Tánaiste warns U.S. Commerce Secretary Howard Lutnick that new trade barriers would harm shared economic interests
Tánaiste Simon Harris has written to U.S. Secretary of Commerce Howard Lutnick, cautioning against the imposition of tariffs on pharmaceuticals and semiconductors imported into the United States—two sectors that are critical to Ireland’s economy and central to its bilateral trade relationship with the U.S.
The correspondence comes in response to two U.S. government investigations launched by Lutnick, examining whether heavy reliance on foreign imports of pharmaceuticals and microchips could pose a national security risk. The outcome could pave the way for significant tariffs on international suppliers, including Irish exporters.
In his letter earlier this month, Harris described the U.S.–Ireland economic relationship as “mutually advantageous,” emphasizing that U.S. foreign direct investment (FDI) in Ireland is especially strong in the pharmaceutical and semiconductor sectors.
Harris acknowledged the U.S. government’s focus on national security but highlighted Ireland’s alignment with Washington’s strategic goals. “Ireland’s approach to national security is closely aligned with that of the United States,” he wrote, adding that Ireland is eager to collaborate on economic security matters.
Pharma and Semiconductor Integration
The Tánaiste outlined the structure of Ireland’s key industries, noting that pharmaceutical operations in Ireland primarily involve the production of active ingredients rather than finished products. He stressed the interconnectedness of U.S. and Irish pharma industries, describing them as “mutually reinforcing.”
Regarding semiconductors, Harris pointed to Ireland’s development of a “technology-rich and highly advanced semiconductor industry,” which plays a vital role in global supply chains and has benefitted significantly from U.S. investment.
Call for Stability and Predictability
Harris underscored Ireland’s value as a long-standing partner for U.S. firms, describing the country as a “highly attractive destination” for American companies due to its business environment and skilled workforce.
“Low tariffs on this sector can only aid in securing these supply chains for this critically important industry,” he noted.
Closing Warning Against Trade Disruption
Concluding his letter, Harris acknowledged the motivations behind the U.S. investigations but cautioned that raising costs in these strategic industries could backfire.
“Ireland’s trade with the U.S. helps support resilient, diversified supply chains and provides certainty of supply,” he wrote. “Increasing costs on two strategic sectors that face growing competition from other regions will not aid in supporting U.S. interests.”
The letter reflects growing concern in Dublin over the potential fallout from U.S. trade policy changes, particularly as global supply chains remain under pressure and geopolitical tensions continue to influence economic decision-making.
