Published: Wed, 26 March 2025
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Seán Kelly MEP, Leader of Fine Gael in the European Parliament, has urged the EU to stay united and firm in defence of free trade in response to US President Donald Trump’s anticipated announcement of new tariffs on European exports.
“Tariffs are bad for businesses, bad for workers, and bad for consumers on both sides of the Atlantic,” Kelly stated. “Rather than retreating into protectionism, the EU must lead by example and remain the global champion of fair and open trade. We cannot allow short-term political moves in Washington to dictate our economic future.”
Kelly emphasised that tariffs only serve to drive inflation and disrupt well-established supply chains. “We see no justification for the imposition of tariffs on EU exports. If President Trump proceeds, the EU will have no choice but to take measured, proportionate action to defend European businesses and workers. However, our ultimate goal must be dialogue, not escalation.”
The US is Ireland’s largest export market, with €72.6 billion worth of goods exported in 2024 alone. The pharmaceutical sector is particularly exposed, as 80% of Ireland’s pharmaceutical exports to the US consist of components essential to American manufacturers. “These tariffs would not only hurt Irish companies but also disrupt US supply chains, leading to higher costs for American businesses and consumers alike,” Kelly noted.
Kelly also warned against the dangers of a tit-for-tat trade war. “We cannot afford an escalating cycle of retaliation. Ireland has benefited enormously from global trade, and any move towards economic nationalism will ultimately damage growth and investment. The EU must push for negotiation while ensuring our interests are safeguarded.”
“The stakes are high, but Europe must show leadership. Ireland will stand with its fellow EU Member States and will push for a solution that maintains stability and protects jobs, while making it clear that unjustified tariffs cannot go unanswered.”
In addition to responding to US tariffs, Kelly urged the EU to proactively pursue new trade agreements to strengthen economic resilience. He highlighted the stalled EU-Australia Free Trade Agreement (FTA) as a key opportunity.
“We need to conclude the EU-Australia FTA, which would open new markets for European businesses, secure access to critical raw materials, and reinforce our presence in the Indo-Pacific. Strengthening trade ties with like-minded partners is essential in an era of geopolitical uncertainty.”
