The Finance Minister said Europe should make the best case for how the trade deal with the United States is mutually beneficial.

It comes after US President Donald Trump announced he intends to introduce “reciprocal” tariffs against countries which have taxes against American exports - such as VAT.

In particular, he took aim at the European Union and said it was “absolutely brutal” to the US for trade.

On The Pat Kenny Show, Finance Minister Paschal Donohoe said the EU needs to make a case for mutually beneficial trade.

“If America wants to sell its goods and services to the rest of the world, what we have to be able to do is make the case for a form of trade that's mutually beneficial,” he said.

“What we will have to make the case for is saying that it can be in the long term interests of American companies and international companies to have manufacturing presences that are outside of America.

“But I would say, if you look at Irish companies investing into America, you know, we invest and have created and have supported the retention of over 100,000 jobs.”

President Donald Trump speaks to reporters. Feb. 13, 2025 (AP Photo/Ben Curtis)

Minister Donohoe said Europe continues to be a “very strong trading partner” with the United States of America.

“[Europe] is an attractive location for American and international companies to be located in,” he said.

“We want to reach negotiated outcome in relation to the trade challenge that we face and we [need to] also have the ability to respond back in a way that will be firm and proportionate.”

“I think any element of how Europe works its way through this challenge will be about what we're going to invest and what we're going to do differently in the future.

“We have to make the case for the value of the relationship that is there at the moment that will undoubtedly then look into the recent past and look at where we are today.”

Paschal Donohoe. 18/11/2024. Image: Newstalk

Minister Donohoe said to get to a better future “that future is going to have to change”.

“[We] just have to examine all options and it has to be done from a national but mainly from a European perspective,” he said.

“Just take it back to what is the origin of all this, in terms of the case that America is making -they believe that trade between America and the rest of the world is imbalanced; they believe it benefits the rest of the world in a way that doesn't benefit America.

“Of course, we'll have to look at all opportunities to avoid tariffs, to avoid trade declining, to see can we rebalance that trade - I can't give you a very specific answer yes or no on that particular issue, because it hasn't yet come to Government, but we do have to look at options.”

The White House fountain is died green to celebrate St Patricks Day, 17-03-2022. Image: Adam Schultz/White House Photo

In regards to the Washington St Patrick’s Day trip, Minister Donohoe said he has “rarely come across a challenge that gets any easier by not talking to the person on the other side of the table”.

“I think if and when the invitation is extended, it would be extended in the spirit of friendship, of recognising the value of the relationship that is there, and the value of the very large Irish community within America,” he said.

Minister Donohoe is confident that St Patrick’s Day will be “a positive event”.

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Main image: Split image of Paschal Donohoe (L) and Donald Trump (R).