The Government's "over-arching priority" is to protect Irish jobs amid concerns US President Donald Trump's incoming tariff plans could see pharmaceutical and other firms reduce their presence in Ireland, Taoiseach Micheál Martin has said.
Speaking to RTÉ News at an event in Limerick, the Taoiseach said "tariffs are bad for the world economy and a trade war will be very bad for the world economy".
Mr Martin added that after an era in the 1990s and early 2000s of globalisation, "we're now moving into an era of potential protectionism" involving "tariffs and retaliatory tariffs", warning "that's not good for anybody".
Tánaiste Simon Harris also said the country is facing economic challenge and turbulence ahead as the prospect of US trade tariffs hangs over the country.
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He said: "We're highly likely to be entering a time of extraordinary economic challenge and turbulence in Ireland and the EU.
"I think Ireland needs to approach the next number of days, weeks and months with two things in mind, controlling what we can control and influencing what we can influence"
He said Ireland will work with the EU "hand in glove" at this moment of "serious challenge" and expressed the need for negotiations with the US over any tariffs that are announced.
"I really hope that after the moment of reveal that President Trump seems intent of having next week that there is very quick engagement and negotiation between the EU and the US to find a way forward."
It comes after Mr Trump said the US will be introducing tariffs on pharmaceuticals - specifically citing Ireland among the countries where many pharmaceutical products are made.
Mr Trump said on Wednesday that his proposed tariffs are intended to bring pharmaceutical production back to the US claiming, "We don't make anything" domestically.
Mr Trump also unveiled a 25% tariff on imported vehicles, expanding a global trade war and prompting criticism and threats of retaliation from affected US allies.
Asked if the US tariffs plan could see pharmaceutical firms in Ireland leave Ireland or reduce their presence in the State, Mr Martin said: "I think we have to take this step by step, they're [pharmaceutical firms] long-standing and embedded, and are producing high quality and essential medicines, so you just can't dismantle that overnight.
"Our objective is to engage with a view to working through this, and the over-arching priority is the protection of jobs and the protection and maintenance of facilities in Ireland.
"But it is serious, this is a fundamental change in terms of economic policy."
He added: "If you look through from the late 1990s and 2000s onwards, we were in an era of globalisation.
"We're now moving into an era of potential protectionism and tariffs and retaliatory tariffs, that's not good for anybody."
Mr Martin said the Government is "working through" plans "in terms of how we develop a response to this".
He said this includes strengthening Ireland's indigenous businesses, "copper-fastening existing relationships" with countries like Canada, and working with other EU member states in "expanding the single market".
Mr Martin added that he has had "brief discussions" with European Commission president Ursula von der Leyen about what measures may be needed, but said Ireland will "also be engaging bilaterally" with the Trump administration.
Minister for Transport Darragh O'Brien has said the Government is in contact with the pharma industry as the prospect of US tariffs looms closer.
"We have had contact with pharmaceutical companies her in Ireland. I know the Tánaiste as Minister for Trade has, indeed so has the Taoiseach. I would expect there would be continued and accelerated detailed engagement with that sector in particular, in advance of 2 April.
"I know it's happening already but obviously their experience and their view on how we can navigate this uncertain time is really important."
The minister was asked if roads funding might be affected in the future, if tariffs were to impact the economy.
"I don’t foresee a situation where investment in capital as such, in the NDP would be impacted by the current geopolitical situation.
"We have to continue to invest in our infrastructure to underpin a modern economy and a modern society as well."
Donohoe 'extremely concerned' over potential impact of tariffs
Last night, Minister for Finance Paschal Donohoe said he is "extremely concerned" about the potential impact of proposed US tariffs on pharmaceutical exports, warning they could deliver a major blow to Ireland's economy.
Speaking on RTÉ's Prime Time, Mr Donohoe said the Government is preparing for "real and significant" difficulties if Mr Trump follows through on threats to impose tariffs on drug imports, including those from Ireland.
"I want to underline the scale of the change that we might have to deal with, the various significant and real difficulties that could present for our economy," the minister said.
He said the Government is preparing for serious disruption - but expressed confidence that Ireland is well equipped to meet the challenge.
"I believe that collectively, we will be able to rise to the test. I'm not going to deny for a moment, there will be challenges. It's going to be so difficult, but that's where our focus and our work will now begin," he added.
