'Very concerning': Twin threat to Cork-based industry and jobs as Trump threatens tariffs

A twin threat has emerged to two of Cork’s most significant industries following the White House meeting this week between Taoiseach Micheál Martin and Mr Trump, after the US president recently threatened a 200% tariff on alcoholic products from the EU.

On Thursday, in a post on his own social media platform Truth Social, Donald Trump threatened to impose a 200% tariff on alcohol products from the EU in response to an announcement on Wednesday by EU Commission president Ursula Von Der Leyen that the EU would be imposing 25% on a range of American products, including bourbon whiskey.

Following this, Mr Martin said that the Irish Government would engage with the EU Commission on the matter.

“Our view is that there needs to be a more strategic position,” said Mr Martin.

The Taoiseach said that he had seen “some patterns emerge” from the US’s engagement with Mexico and Canada on tariffs.

He called for increased dialogue between trade negotiators.

Irish Distillers based in Midleton produces a significant portion of the €450m worth of whiskey that is exported to the US annually.

The Taoiseach’s comments were welcomed by Irish Whiskey Association director Eoin Ó Catháin, who said the sector would need “strong advocacy for the weeks ahead”.

“We are confident that the Taoiseach and Government can provide that,” he said.

Mr Ó Catháin told The Echo that whiskey exports to the US were the industry’s largest export market.

He pointed out that, while the tariffs were threatened, they had yet to be implemented.

He described as “very concerning” the possibility that 200% tariffs would be imposed on Irish whiskey being exported to the US.

“It would be very detrimental to the people that produce our products and to those who enjoy them,” Mr Ó Catháin said.

He expressed optimism, however, that negotiations between now and April 2 — when the tariffs are expected to be implemented — would lead to a favourable resolution to the issue.

He pointed out that many US-based companies have interests in companies producing liquor in Ireland, adding that a Kentucky company owned the firm producing Carolan’s Irish Cream.

He also said that tariffs would have a double impact on them as they would be hit by tariffs on their products being exported to Europe and additionally imported from the EU.

PFIZER CONCERNS

The CEO of US pharmaceutical giant Pfizer suggested the company might relocate its overseas production plants in the US if it faced tariffs.

Pfizer employs 820 in its plant in Ringaskiddy, almost 20% of its 5,000-strong Irish workforce.

Pfizer CEO Albert Bourla has also been reported as suggesting that the company, which devised drugs such as Viagra, would consider moving its overseas plants to the US if it faced tariffs or other restrictions.

His comments were cited in a press briefing given earlier this week by White House spokesperson Karoline Leavitt.

The uncertainty provoked by the comments by the US president and the Pfizer CEO, against a backdrop of escalating tensions and uncertainty around a possible trade war between the US and EU, has prompted Cork South Central Fianna Fáil TD Séamus McGrath to express confidence that the US pharma giant remained “fully committed to its Cork production facilities”.

“Cork and Ireland has a very strong relationship with Pfizer. I believe that will continue for the long term,” said the Cork South Central TD.

“Ireland is an extremely attractive base for FDI [foreign direct investment] companies.

“While we should never take anything for granted, we must also be confident about our competitiveness internationally as a base for inward investment.”

Commenting on the wider picture regarding a crossfire of tariff announcements between Washington and Brussels, Mr McGrath acknowledged that there was a lot of uncertainty.

“I think this will settle down and common sense will prevail, as tariffs are counter productive and will only damage economic activity,” he said.

Comment has been sought from Pfizer Ireland about the reported comments of its CEO, Albert Bourla.

In comments reported on the Fierce Pharma website, Mr Bourla said: “We have all the capabilities here [in the US], and the manufacturing sites are operating in good capacity right now.

“If something happens, we will try to mitigate by transferring from manufacturing sites outside to manufacturing sites here.”

Menwhile, Mr Martin has said that the opposition’s criticism to his comment on housing in the White House was “over the top”.

During the meeting between Mr Martin and Mr Trump, the US president was asked about Ireland’s housing crisis.

Mr Trump replied that the housing crisis was because Ireland is “doing so well”.

“They can’t produce houses fast enough,” the US president remarked.

“That’s a good problem, not a bad problem.”

Leaning back in his chair and laughing, Mr Martin said: “That’s a very good answer, president.”

Asked about the comments yesterday, Sinn Féin finance spokesperson Pearse Doherty said people had said they “felt insulted by the Taoiseach”.

“It’s not a good look for the Taoiseach to be laughing about a housing crisis when we have record numbers of homelessness, including child homelessness, when we have such a scandal that hasn’t transpired because of the booming economy, it has transpired because the Government has deliberately decided not to build houses during much part of the previous decade.”

Mr Martin said yesterday that, during the Oval Office press conference, he was also asked what he would wish for Ireland.

He said: “I equally said in the press conference, very emphatically, when I was asked ‘what was the number one issue or what would I really wish for Ireland’, and I said: ‘The number one issue in Ireland is housing, and we need to build as many houses as we can, as quickly as we can, for young people in Ireland to be able to afford to buy or affordable rent.’

“It’s classic [for the] opposition to do that, and I think that was an over the top reaction.”