The Agriculture Minister has said that Europe doesn't want to get into a "tit-for-tat" trade war with the US.

This comes after US President Donald Trump announced a 25% tariff on vehicles imported into America.

President Trump also said the US will be introducing tariffs on pharmaceuticals, citing Ireland as he spoke in the Oval Office.

Agriculture Minister Martin Heydon told The Pat Kenny Show that turbulent times are ahead but Europe wants to respond calmly.

“What we have done is had a calm, cool conversation inside to make sure that the approach of the EU has the most impact, so that when the EU is putting stuff on a counter list, it is something that will have an impact in the US that could help bring them to the table in terms of these negotiations,” he said.

“The last thing we want to do is to get into a tit-for-tat.”

However, European Union Commission Spokesperson Olof Gill has said the EU is prepared to deliver a robust response to tariffs imposed by President Trump “if necessary”.

“We are prepared to safeguard our economic interests, and if necessary, we will deliver a firm, proportionate, robust and well-calibrated and timely response to any unfair and counterproductive measures from the US,” he said.

The tariffs are due to take effect on what the US President is labelling 'Liberation Day ' on April 2nd.

President Donald Trump speaks to reporters in the Oval Office of the White House, where he signed an executive order, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)

“Ireland and the US enjoy a significant and mutually beneficial economic relationship with last year marking 100 years of diplomatic and economic relations between our two countries,” an IDA Ireland spokesperson has said.

“IDA Ireland partners with more than 1,800 FDI client companies, 766 of which are US companies that directly employ over 210,000 people and indirectly support an additional 166,000 jobs.

“Conversely, Ireland is the 6th largest source of foreign direct investment into the US, with investment by Irish companies in 2023 worth $351 billion.

“More than 200,000 people are employed by 770 Irish companies across all 50 States.”

Euro currency cash bank notes money blue background. Image: Alamy

Regarding tariffs, the IDA spokesperson said it’s crucial to note that no US tariffs have been imposed on Ireland or Europe to date.

However, according to the IDA, Ireland’s view on tariffs is clear – “they are economically counterproductive and would disrupt deeply integrated transatlantic supply chains”.

“Tariffs drive inflation, negatively impacting consumers on both sides of the Atlantic. Increased protectionism is in nobody’s interest,” a spokesperson said.

“It’s important to realise that while Ireland has a surplus in goods with the US, it has a much larger deficit in services, meaning the overall trade balance is over €100bn in favour of the US.

“Notably, the proposed US tariffs currently being spoken about only apply to goods.”

Donald Trump and Micheál Martin. Image: Newstalk.

An IDA Ireland spokesperson said that it is also of note that Ireland serves as an important location for US multinationals to serve global markets.

“US companies see Ireland as an entry point to the EU and to access wider global markets with 85% of overall exports (60% goods and 95% services) going to Europe and the ROW,” they said.

“Ireland’s proven track record, built over 75 years, as a place to successfully implement complex and scaled FDI projects, is also a critical factor for companies making the decision to invest in Ireland.”

In relation to the pharma sector specifically, an IDA Ireland spokesperson said “the activity of the Irish subsidiary and the American parent complement, rather than substitute for each other.

“Ireland [is] operating as an export base to the EU for manufactured products, a value-added creator in the global production chain, and as the centre for European customer care.

“We estimate that of the pharma products going back to the US, up to 85% are intermediate goods, so there is additional added value and jobs supported in the US economy.”

Minister of Agriculture, Martin Heydon attends in an European Union agriculture and fisheries council meeting. 24th Mar, 2025. Credit: ALEXANDROS MICHAILIDIS/Alamy Live News