The Irish government has warned that a looming trade war with the United States could result in the loss of up to 80,000 jobs in the country. This comes after President Donald Trump’s recent announcement of new tariffs on the European Union, a move that could heavily impact Ireland’s economy.
The Irish government has hit back against accusations from the US of operating a “tax scam,” adding further tension to the ongoing dispute.According to Ireland’s finance minister, Paschal Donohoe, the potential job losses would be concentrated in Ireland’s multinational sector, which employs a significant portion of the workforce.
The warning also comes in the wake of US claims about Ireland’s corporate tax practices, with some American officials accusing the country of benefiting unfairly from its tax policies.
Economic Fallout and Job Loss Risks
Ireland’s economy stands to lose thousands of jobs if President Trump follows through on his plan to introduce tariffs against the European Union, set for April 2. The threat to Irish businesses is especially focused on the multinational sector, which accounts for a significant portion of employment in the country.
According to Donohoe, in the worst-case scenario, the loss could range between 50,000 to 80,000 jobs, a substantial blow to the nation’s workforce.
The potential tariffs would affect key industries in Ireland, such as pharmaceuticals, which could face additional costs as a result of new trade barriers. Some of the largest US companies operating in Ireland, including Pfizer and Eli Lilly, may be particularly vulnerable.
Experts warn that while the tariffs would hurt some sectors directly, the indirect consequences could be even more damaging to Ireland’s economy.
Response to US Accusations of Tax Scams
Tensions have also been escalating between the US and Ireland over claims of tax avoidance. US Commerce Secretary Howard Lutnick recently accused Ireland of running a “tax scam,” a statement that the Irish government strongly rejected.
Minister for Enterprise, Peter Burke, was quick to defend Ireland’s tax practices, emphasising that the country operates with full transparency and adheres to international tax agreements.
Burke pointed out that Ireland’s tax regime is based on robust agreements with the European Union, and the country recently implemented reforms to increase its corporate tax rate from 12.5% to 15%, making its system more transparent.
Furthermore, Ireland’s trade surplus with the US, which was inflated in Lutnick’s claims, does not reflect the actual figures, which show a significant deficit in services, according to official government data.
