The potential threat of US tariffs is "not as stark" as the 2008 financial crash, the Minister for Enterprise, Trade and Employment has said.
Peter Burke said it was hard to predict what the US administration was planning, but said that tariffs on pharmaceutical products could be "a double-edged sword".
Several ministers have expressed deep concern over how exposed Ireland is to possible double-digit tariffs on Irish exports.
US President Donald Trump and his commerce secretary Howard Lutnick have both suggested US pharmaceutical multinationals located here will be targeted in what is expected to be a major tariff announcement on Wednesday.
Minister for Finance Paschal Donohoe said that if tariffs are imposed, it could mean 50,000 to 80,000 jobs will not be created or kept in the next four to five years.
He also warned that a global trade dispute could put jobs at risk, impact living standards and economic growth.
Speaking on RTÉ's This Week programme, Mr Burke said it does not think the impact of such tariffs on the economy would as "stark" as the 2008 financial crash.
Austerity was imposed in the years after the economy overheated in the late 00s, leading to slashed public spending, many job losses and emigration.
He said that the economy was in "a position of strength", growing at a rate of 3%, with two wealth funds of more than €16 billion and 2.8 million people employed.
The minister said there is a "huge amount of uncertainty" regarding 2 April, which is when US President Donald Trump will propose new tariffs.
Minister Burke said the Government do not know at this point in time what the shape or form of that package will be.
He said Tánaiste Simon Harris is holding a number of bilateral engagements with his EU counterparts this week, while a number of ministers are also engaging in a European context.
"Critically, the next aspect that we have to focus on is areas that are inside our control," he added.
Mr Burke said he will meet Government leaders tomorrow evening "where we'll be going through a set of actions for a competitive action plan because we really have to have a laser like focus on all our competitive issues that really the Irish economy needs to sharpen up on".
The Government, he said, are "preparing as best we can" and will "get over this challenge and come out stronger for it".
He also said he would not expect pharmaceutical companies to move manufacturing facilities away from Ireland, if tariffs on the industry are introduced.
US-based pharma companies, he added, are "using Ireland to be regulated to a key marketplace outside of the US".
"What I would be worried about is more the medium to longer-term effect," he said.
"My worry is if this uncertainty continues, there will be a concern that decisions that will be taken - that will impact five, six, seven, eight years down the road - will not be taken and that's where we need to be very strong," he added.
Meanwhile Taoiseach Micheál Martin said he held a "useful and constructive call" with President of the European Commission Ursula von der Leyen.
Mr Martin said she "outlined her expectations" regarding the planned imposition of tariffs by the United States later this week.
The Taoiseach said he raised "Ireland's particular focus on the food, drinks and pharma industries".
In a social media post, he said: "We both agreed that the EU should be measured and considered in any response, and focused on our own competitiveness and an ambitious trade agenda."
Mr Martin has previously said that he expected US tariffs on pharmaceutical exports will damage the economic prospects of US companies here.
Ireland and the EU need to "keep our cool heads" and see how Wednesday's tariffs play out, the Social Democrats spokesperson on enterprise and trade has said.
Speaking on the same programme, Sinéad Gibney said Mr Trump is a "volatile character" and has been shifting in terms of how he has dealt with Mexico and Canada.
"Absolutely we have to show our might as a trading bloc and absolutely we have to stand up to bullies," she said.
"But we need to do it in a measured way and in a way that doesn't produce any unintended consequences or drag in additional sectors that we don't need to," she added.
