The US Secretary of Commerce, Howard Lutnick, has once again criticized Ireland, labeling it his “favorite tax scam” and accusing the country of unfairly benefiting from US multinational companies.
Speaking on the All-In business and technology podcast this week, Lutnick claimed that Ireland holds intellectual property (IP) rights for major US pharmaceutical and technology firms, depriving the United States of tax revenue.
“They have all of our IP for our great tech companies and great pharma companies. They all put it there because it’s low tax, and they don’t pay us. They pay them [Ireland]. So that’s got to end,” he said.
Irish Government Defends Economic Ties with US
In response, Tánaiste Simon Harris emphasized the importance of maintaining strong US-Ireland relations. He described the relationship as “deeply integrated” and mutually beneficial, highlighting its role in fostering investment and job creation in both countries.
“Ireland deeply values its economic partnership with the US and the economic relationship between the EU and the US,” Harris said in a statement. “It is very much a two-way relationship that has strengthened over each generation and one that is based on mutual respect.”
He acknowledged that Ireland has significantly benefited from US investment but argued that American companies have also thrived in Ireland. “It has been a very good location for them in terms of our labor force and access to the EU single market,” he added.
Long-Standing Criticism of Trade Relationship
This is not the first time Lutnick has voiced concerns over Ireland’s trade relationship with the US. Previously, as CEO of Cantor Fitzgerald, he criticized Ireland’s trade surplus with the US, arguing that America no longer produces key goods domestically.
During a St. Patrick’s Day visit to the White House on March 12, former US President Donald Trump also raised concerns about the trade imbalance between the two nations. While stating he did not want to harm Ireland, he emphasized the need for a “fair” trade relationship.
“There’s a massive deficit that we have with Ireland and with other countries too, and we want to sort of even that out as nicely as we can,” Trump said, accusing the Irish government of using favorable tax policies to attract US pharmaceutical companies.
Potential Economic Consequences
A recent working paper by the Economic and Social Research Institute (ESRI) and the Department of Finance warned that Ireland’s domestic economy could shrink by 2% over the next five to seven years if US tariffs on EU goods are imposed. The report highlighted that Ireland’s export-driven industries, including pharmaceuticals and technology, would be the most affected by protectionist policies.
As tensions over taxation and trade policies persist, Ireland’s government continues to defend its position, emphasizing the mutual benefits of its longstanding economic partnership with the US.
