DAVY VIEW

The tariffs announced by President Trump last night were broadly in line with expectations, apart from the temporary exclusion of pharmaceuticals and semiconductors from otherwise blanket EU tariffs of 20%. Many countries are certain to retaliate strongly in an effort to pile pressure on the US, where large companies would likely favour a return to the status quo. The EU’s anti-coercion instrument looks set to target the US surplus of services ahead of likely negotiations. High uncertainty is bound to drive at least a temporary slowdown in the Irish economy. However, the correct response by the Irish Government remains no different to before – to aggressively prioritise delivery of housing and infrastructure.