the state of negotiations as “very volatile,” the minister acknowledged the uncertainty facing Irish exporters, particularly in sectors such as pharmaceuticals and technology. He noted that the EU’s retaliatory measures were direct responses to US actions, but said Brussels “would rather not be in a position” to impose such tariffs.
Ireland has been making a strong case within the EU to protect key industries. Donohoe highlighted ongoing efforts to advocate for the pharmaceutical sector and the global supply chains that support it, warning that trade disruptions could lead to increased prices and reduced availability of medicines.
On digital services, the minister reiterated Ireland’s longstanding concern that digital taxes could hinder progress in broader trade negotiations. “For many years, we’ve made the case that digital service taxes could seriously affect our ability to secure a favourable trade outcome,” he said.
Calling for further diplomacy, Donohoe expressed hope that European Commission President Ursula von der Leyen would be invited to the White House to lead negotiations. “I would really want to see her in the Oval Office,” he said. “Few are better able to represent what Europe stands for.”
