The Government is engaging directly with both the Trump administration in the United States and the OECD regarding the possibility of a disruptive trade war, the Minister for Finance has said.
Speaking during Leaders' Questions, Paschal Donohoe told the Dáil that he met OECD officials twice as well as talking to US Treasury Secretary Scott Bessent.
He said Taoiseach Micheál Martin will meet US President Donald Trump in Washington next week ahead of St Patrick's Day and Tánaiste Simon Harris was in talks with US Secretary of State Marco Rubio earlier this week.
However in Liverpool this morning, the Tánaiste said the trade imbalance between Ireland and the US was not discussed in his talks with Mr Rubio - despite a readout from the State Department saying it had.
Mr Donohoe was responding to Aontú leader Peader Tóibín, who warned that a significant financial storm was on the way which could be catastrophic to the Irish economy because tariffs could decimate it.
Mr Tóibín said of the €72 billion trade in goods between Ireland and the US, €58bn related to pharmaceuticals and chemicals, which could "become more expensive" and "demand could fall."
He warned this could lead to a loss of jobs, higher taxes, a drop in GDP and the word "austerity" could be mentioned in the Dáil chamber again.
The Aontú leader contended that "so little was being done" by Government when it came to engagement with the US administration at a time when the country was facing an "existential threat."
Mr Donohoe accused him of delivering "typical misinformation" in his contribution.
He said Ireland was making the case with the Trump administration for trade that is mutually beneficial and an economic forecast will be ready for Cabinet "in a few weeks."
Minister Donohoe said it was noteworthy that Ireland's latest employment figures showed that 2.8 million people are at work; unemployment is now at nearly the lowest level in the history of the State; and the country continues to run a budgetary surplus.
Government has done 'extensive contingency planning for tariffs'
Earlier, Minister for Public Expenditure and Reform Jack Chambers said there has been "extensive contingency planning" regarding tariffs.
Speaking on RTÉ's Morning Ireland, Mr Chambers said that the Government is seeking to articulate the "strength of the reciprocal relationship between Ireland and the US, and the EU and the US".
"We know that tariffs will bring serious disruption, damage, and will undermine the international trading environment, which has been the backbone of the Irish economy," he said.
"That’s why there’s scenario planning across all of the different possibilities which might emerge."
Regarding whether a blanket tariff across the EU or a product or sector-specific tariff would be more damaging, Mr Chambers said that both would be "significantly damaging".
"Our whole economic model is on the basis of international trade, and we've got a very diversified export model across many different sectors."
Mr Chambers added that Taoiseach Micheál Martin would reflect the "balanced relationship which exists in economic terms" in his negotiations with US President Donald Trump, when he meets him in Washington next week.
He said that Ireland is the sixth largest exporter into the US, with Irish companies creating over 100,000 jobs.
"There are many Irish companies creating jobs across the US, and it's demonstrating the mutual economic benefits which have been yielded from free trade and from international trade sometimes, which isn't reflected in the broader conversation," minister said.
Regarding potential tariffs and their impact on Northern Ireland trade, UK Ambassador to Ireland Paul Johnston said that both Governments believe in free trade.
Speaking on the same programme, he said: "We believe in international inward investment, we don't believe in tariffs, and we hope that tariffs don't come to Europe, but we need to be prepared and we've done contingency planning, I'm sure the Irish have done as well.
"It would be important for us to have a very responsible and transparent dialogue about how to manage any asymmetric impact that tariffs might have on these islands."
