Trump's tariffs could cost Ireland 80,000 jobs

The Irish government has issued a warning that up to 80,000 jobs could be lost in Ireland if Donald Trump starts a trade war with the European Union. This number represents nearly half of the workforce in Ireland’s multinational sector. Trump is expected to target this sector to bring jobs and taxes back to the United States. Finance Minister Paschal Donohoe stated that, in the worst-case scenario, these job losses could severely impact the economy. He emphasized that between 50,000 and 80,000 jobs may not be created or maintained if tariffs are implemented. Ireland has also responded to accusations from the U.S. about operating a "tax scam." Enterprise Minister Peter Burke rejected these claims, stating that Ireland has many tax treaties in place and is committed to transparency. He noted that the corporate tax rate has recently increased from 12.5% to 15% following the OECD's revised tax agreement. U.S. Commerce Secretary Howard Lutnick called Ireland his "favorite" country for tax issues, claiming it had a $60 billion budget surplus last year. However, Ireland's real surplus for 2024 was €25 billion, partly due to a significant back tax payment from Apple. Trump plans to introduce tariffs on the EU starting April 2, which he has dubbed "liberation day." In a recent meeting with Irish Prime Minister Leo Varadkar, Trump highlighted U.S. pharmaceutical companies operating in Ireland. Experts believe that changes in U.S. tax policy may hurt Ireland's life sciences sector more than tariffs. However, other industries, like alcohol, could still face significant damage. Trump has threatened a 200% tariff on Irish whiskey in response to potential EU taxes on U.S. whiskey. According to a recent report, the Irish economy could shrink by up to 3.7% in a severe trade war scenario. Sinn Féin’s Pearse Doherty has suggested that targeted support for affected businesses may be necessary, similar to Brexit-related support measures.