Deputy Mary Lou McDonald-- speech from 2 Apr 2025

This evening the US President is expected to announce widespread tariffs on imports into the United States and whilst the severity and scope of these tariffs is yet unknown it is clear that this will present a significant economic challenge to Ireland. The hard reality is that our economy is particularly exposed. The United States is Ireland's largest export market and there is real concern surrounding the impact on our pharmaceutical and our tech sectors. As the European Union formulates its response the chief responsibility of government is to stand up for Ireland's interests to protect Irish jobs, Irish industry and the prosperity of our people. to ensure that any action taken does not exacerbate potential damage. It is crucial therefore that there is no knee-jerk reaction from the EU. Counter tariffs, Taoiseach, are not in Ireland's interest. The ESRI has been clear that Trump tariffs are damaging and that automatic counter tariffs from the EU would make things worse for Ireland. If we agree that Donald Trump's approach is reckless, then we cannot mimic that approach and follow him down the road of damaging tariffs. The only value of EU counter tariffs would be if they could de-escalate the situation, if you could be sure that it would force Donald Trump to withdraw his tariffs and avoid a trade war. So we need a very sober assessment of counter tariffs before they are considered or employed. This is a time for cool heads and a clear eye on what is important and to focus on the things that we can control. Successive governments have not put the basics in place to attract FDI without complex tax incentives. They have failed to invest in the areas key to building Ireland's long-term competitiveness and attractiveness. The scenario we now face shows that this must change. We need ambitious investment in housing, in our childcare system, in infrastructure, in research and development and in energy security. The threat of US tariffs cannot be used by the Government as another alibi for not dealing with these issues head on. There is also a need to recognise the threat tariffs posed to all Ireland trade. I know the Government has contacted counterparts in the North's executive. It is important that these engagements are at the highest level and focus on protecting the all Ireland economy. I am also Taoiseach of the view that a meeting should take place between the leaders of the parties here in the Oireachtas and that you should facilitate that. I think it is disappointing that you refused to agree to a dull debate this week on the threat of US tariffs. Because the reality is that there will be no winners in any trade war. However, it is also true that ordinary working people pay the heaviest price. Workers and families in Ireland are already struggling with the cost of living and Government must ensure that they are not forced to pick up the tab again. The challenge of US tariffs and a potential trade war is real and present. So Taoiseach can I ask you, what is the Government's strategy to ensure that Irish jobs and Ireland's economy is protected? And how will you ensure that the EU response does not compound any potential damage to Ireland? Well, first of all, I thank the Deputy for raising the issue because this is without question the most serious issue to face the Irish economy in a long time. And it is clear that the scale of these tariffs will be very, very significant in European terms. And I would in the first instance say Ireland does not believe in tariffs. The European Union does not believe in tariffs and the European Union does not want tariffs. So the European Union has not started this. Ireland has not started this. We are a small open economy. And in my view, the economic model that we have followed over 50 or 60 years has brought very, very significant progress, modernity and investment into Ireland. And has facilitated the growth of indigenous Irish companies who have interacted with the multinationals in a very effective way. And the bottom line is this, however, that ultimately to get this into a sustainable landing zone for the future, negotiations are key. And the Deputy outlined that part of the approach in designing any countermeasures from the European Union will be the negotiating table. Can we get this to a negotiating table where you could get a reasonable settled pattern? It will not be status quo. It will not be what it is now. And I think, as I said yesterday, I think the old order is changing. And it is regrettable. We are in an era of increased protectionism. That is not good for Ireland. It is not good for open economies. And the European, we have obviously engaged with the European Union in respect of, first of all, having a cool and calm response and not an immediate response. Also, that in the design of countermeasures, that Europe be strategic and that it doesn't bring more harm on ourselves, on Europeans, as opposed to anybody else. In other words, where we have clear surpluses, you know, it makes sense that we don't invite a doubling of tariffs or a further tariffs on. That said, it is a very serious imposition on Europe. There will be some response. And there are 27 member states. There are different balances across the EU. The car industry has been very severely, would potentially be very severely hit. There are some countries who will suffer greatly on that score. Our focus on agri-food is a big concern of Ireland. Beverages, spirits and food and dairy products and pharma. And then we have to, and working within the European Union, make sure that other sectors aren't damaged by any potential countermeasures. So the government strategy is to optimise the protection of Irish jobs. That is the fundamental objective, to protect Irish jobs. And I would say that one of the more fundamental reasons why people continue to invest in Ireland is, first of all, our membership of the European Union. Our membership of the single market. American companies are global companies. And if they are cut off from European markets, they will, they will diminish. They will say to you, they can't survive without a global footprint. And therefore, that European market, or membership of it, first of all, the free mobility of European citizens. When companies come to Ireland, they can avail of skill sets across the European Union. And you can look at the composition of workforces in Apple, Google, any of the pharmaceuticals, it bears witness to that. So we've moved beyond the tax as being the key incentive for jobs coming to Ireland. It's much more than that now. Our investment in R&D in recent years over the last two decades, three decades, has been very significant. We step-changed that, and that brought a lot of jobs to Ireland that otherwise would not have come to Ireland if we hadn't made those investments in R&D in the late 1990s. So, I'm going to turn to you now, thank you to the and to the seriousness of the situation is not in question nor is the need for collective action so can I ask for a response please response please to my suggestion that you convene a meeting of all party leaders across this House. I think that needs to happen as a matter of urgency. I think it is also helpful to recall that Ireland is and will remain a very attractive location for investment. I think you have acknowledged that the tax deals, some of them questionable it needs to be said and indeed controversial, that that era is now behind us, not least because of the global evolution of the taxation system. Therefore, let me repeat, the focus on infrastructure, on skills, on R&D and on basic public services, including childcare services, the absolute imperative to provide working people with the roof over their heads is now front and centre. So to repeat, and if you might respond, please do not allow this Trump's tariff play become an alibi not to grasp those infrastructural challenges and meet them head on. First of all, a meeting of party leaders will be convened. I think it would make more sense once we see the imposition of the tariffs and the announcement from the US side, plus the initial response from the EU, and we have no issue with a doyle debate. I think next Tuesday would be a more optimal time for it, if I am honest, because we will not have the full information this afternoon or tomorrow in terms of potentially what could happen. Although if people want it tomorrow evening, we can facilitate that in terms of the doyle debate, but I think we do need the maximum information we possibly can. There are no tax deals, specific tax deals on the companies, Deputy. I think you are mistaken there. No tax deals. We have a general cooperation tax rate, which we have had consistently. We have R&D tax credits, which are general and uniformly applied. It is important we make that point and assertive, because detractors of Ireland always want to try and undermine Ireland in making those assertions, which we have always objected to that and fought against that idea and that notion. Again, we have invested exponentially in infrastructure, we have invested in R&D, and we will continue to do that. The results have been there to see the last five years. There has been a lot of foreign direct investment coming into Ireland over the last couple of years, czyli 100% percent that passed, by a lot of trying to figure out and repair him. I just thought I was going to expand after I do not doing anything like a mission. How to process any모lden and space soweds, and so you won't really create any conversation in together . Absolutely. Have a great job out there. Awesome. It only makes nine monthsário to know. Let's advisezeitig to all these messages of the skills that provide people to do that. Let's go out and focus them signal it helped them when they are there to employ them or