‘Ireland was very smart’: Trump says tariffs will target pharmaceutical companies
James Cox
Donald Trump has said he will attempt to get US pharmaceutical companies back from Ireland.
It comes after the US president signed an executive order to impose a 25 per cent tariff on cars imported into the United States.
He sees tariffs as a tool to raise revenue, to offset his promised tax cuts, and to revive a long-declining US industrial base.
President Trump has his sights set on getting other companies back as well.
Ireland was very smart, we love Ireland, but we're going to have that.
Speaking in the White House, he said: “We’re going to be doing tariffs on pharmaceuticals in order to bring our pharamceuticals back.
"We don't make anything here, in terms of medical drugs... it's [made in] another country. It's largely made in China, a lot of it made in Ireland.
"Ireland was very smart, we love Ireland, but we're going to have that."
Mr Trump has previously threatened tariffs of "25 per cent or higher" on foreign-made pharmaceuticals.
“This will continue to spur growth,” Mr Trump said when discussing the imported car tariff. “We’ll effectively be charging a 25 per cent tariff.”
The tariffs could be complicated as even US car makers source their components from around the world, meaning that they could face higher costs and lower sales. Shares in General Motors fell by about 3 per cent in Wednesday afternoon trading. Ford’s stock was up slightly, but shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4 per cent.
Mr Trump has long said that tariffs against car imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the US.
Mr Trump was joined in the Oval Office by his commerce secretary Howard Lutnick.
Speaking on the All-In Podcast last week, Mr Lutnick said Ireland is running a €60 billion surplus.
The reality is that the country’s surplus is closer to half that amount.
“We’re going to try and fix a whole bunch of these tax scams – Ireland is my favourite.”
He added: “What do they do? Oh, they have all of our (intellectual property) for all our great tech companies and great pharma companies.
“They all put it there because it’s low tax. They don’t pay us, they pay them – so that is going to end.”
Minister for Foreign Affairs and Trade Simon Harris discussed the claims with Mr Lutnick in a call this week.
Asked if Mr Harris had corrected Mr Lutnick on this figure, a spokesman said: “The Tánaiste set out the position of Ireland’s perspective and laid out some of the details of Ireland’s surplus, for example, but also the two-way economic relationship.”
Pressed on whether this included a clarification on the budget surplus figure, the spokesman said he had nothing further to add to a statement on the call which had been issued earlier.
