Dáil Éireann Debate, Thursday - 10 April 2025
160. Deputy Brian Stanley asked the Minister for Finance the new measures, he plans to put in place in the case of lost revenue given that Trump and the US administration has imposed 20% tariffs; and if he will make a statement on the matter. [18141/25]
Amharc ar fhreagraLet me begin by saying that we deeply regret the imposition of tariffs by the US administration. Tariffs are economically destructive; they drive up the cost of doing business, put upward pressure on prices for consumers, all the while creating uncertainty for investment and future growth.
Regarding the specific measures announced on April 2nd, it is important to note that there remains uncertainty surrounding the degree to which the measures will be permanent and what the EU and global response will be. We will continue to work with the urgency that is required to assess how these specific announcements will impact various sectors across the Irish economy, as well as the potential impacts on the public finances.
It should be noted that widespread tariffs are just the latest tool used in the ongoing trend toward de-globalisation, a consideration that Government has had at the centre of its policy agenda for some time now.
Indeed, I have repeatedly highlighted the inherent risks associated with the windfall element of our corporation tax receipts and the importance of ensuring that these receipts are not used to fund day-to-day expenditure. That is why the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, funded from these windfall receipts, are so important.
This is a time of considerable international uncertainty. Government is determined to protect our economy, support and protect jobs, and keep our public finances safe. Government will evaluate what steps are necessary to do this, but we need to avoid doing anything that has such a cost that it in turn could create other difficulties down the line. In other words, the policy response needs to be sustainable over the medium-term.
It is important to stress that we are approaching the challenges ahead from a position of strength because of the careful management of our public finances: it is now more important than ever that we maintain a balanced and sustainable approach to fiscal policy.
