Trade benefits being replaced by ‘zero-sum thinking’ – Donohoe

By Jonathan McCambridge, PA

The benefits of trade are being “replaced by zero-sum thinking that is detrimental to living standards on all sides”, the Finance Minister Paschal Donohoe will say.

In his remarks to the National Economic Dialogue at Dublin Castle, Mr Donohoe will also say that tariffs are a symptom of the “new normal” in global economics.

Taoiseach Micheál Martin and Tánaiste Simon Harris are also addressing the event, a forum for consultation and debate on the budget.

Mr Donohoe will say that the global trade landscape “looks very different to what we have become accustomed to”.

He will say: “A complex interplay between geopolitics and economics is now playing out.

“This means that after decades of deepening economic integration, we are now navigating a markedly different environment – one shaped by economic fragmentation and heightened geopolitical tensions.

“This shift has significant economic implications, not just for trade, but for investment flows and long-term economic resilience.”

Mr Donohoe will also tell the event: “Tariffs are a symptom of this ‘new normal’.

“Their re-emergence is worrying – taxes on imports lead to higher prices for businesses and consumers and create disincentives for firms considering long-run investments.

“More generally, the benefits of trade are being replaced by zero-sum thinking that is detrimental to living standards on all sides.

“That is why the Government remains actively engaged in discussions at EU level and with key international partners to put forward an alternative approach that once again supports principles of openness and multilateralism.”

The Finance Minister will also tell the audience that Ireland’s economy has recorded a positive start to the year but that the future outlook is “clouded in uncertainty”.