Martin Daly: Urges EU Unity as US Tariffs Threaten Trade
Martin Daly raised concerns about EU–US relations and the risk of US tariffs, asking the minister to report on Foreign Affairs Council discussions and to make a statement. He warned that tariffs would harm businesses and consumers and urged a united EU approach, competitiveness measures and supports for small and medium enterprises.
Martin Daly asked the Minister of Foreign Affairs to report any discussions on EU–US relations at the recent Foreign Affairs Council and to make a statement, citing Ireland's unique exposure to the threat of tariffs and questioning whether US tariff moves are political leverage or a trade war. He also raised concerns about the security implications and whether the traditional American guarantee to European defence remains secure.
The minister reported attending the Foreign Affairs Council meeting in Brussels on 27 January, where ministers discussed relations with the US. Ministers agreed to rigorously assess the impact of any actions by the new US administration and to engage in a united and constructive way, while noting that the EU must improve competitiveness, innovation and agility.
EU Heads of State and Government discussed the need for EU unity on the issue at their formal retreat in Brussels on 3 February. Since that discussion, President Trump announced a decision to impose 25% tariffs on steel and aluminium imports to the United States commencing in March, and the minister said he would attend a virtual meeting of EU trade ministers to consider appropriate responses.
Both the minister and Martin Daly emphasised that tariffs hurt businesses and consumers and are not in the interests of the EU, Ireland or the United States. They called for preparedness without alarmism, focusing on measures within the EU's control such as investing in infrastructure to enhance competitiveness and supporting small and medium businesses through engagement mechanisms like the Consultative Trade Forum.
Question to the minister
Martin Daly asked the Minister of Foreign Affairs to report any discussions on EU–US relations at the recent Foreign Affairs Council and to make a statement, citing Ireland's unique exposure to the threat of tariffs and questioning whether US tariff moves are political leverage or a trade war. He also raised concerns about the security implications and whether the traditional American guarantee to European defence remains secure.
Foreign Affairs Council discussion
The minister reported attending the Foreign Affairs Council meeting in Brussels on 27 January, where ministers discussed relations with the US. Ministers agreed to rigorously assess the impact of any actions by the new US administration and to engage in a united and constructive way, while noting that the EU must improve competitiveness, innovation and agility.
EU summit and tariff announcement
EU Heads of State and Government discussed the need for EU unity on the issue at their formal retreat in Brussels on 3 February. Since that discussion, President Trump announced a decision to impose 25% tariffs on steel and aluminium imports to the United States commencing in March, and the minister said he would attend a virtual meeting of EU trade ministers to consider appropriate responses.
Business preparedness and supports
Both the minister and Martin Daly emphasised that tariffs hurt businesses and consumers and are not in the interests of the EU, Ireland or the United States. They called for preparedness without alarmism, focusing on measures within the EU's control such as investing in infrastructure to enhance competitiveness and supporting small and medium businesses through engagement mechanisms like the Consultative Trade Forum.
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Transcript
It is not clear whether he is using tariffs just for crude political leverage or is it a true trade war. It is also not clear if the traditional American guarantee to European defence is secure either. Given the consequent current economic and security instability and Ireland's unique exposure to the threat of tariffs, I would like to ask the Tánisle Minister of Foreign Affairs if you would report in any discussions on the EU-US relations at the recent Foreign Affairs Council and if you would make a statement on the matter. Thank you. Thank you very much to Deputy Daley for the question, and congratulations to you on your election to this House. I look forward to working constructively with you. This question is timely because it is so important that at an EU level we work together in relation to how we approach that transatlantic relationship. The European Union and the US share a strong, mutually beneficial partnership. That was true before the US presidential election, it is equally true after the US presidential election. This is a relationship, a partnership which for decades has underpinned global stability, sustainability and prosperity. The transatlantic relationship is essential and it must be supported by broad and robust institutional frameworks and by bipartisan engagement. I attended, as you alluded to, the Foreign Affairs Council meeting in Brussels on 27 January, in which ministers held a discussion on European Union relations with the US. While it was clear that some of the new US administration's policies will have a potentially challenging implication for the EU, it was agreed that we need to rigorously assess the impact of any actions by the US administration and work in a united way to engage as constructively as possible with the new administration. I really believe that the EU and the US are stronger and safer when they work together. Ministers did note that Europe is itself an economic heavyweight, but that the EU needs to improve its own competitiveness and I really believe this. It is not the job of the European Union to just commentate on elections in other countries, of course we need to monitor that. But it is also our job to control what we can control and the European Union is an economic heavyweight. But we do need to do more in terms of being competitive, being innovative, being responsive and agile. It is important to focus on the new US administration's actual policy decisions and their implications for Ireland and for the EU. For Ireland and for the EU we will need in particular to focus on those factors that I have referenced that are within our control, such as investing in infrastructure to enhance our competitiveness. In addition to the discussions on EU-US relations of the Foreign Affairs Council last month, EU Heads of State and Government also discussed the issue at their formal retreat in Brussels on the 3rd of February. An important focus in that discussion was on the need for EU unity, particularly in responding to any decision by the US administration to impose tariffs on EU goods or services. Thank you. And we have Deputy. Does Nicole Lira want to supplementary on this one? Was it? Deputy. Deputy Daly first. Deputy Daly first. Thank you for your answer. Thank you very much. I think it is absolutely critical for a country that is as small as ours with a small economy but very much exposed to the tariffs coming from the United States or any change in economic climate affecting the United States and the European Union's relationship, that we work through the European Union and that we work through a very powerful economic block to advance our own interests. I thank you for your answer. Thanks very much. I should say since the discussion we had at the Foreign Affairs Council, of course, President Trump has announced his decision to implement tariffs of 25% on steel and aluminum imports to the United States commencing in March. So I will tomorrow attend a virtual meeting of EU trade ministers where ministers from all 27 member states along with the European Commission will discuss this development and consider appropriate responses. But Ireland's view, and indeed the EU's view, is really clear. Tariffs hurt businesses, they hurt consumers, they are not in the interests of the EU, they are not in the interests of Ireland and we do not believe they are in the interests of the United States either. I agree with Deputy O'Leary. We do need to be prepared but absolutely not alarmist or facialistic. We have to work our way through this. Donald Trump is the democratically elected President of the United States of America, he is going to be the President of the United States of America for four years, we have to look at how we can respond and deal with the challenges and indeed seek opportunities where they can. I do take that point about having to be prepared to support businesses, particularly small and medium businesses, for any turbulence that may arise and that indeed is one of the reasons we have established the Consultative Trade Forum, which I will share, is to bring them into the room to be able to engage with them on these things. Thank you. Thank you.