Ibec Statement on the US Administration’s decision to impose Europe-wide tariffs on exports from Europe

Ibec CEO Danny McCoy said:

"We are deeply disappointed by the US Administration’s decision to impose 20% tariffs on imports from the European Union, particularly given the impact it will have on transatlantic trade and consumers. We now urge the Irish Government and the European Commission, to act with urgency to find a negotiated solution with the US administration. Government must also work with business to assess the potential consequences for the Irish economy resulting from the imposition of US tariffs and the likely EU response to these tariffs. The Government must advocate for a proportionate and measured EU response, informed by a detailed analysis of supply chains, strategic considerations, and the broader implications of any retaliatory measures.

While this will present challenges for a number of sectors, we anticipate that the new tariffs will result in a net overall export impact of around 2–3% in the short-term. Thankfully, we are in a position of economic strength, which will provide the necessary cushion to absorb slower growth and invest in diversifying market opportunities. To protect the economy and jobs we can draw on what worked in the Covid and Brexit measures. The most important domestic response is to support enterprises most affected by the tariffs. This should include time-bound short-time working supports to help keep employees connected to businesses experiencing demand shocks, as well as other measures to enhance productivity and access to new markets.

Open and free trade has been hugely beneficial to the global economy. Ireland, Europe, and the US have all gained significantly from this trading relationship. Ireland, in particular, has played a crucial role in providing substance and strategic positioning for US firms accessing the European single market and global markets. Our strong track record of delivery has not only benefited our own economy but has also contributed to the success of US firms and their shareholders.

Now is also the time to accelerate national and EU-level measures that enhance overall business competitiveness. Addressing business costs, reducing regulatory burdens, improving infrastructure delivery, and investing in skills, AI, and innovation will be critical in strengthening productivity and resilience in the face of this international disruption."