The Daily Star Ireland
Tánaiste Simon Harris held a late-night phone conversation with newly appointed US Commerce Secretary Howard Lutnick, during which both parties exchanged views on trade relations between Ireland, the EU, and the United States. The call comes at a time of growing unease over escalating tensions tied to trade and tariffs between the EU and the US.
Harris described the conversation as a productive opportunity to outline Ireland’s economic position, including recent changes to its tax policies. He congratulated Lutnick on his appointment and expressed his interest in working closely with the US administration going forward. Both agreed to maintain regular communication and plan to meet in person soon.
Speaking from Government Buildings the next morning, Harris reiterated Ireland’s strong economic relationship with the United States and highlighted the importance of mutual cooperation. He acknowledged the strain caused by recent trade disputes and emphasized the need for ongoing dialogue.
The conversation took place in the context of the US administration’s intention to impose further tariffs on EU goods by April 2. In response, the EU has postponed its countermeasures until mid-April, allowing space for potential negotiations. These countermeasures, originally set to target US goods such as steel, aluminium, and bourbon, were valued at approximately €26 billion.
Despite the temporary delay, Harris noted that President Trump appears committed to proceeding with additional tariffs. He voiced his disappointment with the US approach, emphasizing that constructive talks should precede any punitive trade measures.
Lutnick’s Criticism of Ireland’s Tax System Raises Tensions
Commerce Secretary Lutnick has previously drawn attention for his outspoken criticism of Ireland’s corporate tax regime, referring to it as his “favourite tax scam” and blaming it for a trade imbalance that he believes unfairly benefits Ireland at the expense of the US. His remarks were firmly dismissed by Irish Finance Minister Paschal Donohoe.
Nevertheless, Harris chose to focus on shared interests during their call, stressing the value of a strong, stable transatlantic economic relationship. He reiterated Ireland’s commitment to open dialogue and voiced hope that the coming weeks could be used to find practical solutions that avoid further harm to consumers and businesses on both sides of the Atlantic.
Harris also recently convened a session of the Government’s Trade Forum to examine the potential implications of the looming tariff increases. While cautious, he remains optimistic that ongoing engagement with both EU partners and the US administration could help de-escalate trade tensions before they inflict long-term damage.
