Donald Trump has called 2 April "Liberation Day" because it is the day he plans to launch a global economic war. Ireland will inevitably be impacted but the extent had been unclear. However, last night we learned that Donald Trump has pharmaceuticals in his cross hairs. He said, "... we love Ireland, but we're going to have that," referring to our pharma sector. Trump’s toxic love affair with the country could cost us dearly. Given that pharma comprises approximately €100 billion or 45% of our goods exports this is hugely concerning. The pharma industry and the people who work in it are a critically important part of our economy. We know tariffs will have a negative impact on Ireland. However, the ESRI warned that the impact could be much worse if pharmaceutical products are targeted. Are we now veering towards the worst-case scenario the Government has modelled? That could mean the loss of up to 80,000 jobs and billions of euro in lost trade. Nobody wants to be alarmist or cause unnecessary worry but we must be prepared for whatever economic threat is coming. We must do whatever we can at home and through our engagement with the EU to cushion the blows.

I do not think anything the Taoiseach said or did in Washington DC a few weeks ago could have changed this outcome. Donald Trump is megalomaniac convinced tariffs will turbocharge the American economy. He will not or cannot listen to facts, logic or reason. The Government is in no way responsible for Trump’s behaviour. It is, however, responsible for the reckless promises it made during the election. The country went to the polls just four months ago. It was obvious at that time from Trump’s election that there was huge economic uncertainty. Despite this, Fine Gael and Fianna Fáil spent the election promising tax cuts and large spending increases. The Social Democrats warned them this was a reckless approach. The Government has now admitted these tax cuts may never materialise. As a small open economy with huge trade with the US, Ireland is more exposed than most. How the EU decides to retaliate to Trump’s tariffs will have a huge impact on Ireland. The question is: as a small member state, how much input do we have into the EU response? As Eurogroup president, what is the Minister’s insight into this? Will he tell us about any plans for supports for impacted industries? Does he now regret making populist promises during the election which he is already rowing back on?

I thank the Deputy for, ultimately, during this week raising a serious economic challenge that confronts this country. I note he raised it in a very political context so let me respond first on that before I deal with the substantive issue regarding the threat and difficulty our country could face and our response.

I have in front of me the alternative budget of the Social Democrats. I attempted to see what reference or recognition the Social Democrats gave to jobs and the competitiveness of our economy. I looked at section 1 – I could not see it. I looked at section 2 – I could not see it. I had to go all the way down to section 15 of the Social Democrats’ alternative budget to find any reference to jobs and how we support our economy. Having scrolled all the way down through to section 15, I saw a reference to jobs – a simple, “increase funding for Enterprise Ireland”. I did not see any reference to the IDA, the organisation involved in helping us combat all of this.

I looked at the tax changes the Social Democrats proposed. I will remind Deputy O’Callaghan of them before I deal with the charges he made against us. It referred to the “Removal of the refundable element for unused R and D tax credits” – the very research and development tax credits that play a role in supporting businesses in our economy. It referred to “Abolishing entrepreneur relief on capital gains tax” at exactly the time when we want our entrepreneurs to do more. It referred to phasing out the special assignee relief programme which many of the decision-makers who lead the companies based here are on. That is the political commitment of the Social Democrats. That is what it indicated.

On what I, my party and the parties that make up this Government said, we were clear during debates and in our manifestos and crystal clear in the programme for Government that Fine Gael, Fianna Fáil and Independent politicians negotiated. It is laid out in black and white. We outlined what we would do in the event that we could avoid exceptional economic difficulties but we were honest in indicating what could happen. We went on to say that in this context – this was made crystal clear in a number of debates – the State and the Government would act to protect public services and our tax base and look at how we could support jobs in our economy. We showed honesty in answering that question. I wish the Deputy could show the same in putting his question to me.

The Minister was crystal clear in the election that he was going to deliver tax cuts. He is now being crystal clear that they are off the table. We called him out on that during the election campaign that it was irresponsible and reckless.

The Deputy is twisting his words.

I asked the Minister serious questions about the response on tariffs, which he has not answered. How the EU decides to retaliate to Trump’s tariffs will be critically important to Ireland. We are particularly exposed because we are a small open economy with huge levels of trade with the US. The Minister knows this. We are much more exposed than other countries. If the EU retaliation brings into the trade war industries and sectors important to Ireland and not already targeted by Trump, this will have a detrimental impact. Is the Minister confident the EU will take this sufficiently into account in deciding how to retaliate? This is important for the country. How will the industries most impacted by this trade war be supported?

I stood up and was willing to defend my record. I notice the Deputy was not willing to do the same in his points to me. That is very clear.

The Minister did not answer the question.

The Government laid out last week our analysis of what the impact could be on our economy.

On many occasions, both in the Dáil and elsewhere, we have outlined three priorities. Our first priority is how we engage with the United States of America and we acknowledge - as does Deputy O'Callaghan, in honesty - the difficulty of that engagement. Second, what we have made very clear is that engagement is now under way between Ireland and our partners within the European Union on what an appropriate response could be. Third, what the Government has been doing for many years, and will continue to do, is look at the measures that can be put in place to strengthen our budget, our jobs and our enterprise economy. I can only say that we approach all of this with budget surpluses, which Deputy O'Callaghan's party was always against, the set-up of funds and the use of those funds-----

The Minister has not answered what I asked.

I answered the Deputy's question very clearly regarding what we would do.

Minister, I ask you to conclude please.

I welcome the Social Democrats finally recognising the value of an enterprise economy.