US President Donald Trump needs to consider how Ireland has added value to US pharmaceutical companies operating here in any decision he might take to increase tariffs on European Union produced pharma products, Taoiseach Micheál Martin has said.
Mr Martin said he had noted comments by President Trump that he was looking at increasing tariffs on pharma imports from Europe to between 150 per cent and 250 per cent despite agreeing a deal with the EU last month to impose 15 per cent tariffs.
The US president last week signed an executive order that will implement as of Thursday a 15 per cent tariff rate on most EU products after reaching agreement with European Commission President Ursula von der Leyen when the two leaders met in Scotland at the end of July.
But Mr Trump again threatened on Tuesday to announce separate tariffs on semiconductor and pharmaceutical imports “within the next week or so” and made particular mention of Ireland in doing so during an interview with CNBC.
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“We’ll be putting a initially small tariff on pharmaceuticals, but in one year – one and a half years, maximum – it’s going to go to 150 per cent and then it’s going to go to 250 per cent because we want pharmaceuticals made in our country,” he said.
“They [pharmaceutical companies] make a fortune with pharmaceuticals, and they make in China and Ireland and everything else. This is a, you know, this is a separate class than the 15 per cent tariffs on sort of everything. These are excluded classes,” he said.
[ Tariffs: what do Trump’s latest pharma threats mean for Ireland?Opens in new window ]
Speaking in Caherdaniel, Co Kerry at a State commemoration to mark the 250th anniversary of the birth of Daniel O’Connell, Mr Martin said it was important to recognise that US pharmaceuticals had benefited from having manufacturing plants in Ireland.
“The United States has gained increasing share of the European pharmaceutical market, and indeed of many Asian markets because of their presence in those markets. These US companies are globally strong companies because of their presence in Europe.
“And Ireland, being one of the countries that they’re present in Europe, has added value and strength to those companies. And I would say to the president, he has to factor that into the equation because those companies will be damaged if such [punitive tariff] policies were to bear fruit.”
Mr Martin said that he was in regular contact with both European Commission president, Ursula van der Leyen and European commissioner for trade, Maros Sefcovic regarding any changes to the 15 per cent tariff deal agreed with the Trump administration, including carve outs for Ireland’s whiskey sector among others.
