It's time for damage control
After following through on his tariff threats to Canada, Mexico, and China, US president Donald Trump is now eyeing the EU. If you're wondering what kind of impact that could have, look to Ireland: it's the United States' biggest European trading partner, and has the biggest trade surplus with the US – behind only China, Mexico, and Vietnam.
So when Donald Trump calls for retaliation against countries ”ripping off” the US, Ireland has grounds to believe it is on the frontline. Around 27% of the total value of Irish exports was to the US, meaning tariffs could hit company revenue and corporate tax companies pay to Ireland.
On top of that, the largest exports are pharmaceutical products produced by US companies based in Ireland. Trump has shared his intention to bring the US corporate tax down from 21% to 15% for companies producing in the US. It would match Ireland's, potentially lowering the incentive to produce there.
For now, uncertainty prevails. During his last mandate, Trump put tariffs on Irish food goods, which represent only a small percentage of exports. And it's hard to believe that multinationals and pharmaceutical companies will suddenly leave Ireland due to a more favourable tax regime back home.
Still, the unpredictability has Ireland on its toes. Ahead of St Patrick's Day (a high-profile event for US-Irish diplomacy), the Irish government is reportedly planning on sending more representatives to the White House, and a US-based Strategic Economic Advisory Panel of Irish business experts has been set up. There are even rumours that world-renowned Irish golfers will be brought in to seduce the golf-loving president...