Taoiseach: Trump's tariff threat on EU alcohol creates serious difficulties for businesses
Taoiseach Micheál Martin has warned that the uncertainty of threatened tariffs is creating serious difficulties for businesses and investment decisions."Tariffs harm business, tariffs increase inflation and are not good for the consumer and are not good for business, and that is our view," Mr Martin said.It comes as US president Donald Trump has threatened a 200% tariff on European wine, champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.The European tariff was expected to take effect on April 1. Mr Trump said in a social media post that the EU was “one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States”.Asked if he will now be making a special plea to the EU given the fact that €800m of Irish whiskey per year is exported to the US, Mr Martin said: "We now have the next number of weeks to actually engage with the EU Commission in respect of that issue and we'll be making those points."Mr Martin said the only way to deal with the threatened tariffs are through dialogue between the European Union and United States government."Businesses will have to adapt as this evolves and government will work with business. We have mechanisms now to engage with business, both domestically and here [in the US], on these issues and how they unfold," he said.Mr Martin did sound a positive note stating that he believes there "will be some distance to go yet" before tariffs are enforced."There will be an EU Council towards the end of next week, and again, there will be discussions and consultations within the European Union in respect of European actions."What we will be saying is we need to refine some of this, because that was an old playbook in a different set of circumstances, with perhaps different agendas, and I think this is a new situation. And therefore I think there has to be a strategic approach to the areas that there will be reciprocal tariffs on."Speaking in Washington, Mr Martin said: "On the economic front, our fundamental objective on this trip is to protect the Irish economic interest, to protect jobs in Ireland, both in terms of existing investment in Ireland and any future investment into Ireland, and also then in terms of Irish companies who are growing and investing in the United States going to head count, but also strengthening their companies through access to the US market."Meanwhile, the Director of the Irish Whiskey Association has said "there is no winner in a trade war". Eoin Ó Catháin, who is also in Washington to promote the iconic Irish products, said: "The imposition of tariffs will impact on our businesses and our consumers."Having our sector implicated in this dispute puts jobs, investments and businesses at risk and has the potential to be devastating for Irish Whiskey."
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