Business leaders have met with Economy Minister Caoimhe Archibald to express concerns over the potential impact US President Donald Trump’s tariffs could have on the Northern Ireland economy.
It comes as financial markets all over the world reported falls on Monday after President Trump imposed trade tariffs last week.
Archibald said she has been engaging with both the British and Irish governments on the trading circumstances.
The Confederation of British Industry in Northern Ireland also warned that financial markets are in a for a “bumpy ride ahead”.
Archibald said she will be putting a number of asks to the British and Irish governments.
“Most importantly that the north and our unique trading circumstances are taken into consideration in any negotiations and next steps that they are taking,” she said.
“And that both the British government and the EU are working closely together because divergence is not good for us.”
There is an added complexity for NI businesses as, while they are based in the UK, Northern Ireland is also in the EU single market for goods.
The minister said she does not yet know the full detail of how the tariffs will be applied, describing it as “an evolving picture”.
Some EU counter measures in respect of earlier tariff announcements will likely be revealed on Monday, the minister said.
“That will all interplay in terms of how it will impact on businesses here and it is something that we will be looking at for days and weeks in terms of trying to get a fuller understanding,” she said.
‘Goods at sea’
Business groups were seeking clarity around the many unknowns at the meeting.
Stuart Anderson from NI Chamber said: “There were goods at sea when this announcement was made on Wednesday, there’s a question mark over what happens to them.
“There’s a question mark too over what tariffs apply to what category of goods so for example there is an exemption for pharma – what does that mean for medical devices?
“These are the types of questions we are getting from members all the time.”
What tariffs have been imposed?
Northern Ireland goods entering the US will face a 10% tariff under a measure that has been imposed on the UK as a whole.
Meanwhile, goods from the Republic of Ireland will be hit with a 20% tariff as part of measures Trump has imposed on the EU.
‘Whenever there’s tariffs, nobody wins’
Angela McGowan from the Confederation of British Industry in Northern Ireland said the markets are reacting to the “uncertainty and the implications around the world for inflation and job creation”.
“When trade goes down, we all suffer. A trade war is in nobody’s interests,” she said.
Ms McGowan explained that for those who may not have an interest in the financial market, “the reality is people have their pension funds in equity markets”.
“When commodities change prices and there’s a lot of volatility, you’ll see that expressed through inflation, the price you pay in the shops,” she added.
“Whenever there’s tariffs, nobody wins, prices go up for everybody.
“The US is a big global market, they always say when the US sneezes, everybody catches a cold.
“So uncertainty is ahead and even if President Trump was to row back on tariffs next week, investors will never be confident about where they stand,” she added.
By BBC News
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