Government must step up preparations for potential damaging US tariffs on Irish whiskey and other products – Donnchadh Ó Laoghaire

Sinn Féin spokesperson on Foreign Affairs and Trade, Donnchadh Ó Laoghaire TD, has expressed alarm at the potential implications for Irish whiskey if US Government tariffs of 200% are introduced.

The Cork South Central TD was speaking after the announcement by US President Donald Trump of his intention to apply a 200% tariff on European alcohol products.

Teachta Ó Laoghaire said:

“The Irish whiskey industry has gone from strength to strength in recent years, across the world but including in the US market. It has doubled its market share in the last decade.

“This is not only the major distillers but also several smaller craft distilleries. President Trump’s threat of 200% tariffs raises huge concern regarding those jobs, and I would be very concerned about the impact of this.

“Last month I called on the government to ensure that we were using our voice at European level to ensure that the sectors that most affect Ireland are central to any European negotiating policy. Clearly this includes pharmaceuticals, life sciences, aircraft leasing, as well as tech and financial services, but it also includes distilling.

“The whiskey industry was caught in the crossfires during the first Trump administration and had an impact on the industry and, at that time, Britain was still a member of the EU.

“Britain’s exit from the EU and therefore their products, in particular scotch whiskey, potentially not being affected, makes the possible implications of US tariffs even more severe.

“The government must outline what actions it has been taking to influence the strategy of the EU in relation to tariffs on various products and services, not only whiskey, but wider food and drink, aircraft leasing, pharmaceuticals, tech and financial services, and all other key industries. Are we making our voice heard in terms of the approach of the EU?

“It is also undoubtedly time now, as I called for last month, that the government begins to plan for diversifying in terms of markets we trade with, and with a view to future trade missions.

“The United States, Europe and Britain will always be our main trading partners, for reasons of language, culture, and long and deep relationships. But there is potential to deepen trade with countries in South East Asia, other emerging markets, as well as other countries that may be affected by tariffs, including major economies such as Canada and Mexico.

“We must also begin preparation for supports for our businesses in the event of tariffs coming into effect. This can take the shape of some of the supports put in place for Brexit, while building on the learnings from them.

“Ireland is vulnerable to a trade war, of that there is no question. The fact is that the industrial policy strategy of recent governments, and our failure to develop a strong enough indigenous sector to complement our strong foreign direct investment (FDI) sector, has left us uniquely vulnerable.

“This has not been helped by the creation of various taxation loopholes that allowed some commentators to convey us as a tax haven. Successive governments have failed to build the infrastructure that we need to attract FDI without relying on tax incentives.

“I am urging the government to step up preparations for wider potential tariffs, and to use whatever influence possible in the EU and the US to safeguard Irish drink and food products.”