Tánaiste and Minister for Foreign Affairs and Trade Simon Harris has warned the US administration of the negative consequences of imposing tariffs on imported pharmaceuticals and microchips.
Mr Harris has written to US secretary for commerce Howard Lutnick following the latter’s instigation of two investigations examining whether the United States’ reliance on foreign imports in those sectors poses a risk to national security.
The outcome of the investigations could result in significant tariffs being imposed on pharmaceuticals and semiconductors sold into the US from abroad.
In his letter to Mr Lutnick earlier this month, Mr Harris said Ireland and the US enjoy a “mutually advantageous economic bilateral relationship”.
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He acknowledged US foreign direct investment in Ireland is concentrated in a number of sectors, including pharma and semiconductors.
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The Tánaiste stressed Ireland’s approach on national security is “closely aligned” with Washington’s, as he signalled a “desire to work closely with the US on economic security issues”.
Mr Harris then outlined details of the pharma and semiconductor sectors in Ireland.
On pharma, he highlighted the focus of production is primarily on ingredients, rather than final products.
“Ireland’s pharmaceutical sector is deeply embedded in that of the US. They are mutually reinforcing,” the Tánaiste wrote.
On microchips, Mr Harris said Ireland has built an “extensive and technology-rich semiconductor industry”.
The Fine Gael leader told Mr Lutnick that Ireland has a strong reputation as a leading destination for US foreign direct investment and is a “highly attractive destination” for US firms.
“Low tariffs on this sector can only aid in securing these supply chains for this critically important sector,” he added.
In conclusion, Mr Harris wrote: “I appreciate that you are undertaking these investigations due to national security concerns.
“Ireland’s trade with the US helps support resilient supply chains and diversifications, and providing certainty of supply. Increasing costs on two strategic sectors that face growing competition from other regions will not aid in supporting US interests.” – PA
