Outgoing minister for finance Jack Chambers has said Ireland will work “constructively” with US president-elect Donald Trump’s administration while expressing concern that ongoing geopolitical tensions had resulted in a less “trade-friendly” global environment.
At an event in Dublin hosted by the American Chamber of Commerce Ireland (AmCham), to coincide with Thanksgiving in the US, Mr Chambers highlighted Ireland’s ongoing trade ties with the US. However, he did not mention Mr Trump’s protectionist agenda or his threat to impose sweeping import tariffs, a move that could greatly disrupt Ireland’s €54 billion export trade with the US.
“The Covid-19 pandemic, Russia’s invasion of Ukraine and other geopolitical tensions and conflicts have resulted in a less globally integrated and trade-friendly environment,” Mr Chambers said.
“Such challenging global conditions present risks to open economies like Ireland that have benefited significantly from closer ties to our trading partners across the globe.”
Mr Trump, who takes office on January 20th, threw markets into a downward spiral this week by signalling his intention to impose 25 per cent tariffs on imports from Canada and Mexico, as well as “an additional 10 per cent tariff, above any additional tariffs” on China.
He has previously cited plans for tariffs of 10 to 20 per cent on all goods coming into the US from Europe and elsewhere, and up to 60 per cent on those from China.
Minister Chambers told the AmCham event that ongoing economic integration and investment would continue “to form the basis of a mutually beneficial and enduring relationship” between Ireland and the US.
“We look forward to working with the new administration in a constructive manner to achieve those aims and I know there has already been initial contacts including a valuable call between the Taoiseach and president-elect Trump,” he said.
On the issue of global tax reform, Mr Chambers said Ireland hoped to “avoid fragmentation and bring much needed stability to the international tax landscape”.
“My view always is that a global approach is preferable to unilateral measures and we remain committed to multilateral solutions being the best way to achieve that,” he said.
Pillar One of the OECD’s global reform plan, which seeks to give bigger countries greater taxing rights, has run into political difficulties in the US.
Mr Trump has also hinted he might reduce the headline rate of corporation tax in the US from 21 per cent to possibly 15 per cent, unravelling Ireland’s competitive advantage, although he may face political opposition.
In his address, Mr Chambers noted the total stock of foreign direct investment in Ireland that originates from the US amounted to over €900 billion, or 70 per cent of total FDI, and that US firms employed 210,000 workers directly in the Republic.
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