CEO Update: Volatility and uncertainty still biggest concern for business
Dear member,
As we close out another turbulent week for global trade, I wanted to take the opportunity to share some reflections.
Firstly, whilst the decision by the US administration to reduce tariffs with most countries, including the EU, is welcome, this is still a crisis for globalisation that has benefited Ireland enormously. Hopefully this will create space for further dialogue with the potential to reach a deal that protects transatlantic trade but if the full 90 days are used up, it will dampen confidence and depress investment decisions. Ibec will be doubling down on our efforts—via our Brussels network—to advocate for a resolution during this pause period. Crucially, this week’s change by the US levels the playing field with other countries selling to the US and also provides time to address potential Windsor Framework challenges on the island of Ireland.
However, the escalating trade tensions between China and the US remain a serious concern, with the potential to cause significant market disruption in Europe as well.
We are also acutely aware that the blanket 10% tariff, which remains in place, will continue to impact sectors that are highly reliant on the US market—a message we shared with Oireachtas members yesterday.
The situation remains extremely volatile. In addition to the 10% blanket tariff, EU industry is also affected by US tariffs on steel, aluminium, and the auto sector. The EU has decided to pause any response to these US tariffs, including the 10% blanket tariff, for a period of 90 days.
While there is a degree of reprieve, the overall unpredictability and ongoing uncertainty as noted are highly damaging to the business and investment climate. We will continue to engage with the Government and at the EU level to emphasise that the current volatility remains a serious concern for our businesses—one that is likely to lead to a slowdown in investment decisions for many companies. In particular, we will push for the introduction of more effective short-time working supports to ensure that impacted workers are protected by the State.
Regards,
Danny McCoy
CEO
Ibec
