Dublin: The recent imposition of tariffs by the United States is beginning to take a toll on employment and business activity in Ireland, according to Danny McCoy, Chief Executive Officer of IBEC (Irish Business and Employers Confederation). McCoy revealed that some companies have already reduced employee working hours as early as this past weekend, with further disruptions expected across consumer goods and beverage industries in the coming weeks.
Despite the growing economic uncertainty, government support for affected workers and businesses remains limited, drawing criticism from industry leaders. McCoy expressed concern that while Deputy Prime Minister Simon Harris has acknowledged the instability ahead, the government has yet to announce any concrete relief measures. He also noted that employees may be forced to seek alternative work arrangements, particularly during weekends.
Government Urges Joint Responsibility
The government has indicated that the responsibility for addressing the crisis should be shared among employer organisations, trade unions, and the state. Deputy Prime Minister Harris stated that while the situation is being closely monitored, the government is not currently considering any special support packages for industries affected by the tariffs.
However, Harris highlighted the availability of the Short-Time Work Support under the Jobseeker’s Benefit scheme, which offers assistance to employees whose working hours are reduced. He emphasised that this mechanism provides a buffer for workers impacted by temporary reductions in hours but declined to go further into discussions about expanded measures at this time.
Finance Minister Rules Out Wage Subsidies
In contrast to Harris’s cautious optimism, Finance Minister Paschal Donohoe firmly ruled out the possibility of introducing a wage subsidy scheme similar to those deployed during the COVID-19 pandemic. While acknowledging the potential negative impact of the tariffs on economic growth and employment, Donohoe insisted that public finances remain strong, citing a budget surplus and an employment level of 2.8 million people.
Donohoe stated that the European Union must coordinate any broader response, calling for proportional and constructive measures in response to the US trade actions. He stressed that Ireland would work closely with the EU to mitigate the fallout and assist businesses in identifying new international markets.
Harris to Meet US Commerce Secretary
Deputy Prime Minister Simon Harris is scheduled to travel to the United States on Wednesday for a meeting with US Commerce Secretary Howard Lutnick. The talks are seen as a critical diplomatic effort to highlight Ireland’s strong economic ties with both the US and the EU and to seek clarity on the direction of US trade policy.
Harris’s visit comes following multiple consultations with the European Commission, which is also monitoring the escalating trade dispute.
Additional Measures Under Consideration
In a separate development, Minister Donohoe revealed that a comprehensive fiscal review will be published jointly with the Minister for Public Expenditure, assessing the broader economic outlook and potential policy adjustments.
Donohoe also hinted at potential regulatory changes to boost industry revenue, including the removal of mandatory health warnings from alcohol labels—a long-standing request from the beverage sector.
Additionally, Enterprise Minister Peter Burke is expected to bring forward a proposal to introduce two additional days of paid sick leave, with details to be presented to the Cabinet in the coming weeks.
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