US threat of drinks tariffs a serious issue, says Irish premier
Friday marks the final day of engagements of the Taoiseach’s US trip to mark St Patrick’s Day.
The threat of US tariffs on alcoholic drinks from the EU “is a very serious issue”, Irish premier Micheal Martin has warned.
The Taoiseach said Irish whiskey products had benefited from “extraordinary growth” in the US market, and that a tariff dispute could damage parts of the Irish economy.
He warned Europe “has to be strategic” in how it responds in the tit-for-tat trade dispute with US president Donald Trump.
“We’re going to engage strongly now with the Commission in respect of that issue, because it is a serious issue, not just for Ireland, but indeed for other European member states as well.”
Mr Martin was speaking on the last day of the annual US trip to Washington DC for St Patrick’s Day.
The diplomatic event this year was overshadowed by the looming threat of an EU-US trade war.
There is heightened concern in Ireland that the new US administration’s protectionist approach could pose a risk to an Irish economy which is significantly sustained by long-standing investment from US multinationals.
The US president said he does not want “to do anything to hurt Ireland”, but added that the trade relationship between the countries should be focused on “fairness”.
As the Taoiseach met Mr Trump on Wednesday, the European Commission announced its retaliation against 25% tariffs on steel and aluminium imposed by the US.
Previously suspended tariffs would affect a range of US goods including boats, bourbon whiskey and motorbikes from April, it said.
“I think Europe has to be strategic in this, because Europe actually enjoys a surplus in these products, in terms of the trade in spirits,” Mr Martin said.
“I stand to be corrected, but it could be a three-to-one in favour of the European Union products. So Europe needs to be strategic in terms of how it approaches this.”
He added: “None of this is easy, in the sense that once tariffs and counter tariffs start, it’s not good, and it can damage certain sectors of the economy.
“Given the strength of Irish spirits in the market, that is a concern for us, and I know for other countries, they will have other products for whom it will be a big concern.”
Mr Martin said surges in AI created a requirement to “have a more mature debate” around data centres.
While acknowledging there are challenges in pursuing that goal in a way that is consistent with the Government’s climate agenda, Mr Martin said “significant numbers in Dail Eireann are completely disconnected from the reality of economic life”.
He told reporters: “I understand the data centre issue – its consuming huge amounts of energy and we have a problem between 2025 and 2030. I think our problems will ease with the offshore wind that will come on stream in significant critical mass in the early 2030s.
“We can see where the end game or the promised land is in respect of offshore wind, and that would give us really a sufficiency of energy to deal with the AI revolution, to deal with the energy demands that would come from that.”
He added: “We have a challenge in the intervening period between 2025 and 2030, but I think we need to stop the demonisation of data centres.”
Friday’s engagements wrap up a week of diplomatic efforts in the US by Mr Martin, along with other Irish ministers, to coincide with St Patrick’s Day.
The Taoiseach’s visit included a Friends of Ireland luncheon at the US Capitol and a breakfast meeting with JD Vance at the US vice-president’s official residence.
At the start of the week, he took part in a fireside chat at the SXSW festival in Austin, Texas.
Mr Martin attempted to emphasise the “two-way” nature of trade between Ireland and the US during the trip, as he sought to develop positive relations with the new US administration.
The biggest disruption of the trip came at the Ireland Funds gala dinner on Thursday night where members of the Burke family, Evangelical Christians from Co Mayo, briefly disrupted proceedings before being ejected from the venue.
Mr Martin also refuted comments reportedly made by Israel’s ambassador to the US, Yechiel Leiter, who labelled the Taoiseach as antisemitic and commended Jewish leaders who cancelled a meeting with him.
“It’s just absurd that you would label someone antisemitic for being in favour of the principles of the UN in respect of their application to the Middle East,” the Taoiseach said.
