'Maintain calm' - Waterford responds to Trump tariffs
US President Donald Trump announcing 'reciprocal tariffs' last week
"Maintain calm" and "act quickly" is the message coming out of Waterford at the announcement of Donald Trump’s sweeping "reciprocal tariffs", which were revealed last week.
Waterford hosts a substantial presence of US companies, which may be impacted, a point made by Taoiseach Micheal Martin last week, who said that the county has been a “good and attractive location for foreign direct investment companies, especially American multinationals in the pharmaceutical sector”.
For now, the pharmaceutical sector has been spared, with an official White House statement outlining that some goods, such as pharmaceuticals, will not be subject to the reciprocal tariffs.
Companies in and around Waterford will, however, be waiting with bated breath, as Trump has previously made suggestions that the sector could be hit at a later date.
Sources in Waterford say that swift but wise action is necessary.
US President Trump, on his so called ‘Liberation Day’ on Wednesday, April 2, announced a minimum baseline tariff of 10% on all imports into the US, with higher rates in place for some regions.
Irish exporters, along with the rest of the EU, will face tariffs of 20 per cent.
A White House publication outlines that these tariffs will remain in effect until such a time as President Trump determines "that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated".
In his announcement of the tariffs last week, Trump described the EU as “very tough with trade”, saying "it's just pathetic”.
In a statement issued moments after Trump’s 9pm Irish time announcement, Taoiseach Michael Martin said there was no justification for the tariffs.
“More than €4.2 billion worth of goods and services are traded between the EU and the US daily,” the Taoiseach said.
“Disrupting this deeply integrated relationship benefits no one. Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.
“Ireland’s priority is the protection of jobs and our economy. We are starting from a position of strength, and our economy is resilient.
“By working with Irish-owned companies, multinationals, our EU partners and bilaterally with the US, we can and will weather this storm.”
The following morning, Waterford Chamber of Commerce circulated an email to businesses in the county, which stressed the importance of proceeding with "caution and clear minds".
"We will be calling on Government to ensure our business community is supported during these uncertain times," the email said.
The Chamber says it will be engaging with businesses in the coming weeks, the results of which will form their lobbying agenda.
In a statement to the Waterford News & Star, Waterford Chamber CEO Gerald Hurley outlined the Chamber’s immediate response to the tariffs, saying that "calm, strategic action" is required.
Mr Hurley urged government and business leaders to "show restraint and adopt a strategic, long-term response to the imposition of the tariffs".
He outlined various key recommendations to mitigate the tariff impacts.
Amongst these recommendations was avoiding escalating trade tensions and focusing on smart, resilient policy decisions.
He also recommended better SME financing, removal of red tape measures to boost Ireland and EU competitiveness, and for supports to affected sectors through the offering of tax relief, emergency funding and supply chain advice.
Mr Hurley additionally called for the introduction of support measures for SMEs similar to those introduced during the Covid-19 pandemic, to safeguard jobs and ensure economic stability.
“Now is the time for cool heads, not retaliation,” he said.
“It is imperative we work closely with our European partners and focus on strengthening our economic resilience. While the pharmaceutical sector has seen some relief, this must serve as a wake-up call.
“We must act quickly but wisely,” Mr Hurley added.
Meanwhile, Waterford Sinn Féin TD Conor D. McGuinness raised the issue last week in the Dáil.
He commented that the exclusion of pharmaceuticals from the 20% tariffs imposed by the US on Europe is "a welcome silver lining" on "what was a bad day overall".
McGuinness said: “While the exemption of pharma from Trump's tariff plan is a welcome silver lining and a relief to people in Waterford and those working in the sector across the stage, concerns certainly remain.
“Yesterday in the Dáil I raised with the Taoiseach the risk to pharmaceutical jobs and highlighted that our greatest economic vulnerability is the failure by successive Governments to adequately invest in infrastructure, domestic job creation and economic diversification. This is particularly true in Waterford and the South East, which has suffered decades of neglect."
McGuinness added that a lack of investment from Government into the south east has already placed the region in a difficult position, one which may now be further strained by tariff implications.
“Delays and disinterest from Government when it comes to major transport infrastructure, such as the airport, Waterford Port, the N25, and N24, coupled with the failure to deliver on health and housing locally, have had major implications for our regional economy and competitiveness.
“The pharmaceutical sector is a major employer in Waterford, the South East and across the state. While many workers and families in Ireland will be breathing a sigh of relief this morning, significant concerns remain.
“This is the opening salvo of what could become a protracted trade war. Government must put in place a strategy to safeguard our pharmaceutical sector, to protect jobs and to offset the vulnerabilities caused by decades of official neglect and indifference."
