Ex-minister backs calls for government for firms affected by US tariffs

By Cate McCurry, PA

Former minister for foreign affairs and trade Simon Coveney has said the government should be willing to put s in place for workers and firms affected by US tariffs.

Mr Coveney, who stepped away from politics last year, said employers will want to avoid large-scale redundancies or people losing their jobs because of the effects of the sweeping 20 per cent tariff imposed by the US.

The decision was announced by President Donald Trump last Wednesday and will come into effect in the coming days.

Business leaders have called for short-term government for workers and businesses affected by US tariffs.

The Irish Congress of Trade Unions, Ibec and others have called for the introduction of measures similar to those introduced during Covid, such as short-time works schemes, to protect jobs and businesses during the looming economic challenges.

Ibec chief executive Danny McCoy was among a number of industry leaders and representatives who met senior ministers at the Government Trade Forum on Friday to discuss the impact of US tariffs on Irish exports.

Mr McCoy warned that the impact on demand for fast-moving consumer goods, like the drinks industry, will be felt immediately.

Mr Coveney told RTÉ Radio One that the government should be willing to put short-term s in place.

He said it could apply to specific sectors that are heavily impacted, including the food and beverages industry which will be particularly exposed.

Mr Coveney said: “The first thing I’d say is that President Trump and the team around him don’t negotiate in a normal way. We’re not seeing the normal channels of diplomacy where a large superpower like the US reaches out to its friends and allies and trading partners and says, look, this is why we need to change things.

“Instead, we’ve had a dramatic announcement and then a hint that the US is willing to take calls from capitals around the world to discuss them.

“That is, that is a very aggressive way to negotiate, but it’s something we need to get used to for the next few years in relation to the relationship with Washington.

“In of the impact in Ireland, so far, there hasn’t been an announcement in relation to tariffs on pharmaceuticals – 60 per cent, in fact slightly more than 60 per cent, of our exports to the US are in the pharma sector.

“If you’re looking for some positive news from this week, that’s positive, although let’s wait and see what happens in the next few weeks.

“I think the government should be willing to put s in place. What we don’t want to see here is large-scale redundancies or people being forced out of a job because exporting companies have to diversify into new markets and that will take some time.”

However, Minister of State Timmy Dooley said that a scheme to help businesses affected by the tariffs cannot be a “one-size-fits-all”.

Speaking on the same radio programme, Mr Dooley said any such scheme would have to be “tailored” to different sectors.

He also urged caution and calm in comparing Mr Trump’s announcement to the economic challenges brought on by the Covid-19 pandemic.

He claimed it was “creating a hype that is unnecessary”.

“Clearly, there will be a fallout from the imposition of tariffs. It’s yet to be clear what the tariffs ultimately will be,” Mr Dooley said.

“The expectation is now that we’re entering, or hopefully entering, a phase of discussion and negotiation that will ultimately give us a picture as to where we’re going.

“Of course, the state will stand by the workforce of those that are affected and the companies affected.”

He added: “I mean, there isn’t going to be a one-size-fits-all (scheme). It’s not like taking a scheme from the shelf here and presenting it to the public at large.

“They will have to be tailored for different sectors. And I have every confidence in the state agencies to work with the companies and the sectors that are most affected.

“It’s very clear, it doesn’t take an expert to recognise that there’s significant funds available to address the crisis that may emerge here and to try and smooth the impact on companies.”