The introduction of US tariffs is already being felt by Irish companies that supply products into the US market, with reductions in orders and some cancellations, employer group Ibec has said.
Executive Director of Fergal O'Brien said he thinks it will take some time for the full effects of the growing trade war to become clear in Ireland but that Ibec client companies who sell into the US are seeing an impact.
This evening, US President Donald Trump announced a 90-day pause of the higher 'reciprocal' tariffs, bringing them to the baseline 10% tariff instead. However, he increased tariffs on China to 125%.
Speaking before the dramatic turn, Mr O'Brien said: "In Ibec we already have evidence of members in the most impacted sectors of the economy having some orders cancelled, having orders reduced and are now wondering what immediate steps they need to take to preserve the viability of their businesses.
"Government really needs to be ready. We don't know what lies ahead, but we need to be ready for what we're all already facing, which is real challenges and real severe impacts of the trade war in a number of Irish businesses already at this stage," Mr O'Brien said.
He said the key issue now is how long global powers let this situation continue.
Mr O'Brien was speaking after Enterprise Ireland announced a designated team has been put in place to assist companies in dealing with the US tariffs.
Live: China to impose additional tariffs of 84% on US goods
Interim Chief Executive Officer of Enterprise Ireland Kevin Sherry said of the 950 companies it deals with about 400 companies are exporting goods to the US.
Speaking on RTÉ's Morning Ireland, he said it is vital that companies understand their supply chain because they may be using elements of their products that are coming from the US, and they will be affected by the reciprocal tariffs.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
Mr Sherry said that companies "really need to engage and proactively engage and talk to their customers and distributors".
He said there are grants for companies that want to get external advice.
"There's funding available also for companies that want to assess and access the new market," said Mr Sherry.
He said that it is "far too early to make predictions" about possible job losses.
"There's a lot to play out on this. Obviously, we know that the Tánaiste is meeting the US Commerce Secretary today and discussions ongoing between the EU and the US so it's far too early to make predictions.
"Our advice to companies and what companies are doing is focus on the things that they can control.
"Focus on the actions that they can take and Enterprise Ireland is they're working with them to support them in taking those actions," Mr Sherry added.
Storm clouds 'gathering' over US tariffs, says Donohoe
Meanwhile, Minister for Finance Paschal Donohoe has said that global economic activity is becoming "increasingly fragmented along political lines".
He said that "storm clouds...are clearly gathering".
The import taxes announced by the US president last week, including a 10% charge on UK goods, a 20% on EU goods, took effect just after 5am.
Mr Donohoe has said tariff-related issues will now likely interact with other structural challenges, including ageing populations, AI, climate change and high public debt.
The top priority must be to "de-escalate the current situation" which comes after "unprecedented" shocks, he said.
The tariffs imposed by the US are "historic", the minister said.
Tariffs imposed on China now mean that the "tax on the import is now higher than the price of the import itself," he added.
"The risk is lower trade, lower living standards and lower growth," he said, describing them as "lose-lose outcomes".
Mr Donohoe said he hopes "a more normal trading relationship" with the US can be restored.
Earlier, Taoiseach Micheál Martin said the Government is pleased that Irish concerns were "taken fully into account" on the potential inclusion of bourbon and dairy in EU counter tariffs.
He said the Government had been in ongoing contact with the European Commission and had made Irish sensitivities clear.
Mr Martin said he raised Irish concerns directly with the President of the EU Commission Ursula von der Leyen.
The Taoiseach told a Dáil debate on tariffs that everyone loses in this trade war and the poor lose most of all.
He said the consequences would be dire for millions of people around the globe, including the world's poorest countries.
On the potential for further EU counter tariffs, Mr Martin said the EU was continuing to reflect on and prepare countermeasures in relation to the tariffs announced by the US on 2 April.
However, he said the EU is also prioritising negotiation and dialogue with the US.
Sinn Féin leader Mary Lou McDonald has said Mr Trump's tariffs are an unjustified attack of economic aggression and will damage the US and the global economy.
She said counter-tariffs were not in Ireland's interests.
But she warned that Irish competitiveness had been allowed to slip and this must change with big investment.
Ms McDonald called on the Government to champion Irish interests in Europe and ensure the response does not do any damage.
