Trump tariff threat a 'lose-lose scenario' - minister
The possibility of tariffs being placed on agri-food exports to the US with the incoming administration of Donald Trump is a "lose-lose scenario" according to Minister for Agriculture, Food and the Marine Charlie McConalogue.
Trump is set to be inaugurated US president for the second time in less than two weeks. The president-elect has frequently indicated his intention to use tariffs on imports to the US on a wide range of products from many markets around the world as part of his economic and geopolitical agenda.
Speaking at the launch of the Bord Bia Export Performance and Prospects Report for 2024/2025 today (Wednesday, January 8), Minister McConalogue said that any tariff friction is "a threat to our food exports and the value of what we do, and indeed to incomes across the agri-food sector".
"From our point of view as a government, working within the EU as well, it's going to be really important that we try and ensure that there is good relationships there, and that there is good, fair, free trade in place.
"We did have experience in recent years with the US in terms of tariffs being in place, which is a challenge then to unwind, so it is going to be a diplomatic imperative, I think, for all of us to work together to try and make sure that any challenge from that is minimised," the minister added.
The minister said that the incoming government will be working towards maintaining the current state of trade relations with the US.
"We all know it's a lose-lose scenario whenever you get into a scenario where free trade becomes impinged and costs come up," he said.
"It reduces profitability and it increases costs to consumers as well, so it's something we're very much conscious of, and...we want to try to maintain the current situation and we'll be working to try and ensure that that does continue."
Commenting on the Bord Bia export performance report released today, Minister McConalogue said it is a "good way to start the year".
He said that 2024 turned out to be "a pretty positive year...across pretty much all of our sectors, after what was, this time last year, a more challenging outlook and a much more difficult 2023".
According to the minister, food will become "more valued" among consumers in future.
"As we go forward, food is going to become more valued in the wider consumer space, and that's important because, for a sustainable food system, we need to see farmers and primary producers being able to be recognised in terms of the work they do through the income they make.
"That has always been a challenge. It's positive to see prices where they are at the moment, and it's going to be important for a sustainable food system that we see that continue and have priority and recognition as we go forward," he said.
