Risk of 'transatlantic trade shock' increased due to election of Trump says Taoiseach

Taoiseach Simon Harris has said that the risk of a transatlantic trade shock has increased due to the election of Donald Trump as US President.

The Taoiseach made the comments regarding Trump's win in the US election as he arrived at the European Political Community summit in Budapest on Thursday.

As 47 European countries, including 27 EU member states, gather in Budapest, fears of the impact the Trump administration will have on support for the war in Ukraine is weighing heavy on the minds of EU leaders. 

Meanwhile in Ireland, there are concerns surrounding Trump's 'America First' policy and its repercussions for the Irish economy. 

Simon Harris acknowledged that the election of Trump may pose some risk for Ireland's transatlantic trade, but reassured that he is confident the President-elect will understand the two-way relationship in US-EU trade.

The Taoiseach said: "President Trump is a businessman. He is somewhat transactional, and I think he will understand that the relationship in terms of trade is a two-way relationship.

"Whilst there are many, many jobs in Ireland as a result of US foreign direct investment, there are also now Irish jobs from Irish owned companies in every single state in the United States of America."

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He added: "We do need to be aware that the risk of a transatlantic trade shock has now increased. I think that is a statement of fact.

"But we need to work our way through all of these things that we need to engage with the new administration at a European level.

"Trade is at an EU level, companies locate in countries for many reasons, not just tax, and at the end of the day President Trump will understand this as a businessman too."

The Taoiseach emphasised the strength of the EU market and Ireland's place within it, saying: "The European Union is a major market. It is a major market and a major opportunity for the US to do business with EU and for the EU to do business with the United States.

"Ireland has always offered not just a competitive tax offer, and not just worked at a global level in terms of settling those tax issues in terms of rates, but we've also offered talent."

Harris reminded reporters that Ireland has worked with Trump before in his previous administration and that it is important to assess what Trump will do as president, rather than what he says he will do.