Trump fights trade war on multiple fronts as Canada and EU retaliate

12 March 2025, 17:41 | Updated: 13 March 2025, 04:59

Donald Trump has launched a fresh attack on the EU during a meeting with Irish premier Micheal Martin in the Oval Office.

The US president said he did not want "to do anything to hurt Ireland" but added that the trade relationship between the countries should be focused on "fairness".

It comes after the president imposed 25% tariffs on global steel and aluminium imports to the US - prompting Canada to announce retaliatory tariffs on US goods worth $29.8bn (£16bn) from tomorrow and the EU to impose counter tariffs on €26bn (£22bn) of US goods from 1 April.

Meanwhile, Sir Keir Starmer said he was "disappointed" to see the president impose global tariffs on steel and aluminium and promised to "keep all options on the table" in how the UK would respond.

During Mr Trump's meeting with Mr Martin, the president raised the "massive" trade imbalance between the two countries and said Ireland was "of course" taking advantage of the US.

He said the EU was "set up in order to take advantage of the United States".

Asked by Sky News' Ireland correspondent Stephen Murphy if Ireland was also taking advantage, Mr Trump replied: "Of course they are."

He added: "I have great respect for Ireland, for what they did and they should have done just what they did. But the United States shouldn't have let that happen. We had stupid leaders, we had leaders who didn't have a clue.

"All of a sudden Ireland has our pharmaceutical companies, this beautiful island of five million people has got the entire US pharmaceutical industry in its grasp."

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Mr Trump said he loves Ireland, where he has a golf course - but said he wishes the US had "not been so stupid for so many years, not just with Ireland, with everybody".

Many US pharmaceutical companies have set up their manufacturing facilities in Ireland due to its low 12.5% corporate tax rate.

Irish firms then pay a royalty fee to US parent companies so they can use formulas to make products - meaning Ireland could be the hardest hit EU member by Mr Trump's 25% tariffs.