BSS
  11 Mar 2025, 09:47

Trump tariff fears cloud Irish PM's annual US trip

DUBLIN, March 11, 2025 (BSS/AFP) - Irish Prime Minister Micheal Martin meets US President Donald Trump in Washington on Wednesday during an annual trip to mark Saint Patrick's Day, which could be marred by concerns over imminent US tariffs on EU exports.

The usually amicable diplomatic opportunity centres around the gifting of a bowl of green shamrock -- a symbol of Ireland -- to the current White House occupant.

But this year, amid escalating battles of tit-for-tat tariffs between Washington and countries around the world, Trump is expected to focus on EU member Ireland's enormous trade surplus in goods with the United States.

According to the US Bureau of Economic Analysis, its deficit in goods trade with Ireland last year was almost 80 billion euros ($87 billion), the fourth largest of any other single country.

Trump's Commerce Secretary Howard Lutnick has even singled out Ireland's surplus as a key gripe.

It is "nonsense that Ireland of all places runs a trade surplus at our expense", the outspoken billionaire wrote on X in November.

Last week, Secretary of State Marco Rubio "discussed the US priority to address the US-Ireland trade imbalance" with his Irish counterpart Simon Harris, according to a US readout of a phone call between the two.

During a proclamation of Irish Heritage Month to mark festivities around the coming Saint Patrick's Day on March 17, Trump also raised the issue.

The White House meeting with Martin could be an opportunity to "advance fairer trade policies" with Ireland, he said in the statement.

- Potentially 'destructive' -

Trump has said products from the 27-nation European Union would be hit with tariffs of 25 percent, adding that the bloc has "taken advantage of us."

The EU has vowed to retaliate with proportionate countermeasures.

"An extended and escalating trade war would be entirely destructive to Ireland's interests," Louis Brennan, a professor of business studies at Trinity College Dublin, told AFP.

"This could lead to the real possibility of US corporations currently based in Ireland reshoring back to the US, particularly in sectors such as pharma that have been called out by Trump," Brennan said.

The United States is Ireland's single biggest export market for pharmaceutical drugs and ingredients, mostly manufactured by US companies like Pfizer, Eli Lilly, and Johnson & Johnson.

US tech giants like Apple, Microsoft and Google also have European bases in Ireland with large staff headcounts, and bolster the country's bumper corporate tax receipts.

A trade war would have "major negative impacts on the Irish economy in terms of employment and tax revenue", Brennan said.

Trump and Martin are also expected to discuss the Middle East situation and Ukraine, which could also trigger uncomfortable moments during the meeting with Trump.

Non-NATO member Ireland is one of the most pro-Palestinian countries in Europe, in stark contrast to the pro-Israel Trump administration, and while militarily neutral it is staunchly supportive of Kyiv.

Martin pledged increased humanitarian aid to Ukraine's President Volodymyr Zelensky during his stopover in Ireland en route to the ominous Oval Office clash with Trump last month.

The explosive exchange was "very unsettling", Martin said in a television interview ahead of his looming tete-a-tete with Trump.