Trump tariffs ‘deeply regrettable’ minister says | UK News

Economy Minister Caoimhe Archibald has described the tariffs announced by US President Donald Trump on Wednesday as “deeply regrettable”.

Northern Ireland goods entering the US will face a 10% tariff from Thursday, under a tariff which has been imposed on the UK as a whole.

Meanwhile, goods from the Republic of Ireland will be hit with a 20% tariff as part of measures Trump has imposed on the EU.

Archibald said a “trade war will only fuel inflation and risk recession”.

Earlier, Roger Pollen, head of the Federation of Small Businesses NI, said the full impact of the tariffs was not yet clear.

“We’re going to have to work out what’s the implication of this – where’s the cost going to fall,” Mr Pollen told News NI.

“All of those sorts of things will shake out over time but at the moment it causes a lot of uncertainty which is unwelcome.”

He added: “I wouldn’t want to suggest that 10% is low and that it’s not going to cause immense problems for a lot of people.

“I think it’s just lower than might have been feared.”

Northern Ireland’s Chamber of Commerce said it was reacting to Trump’s announcement on tariffs with caution.

Stuart Anderson, the chamber’s Director of Public Affairs and International Relations, said Northern Ireland was in a unique position and it was a “complex piece in terms of exports”.

“Yes, Northern Ireland is still part of the UK customs territory and therefore our exports on the face of it seem to have a 10% differential with the south (Republic of Ireland), however that’s really a complex question that really goes down to difficult things like rules of origin which are difficult to get to the bottom of,” he told News NI.

Fergal O’Brien of the Irish Business and Employers’ Confederation (Ibec) said the tariffs were bad news for the global economy.

He said the “UK was in a less bad position this morning”, compared to Ireland.

“Ireland and Europe has a larger trade deficit with the US and that’s the crudeness through which this has been calculated,” he told News NI.

“But as we sit here this morning, from an Irish economy perspective about 3% of our export value is going to be impacted by these tariffs, because pharmaceuticals has not for now been included – so about three in 100 of our export euros is impacted by these tariffs.

“If the US extends these tariffs to all exports from Ireland to the US, then it would be about one in 10 of our export euros would be impacted by these tariffs, so we still have 90% of our export trade not impacted.”

Mr O’Brien said he was also concerned about the challenges the tariffs would pose for the Windsor Framework going forward.

Jim Nash, joint owner of the Wild Atlantic Distillery, near Castlederg, County Tyrone, said the tariffs are “everything we feared”.

He said he also feared that any EU or UK response may provoke further US action.

Tariffs are effectively taxes applied to goods imported from other countries.

Governments impose them in the hope of protecting local manufacturers from international competition.

Announcing the tariffs at the White House on Wednesday, Trump said it would be remembered as the day American industry was “reborn”.

Prime Minister Sir Keir Starmer has told business chiefs in Downing Street that “clearly there will be an economic impact” from Trump’s tariffs – but the government will respond with “cool and calm heads”.

“Decisions we take in coming days and weeks will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table, in the interests of putting money in the pockets of working people,” he said.

European Commission President Ursula von der Leyen stressed that Europe would “stand at the side of those directly impacted”, having earlier noted that some of the world’s most vulnerable countries are being hit with the steepest tariffs.

John Campbell, News NI economics editor

After Brexit, Northern Ireland was left in a unique trading position.

Goods manufactured there have barrier-free access to both the EU single market and the UK market. No other UK region or European country has that arrangement.

That was supposed to make NI an attractive location for manufacturing investment- “the world’s most exciting economic zone” the former Prime Minister Rishi Sunak called it.

That hasn’t really happened – manufacturing performance has been muted.

But could the Trump tariffs inadvertently help fulfil some of that promise?

The 10% tariff on UK goods could give some NI exporters an advantage if they compete directly with producers in the Republic of Ireland who will face a 20% tariff.

Whiskey distilling is one example of that.

But this may be a relatively small benefit compared to the negative effect the Trump tariffs could have on global trade and economic growth.

Posting on X on Wednesday, First Minister Michelle O’Neill said she would prioritise “the prosperity and future of everyone who calls our island home”.

Economy Minister Archibald said she would “meet with businesses and trade unions to assess the unfolding situation, and the next steps”.

Democratic Unionist Party (DUP) leader Gavin Robinson said that “Northern Ireland remains exposed to potential EU retaliation, and local businesses must not become collateral damage”.

He told Radio Ulster’s the Nolan Show on Thursday that there will be an “economic shock as a consequence of the decisions taken last night by the United States”.

“For those businesses, particularly in Northern Ireland who are drawing product from the EU, where they’re buying their product from is going to be impacted by tariffs,” he said.

“It is a consequence of the Windsor Framework that anything we import could be hit with EU tariffs.

“If he [the prime minister] is saying that he’s going to take decisions in the national interest then that includes us too and he has a role in this to ensure that Northern Ireland does not become collateral damage.”

Alliance deputy leader Eoin Tennyson said: “Trump’s destructive trade war will damage living standards across the globe.”

Taoiseach (Irish Prime Minister) Micheál Martin said he could see “no justification” for the tariffs, adding that Ireland will reflect with its “EU partners on how best to proceed”.

Tánaiste (Irish Deputy Prime Minister) Simon Harris said the 20% tariff “could have a significant effect on Irish investment and the wider economy”.

Nina Carberry, a Fine Gael Member of the European Parliament, said a 20% tariff for goods entering the US would be a “major blow”.

She said she supported the European Commission in finding a “negotiated solution”.