TRADE UNION DESK: Ireland cannot rely on the United States
The early weeks of 2026 saw Donald Trump’s wrecking-ball impulses at work again as he demanded Denmark cede control of Greenland. His threats escalated over the course of a month, mooting tariffs ranging from 10 per cent to 200 per cent, and European leaders seemed wrong-footed over whether to appease him or oppose him, writes Irish Congress of Trade Unions (ICTU) General Secretary Owen Reidy.
One year into the second Trump administration, and this was the third time Trump had threatened tariffs against European countries, only to step back at the last minute. He has made no attempt to hide his antipathy for European nations or the European Union.
The particular difficulty for Ireland is that our economy, more than any other in Europe, is tied to the fortunes of the US economy and its political direction. The tariffs threatened by Donald Trump would pose a severe risk to the Irish economy, and by extension, hundreds of thousands of workers across Ireland.
The seemingly arbitrary nature of the tariffs threatened makes estimating their exact impact difficult to judge, though the Department of Finance estimated that 60,000 jobs were at risk from the tariffs proposed in early 2025.
There are certain lessons that Irish and European political leaders need to learn quickly if we are to survive the remaining years of the Trump administration relatively unscathed.
First, the Irish Government must have a ready-to-go plan for supporting workers in the event of tariffs. Consideration should be given to appropriate schemes, such as an adequate short-time work scheme, to protect jobs, workers’ incomes and skills in vulnerable but viable businesses.
The economic instability created by the first round of tariff threats gave us a raft of government row-backs on workers’ rights. A repeat of this and the Government will find out that you cannot sacrifice workers’ rights for economic stability. Government has to work constructively with trade unions and employers in responding to economic uncertainty.
Second, the volatility created by the Trump administration is a stark reminder of the risks associated with Ireland’s overreliance on corporate tax receipts. In the context of a hostile and vindictive US administration, Ireland’s economic model begins to look extremely risky.
The Government must look seriously and urgently at how we can derisk and reorientate our economic model to ensure stability and certainty. We can no longer allow our economy to be disproportionately exposed to the actions of any one country or sector. This is not about abandoning foreign direct investment, but broadening our tax base and employment bases to ensure we are not wholly reliant on FDI.
This is something that has been repeatedly stressed by the Fiscal Advisory Council, ESRI, Nevin Economic Research Institute, among others. The trade union movement has set out its own vision for how this can be done in our New Economic Model document.
The final lesson is one of morality. It is right that the Irish Government and European leaders sought to de-escalate tensions over Greenland through negotiation. However, negotiation should not mean appeasement of the Trump administration.
It is incumbent on European leaders to unite and push back coherently against the Trump administration’s continued assault on European sovereignty and democratic norms.
Whether in industrial relations or international relations, the principle of standing up to the abuse of power remains the same. We have seen the contempt and violence with which Donald Trump treats his own citizens, never mind his foreign allies.
Europe, including Ireland, must be willing to assert its values and shared interests in the face of these threats. If Government and its colleagues across Europe can demonstrate the mettle and vision required, we can emerge from this period stronger for it.
