Serious Economic Concerns Amid Rising Trade Tensions

ICC Ireland and Chambers Ireland have voiced strong concerns about the recent increase in tariffs on steel, aluminium, and electric vehicles, most recently seen in Canada this week.

Ian Talbot, Chief Executive of ICC Ireland and Chambers Ireland said:

“Trade barriers hinder both business growth and economic progress. Their ripple effect cannot be underestimated and we’re calling on global leaders to consider the broader impact of any further escalation. Additional restrictions will only lead to a harmful cycle of retaliatory measures, which would pose significant risks to Ireland’s open economy.

A balanced approach is needed at the global level to address these challenges. It’s crucial that we avoid needlessly disrupting international trade any further.”

Mr Talbot emphasised the importance of adhering to World Trade Organisation (WTO) rules when dealing with trade barriers, noting that doing so is vital to preventing a downward spiral that could affect Irish businesses.

He further commented on the role of domestic subsidies in driving recent tariff hikes by major economies:

“We are concerned that domestic subsidies have played a significant role in these recent tariff increases. This underscores the need for a global consensus on fair subsidy practices. Such an agreement is key not only to maintaining a stable and predictable trade environment but also to supporting the shift to a greener economy.”

"To ensure a fair and sustainable future, governments must collaborate to establish clear and consistent rules on subsidies, particularly those that contribute to our climate goals," Mr Talbot added.

"This is the only way to create a trading environment that benefits everyone while supporting the global effort to achieve a net-zero future."