Simon Harris urges against tariff hikes on microchips
TÁNAISTE SIMON HARRIS has warned the US administration of the negative consequences of imposing tariffs on imported pharmaceuticals and microchips.
Tánaiste Simon Harris has cautioned the US administration about the potential fallout from imposing tariffs on imported pharmaceuticals and semiconductors, warning that such measures could undermine shared economic and security interests.
Harris wrote to US Secretary of Commerce Howard Lutnick after the launch of two investigations examining whether America’s reliance on overseas supplies of pharmaceuticals and microchips poses a national security risk. The probes could ultimately lead to substantial tariffs on products exported to the US from countries such as Ireland.
In his letter, sent earlier this month, Harris emphasised that Ireland and the United States benefit from a “mutually advantageous” bilateral economic relationship. While acknowledging that US foreign direct investment in Ireland is heavily concentrated in sectors including pharmaceuticals and semiconductors, he stressed that Ireland’s approach to national security is closely aligned with that of Washington and signalled a willingness to cooperate on economic security issues.
The Tánaiste outlined Ireland’s role within both industries. In pharmaceuticals, he noted that Irish facilities primarily produce active ingredients rather than finished medicines, making the sector deeply integrated with US manufacturing. “Ireland’s pharmaceutical sector is embedded in that of the US; the two are mutually reinforcing,” he wrote.
Turning to semiconductors, Harris highlighted Ireland’s “extensive and technology-rich” chip ecosystem and its longstanding reputation as a leading destination for US investment. He argued that maintaining low tariffs would help secure resilient supply chains in a strategically vital industry.
Concluding his letter, Harris acknowledged the national security rationale behind the investigations but warned that higher costs in two globally competitive sectors would not serve US interests. Ireland’s trade relationship, he said, strengthens supply chain resilience, diversification and certainty of supply.
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