Tariff uncertainty ‘problematic’ for fiscal planning, Taoiseach says

Uncertainty around tariffs is “problematic” for Budget preparations and medium-term fiscal planning, the Taoiseach has said.

US President Donald Trump has said that he will implement a 30% tariff on EU goods from August 1 if a new trading deal with the bloc is not agreed by that deadline.

Mr Trump has also threatened to ramp up tariffs on pharmaceuticals from the end of the month, raising concerns on a key sector for the Irish economy.

Negotiations between the US and the EU continue as the Irish Government prepares to announce its Summer Economic Statement next week.

Ireland is also due to provide an update on its five-year fiscal stability plan to the EU.

Speaking to reporters on Wednesday, Mr Martin said: “We’re keeping everything under review, but in context of this year, we have fair ideas to where revenue will land and where expenditure will land.

“But certainly we’re waiting in terms of the midterm framework, the five year programme that has to be submitted to Europe, it is problematic.

“We can’t abolish the Budgetary process, we still have to go and prepare the budget, and we have to prepare estimates, and there has to be negotiations and so on.

“And there are very significant downside risks given what’s happening and in terms of the tariff threat.

“Potentially, if we’ve got it resolved it could be an upside, we’ll have to wait and see.”

He added: “There are real issues in endeavouring to project into the future but we do have capital at our disposal.

“We do need to transform our infrastructure.

“We do need to put sufficiency of money aside for water and for housing and for energy.”