Burke says US tariff threat less severe than 2008 crash

Enterprise Minister Peter Burke has downplayed fears that potential US tariffs would trigger an economic crisis on the scale of the 2008 financial crash. While acknowledging the risks posed by looming US trade measures, he described the situation as serious but not catastrophic, emphasizing that Ireland’s economy remains in a strong position.

The warning comes amid growing concerns that US President Donald Trump, alongside Commerce Secretary Howard Lutnick, is preparing to announce significant tariffs targeting pharmaceutical exports. Irish officials fear that American multinationals operating in Ireland could be caught in the crossfire, potentially leading to job losses and a slowdown in investment.

Minister Burke noted that such tariffs, particularly on pharmaceuticals, could have a mixed impact, describing them as a double-edged sword. While no specific details have been confirmed, Trump’s expected announcement on April 2 has injected uncertainty into Ireland’s trade outlook.

Resilience and Preparation at the Forefront

Speaking on RTÉ’s This Week, Burke stressed that although a global trade dispute would certainly affect economic performance, the current conditions are far more favorable than during the financial collapse of the late 2000s. He pointed to steady growth of 3%, employment levels above 2.8 million, and sovereign wealth funds totaling over €16 billion as signs of Ireland’s robust position.

Still, he admitted there is considerable unpredictability about the nature and scope of any tariffs the US might introduce. Government leaders, including Tánaiste Simon Harris, are actively engaging with EU counterparts to ensure a coordinated response.

Burke said the Government’s focus remains on actionable domestic measures, including enhancing competitiveness. He is set to meet with fellow ministers to review strategies as part of a broader competitive action plan, aiming to protect Ireland’s attractiveness for investment and trade.

While dismissing short-term relocation concerns, Burke warned of long-term risks if uncertainty continues, particularly around investment decisions that shape the next decade of Ireland’s economic development.

Calls for Strategic and Measured Response

Social Democrats trade spokesperson Sinéad Gibney echoed the need for a calm and calculated approach. Speaking on the same programme, she warned against hasty retaliation, noting that Trump’s policies can shift quickly, as seen in his dealings with Mexico and Canada.

Gibney urged Ireland and the EU to stand firm as a unified trading bloc but cautioned against escalating tensions unnecessarily. She emphasized the importance of resisting provocations without compromising other sectors or triggering broader trade disruptions.

With just days until the anticipated US announcement, Irish officials are urging patience while working behind the scenes to shield key industries from fallout and uphold the integrity of Ireland’s trading relationships.