Michael Lohan on US Tariff Threats and Global Trade Uncertainty

Impact of US Tariff Threats

• 💡 The latest tariff threats from the US president have introduced a significant level of uncertainty for global trade and international companies.
• ⚠️ This uncertainty can be disruptive, leading to delayed decision-making for foreign direct investment (FDI), as seen in the first half of the previous year.
• 🌍 Companies require global markets and presence, and potential tariff changes directly impact their ability to plan and operate.

European Response and Ireland's Position

• 🇪🇺 European leaders are considering responses, including limiting market access for American companies, which could be damaging to the global economy, not just Ireland.
• 🤝 IDA Ireland advocates for dialogue and negotiation to set aside tariffs and honor existing agreements between Europe and the US.
• ⚖️ The use of anti-coercion instruments should be a last resort, with a preference for dialogue and resolution to bring certainty to international trade.

Promoting Ireland Amidst Uncertainty

• ✈️ Despite geopolitical uncertainty, companies remain focused on international markets, innovation, and R&D.
• 📈 Ireland had a record year for attracting FDI, with a 36% year-on-year uplift, driven by first-time investments, strong R&D support, and workforce upskilling.
• 🌐 Companies are looking to increase supply chain resilience, decarbonization, and sustainability, creating ongoing opportunities for investment.

Outlook for the Year Ahead

• 🚀 The year ahead is expected to be hyper-competitive with continued challenges and a rapid pace of change in both geopolitical and technological landscapes.
• 🔄 Businesses must continue to adapt and remain agile to navigate the evolving global environment.