Pharmaceutical exports from Ireland to the United States could face punitive tariffs "within the next few weeks," according to Tánaiste Simon Harris, who described the US move as likely being just the start of a broader process targeting key European industries.
Speaking to RTÉ's Prime Time, Mr Harris said it was made clear during talks with the US Secretary of Commerce Howard Lutnick last week that pharmaceuticals were one of five sectors President Trump intended to target with EU-wide tariffs - alongside cars, steel, aluminium and semiconductors.
"It was suggested to me that [pharma tariffs] may not come at the same time," Harris said. "What we've seen last night is likely to be the start of a process and not necessarily the end moment.
"I think it would be foolish not to operate on the assumption that it is likely that there will be further sector-specific measures when exactly remains to be seen, potentially within the next few weeks," the Tánaiste added.
Ireland had "anticipated this risk for some time," he said, and has been working to build consensus with EU member states that also have significant pharmaceutical industries.
Around a dozen European countries are expected to participate in a strategic engagement with the industry organised by the European Commission next Tuesday - a move Ireland had pushed for according to the Tánaiste.
Asked about comments by a French government spokesperson, who suggested that the EU could retaliate against the US by targeting digital services, the Tánaiste said such an approach as "the nuclear option" and that it was not reflective of the EU's overall stance.
"We don’t agree that that’s the correct approach," he said, warning that hitting digital services would be particularly damaging for Ireland.
"What we should be doing is looking to de-escalate but always being willing to bring forward measures if they're required."
The Tánaiste’s comments come after President Trump unveiled a 20% tariff on EU goods on Wednesday, excluding pharmaceutical products for now.
The announcement sent shockwaves through global markets and sparked fears of a new transatlantic trade war.
Ireland, which is home to many of the world’s largest pharmaceutical and life sciences firms is particularly exposed to any future escalation.
The Tánaiste also acknowledged that a prolonged high-tariff environment could undermine future investment.
"If we end up in a very high tariff environment, the chances of new jobs and new investments slowing down… becomes a very real risk," he said.
Despite this, the Tánaiste insisted that many of these companies would remain in Ireland due to access to the EU single market and the complexity of relocating established operations.
"We’re entering a period of significant economic turbulence," he said. "But we will get through this - step by step, day by day."
