US official criticizes Ireland's corporate tax practices

US Secretary of Commerce Howard Lutnick has criticized Ireland, calling it a “tax scam.” He claims that many US companies place their intellectual property in Ireland to benefit from lower taxes. Lutnick's comments came during a podcast focused on venture capitalists. He argued that this situation is costing the US billions in tax revenue. Lutnick's remarks included an inflated figure for Ireland's budget surplus, saying it was $60 billion instead of the actual $27 billion. He expressed frustration that US companies are paying taxes to Ireland instead of the United States. Lutnick, a supporter of President Trump, is pushing for changes to the tax system that could lead to tariffs against Ireland. As tensions rise between the US and EU, Irish businesses prepare for the potential impact of a trade war. The Irish government is likely to provide some help, but it may not be on the same scale as the financial aid provided during the COVID-19 pandemic. Tánaiste Simon Harris warned businesses about possible disruptions in early April. Meanwhile, European officials are trying to avoid a trade war. They have delayed imposing tariffs on US products like Bourbon whiskey due to lobbying efforts from Ireland and France. However, if the US goes ahead with its planned tariffs, the EU is expected to retaliate. The situation remains uncertain as officials try to balance responses to the US tariffs. There are concerns about divisions within the EU regarding trade responses, as different countries may be affected differently. The Irish government is considering targeted support for businesses especially vulnerable to the economic impact.