President Donald Trump has ramped up his threats against Europe, warning of further action as trade war tensions escalate and markets face growing uncertainty.
The European Union (EU) announced this afternoon that it will impose counter-tariffs on American goods, escalating the ongoing global trade war.
Irish Prime Minister Micheál Martin and Trump spoke to reporters in the Oval Office when Trump was asked about his response to the EU tariffs announced earlier today.
“Of course I will respond,” Trump stated, signaling potential retaliatory measures.
The EU announced trade countermeasures on €26bn (£22bn) worth of US goods in retaliation for Trump’s tariffs on steel and aluminum imports.
Ursula von der Leyen, the European Commission President, condemned the 25 per cent US tariffs, calling them “unjustified trade restrictions” after they came into effect at 4am GMT on Wednesday
Despite the move, the European Commission emphasised that it remains open to negotiations, stating that higher tariffs benefit no one.
Trump had pledged to make tariffs central for his agendaREUTERSTrump vowed to respond to the EU’s newly announced tariffs stating: “We’ve been abused for a long time, and we will be abused no longer."
Criticizing the EU’s treatment of the US, Trump claimed: “The European Union treats us very badly, and they have for years. They sue our companies and win massive amounts of money. They sued Apple... and they use that for other reasons, I guess, to run the European Union.”
Trump argued that the EU’s policies “create ill will”, reinforcing his commitment to introducing reciprocal tariffs next month.
He stated that these measures would “restore fairness” to US trade, rebalance the country’s massive trade deficit, and help rebuild American manufacturing.
The US president said his reciprocal tariffs, which he has pledged to introduce next month, will help rebuild US manufacturing and rebalance his country’s “massive [trade] deficit” with the rest of the world.
Speaking with the Irish Prime Minister, Trump criticised Irish tax policy. He accused Ireland of luring U.S. pharmaceutical and other companies with low corporate tax rates.
He said: "We do have a massive deficit with Ireland because Ireland was very smart. They took our pharmaceutical companies away from presidents that didn’t know what they were doing and its too bad that happened.”
Trump said that had he been president when Ireland began to use its tax system to attract US companies, he would have retaliated.
Donald Trump has imposed tariffs on steel and aluminium importsREUTERSMany Irish jobs, tax revenue, and exports rely on U.S. multinational companies, making any shifts in U.S. policy a major concern for Ireland.
Trump explained he doesn't "want to do anything to hurt Ireland but we do want fairness."
Ireland’s corporate tax rate stands at 12.5 per cent, significantly lower than the global average of 23 per cent. This tax advantage has attracted major U.S. corporations, leading them to report a large share of their international profits in Ireland.
As a result, corporate tax revenue accounted for over a quarter of Ireland’s Government income in 2023, compared to less than a tenth in Britain.
Key U.S. trade partners have responded swiftly to Trump’s increased tariffs on steel and aluminum, imposing new taxes on a range of American goods, from textiles and water heaters to beef and bourbon.
Donald Trump to target EU in latest tariff tirade
GBNEWSCanada, the largest steel supplier to the U.S., announced 25 per cent reciprocal tariffs on steel products and increased taxes on tools, computers, servers, display monitors, sports equipment, and cast-iron goods.
Meanwhile, the European Union is raising tariffs on American beef, poultry, bourbon, motorcycles, peanut butter, and jeans.
These retaliatory measures will cost businesses billions, intensifying trade tensions. Companies will either absorb the losses or, more likely, pass higher costs on to consumers
