Nobel Prize-winning economist urges tariffs vs 'dysfunctional' US

Key takeaways from article and additional information marked with asterisk *

1. Stiglitz on US Policy – Nobel laureate Joseph Stiglitz criticized Trump's administration as "dysfunctional" and suggested tariffs on US multinationals in response.

1.1 Ireland, with its significant presence of US multinationals (e.g., tech and pharma companies), could face economic risks if other countries impose tariffs or taxes on these firms in response to US policies.

1.2 Higher Tax Burden – If the EU or other nations adopt Stiglitz’s proposal, Ireland-based US multinationals may face extra taxes, reducing their profitability.

1.3? Investment Impact – Increased costs or regulatory uncertainty could deter further US investment in Ireland.

1.4? Trade Relations – Ireland might be caught in trade disputes if retaliatory measures against US firms affect their European operations.

1.5 Job Market Risks – US firms employ a large Irish workforce; any financial strain could lead to job losses or slowed hiring.

1.5.1 *As of November 2024, approximately 210,000 people in Ireland are directly employed by 970 U.S. multinational companies.? Additionally, these companies support around 167,000 indirect jobs, bringing the total employment, both direct and indirect, attributable to U.S. multinationals to approximately 377,000 individuals.

1.6 Corporate Tax Policy – Ireland’s low corporate tax model, already under scrutiny, may face further pressure if global tax reforms accelerate.

1.6.1 *In 2024, Corporation tax receipts of €39.1 billion were collected. This figure is €15.2 billion, or 63.9 percent ahead of the previous year, with the bulk of the increase arising from the Apple case. Source: ICAI

1.6.2 *Foreign-owned multinationals contributed approximately 87% of Ireland's total corporation tax. Source: Revenue.

1.6.3 *In 2023 €116 billion of taxes and social contributions were collected.? Corporation Tax was 21% of total tax revenue, with almost €24 billion collected in 2023 (c.87% from foreign multinationals) 60% of CT was generated by 10 multinational companies. Primary Source: CSO.

2. Anti-Bribery Law – Trump froze enforcement of the Foreign Corrupt Practices Act, effectively allowing US companies to engage in bribery abroad.

3. Climate & Aid Taxation – Stiglitz proposed tariffs on countries neglecting climate action and taxing US firms to fund global aid programs if USAID is cut.

4. Global Tax Reform – Efforts to tax billionaires and multinationals fairly have stalled, with Trump withdrawing from OECD’s global tax deal.

5. Trump’s Reciprocal Tariffs – Trump announced "reciprocal tariffs," matching US import duties to those imposed by trading partners.

6. Impact on Emerging Markets – Countries like India and Thailand could face significant tariff hikes due to their higher duties on US goods.

7. EU's Response – The European Union condemned Trump's tariffs, warning of economic uncertainty and vowing to retaliate.

8. Economic Risks – Analysts warn that tariffs could stifle growth, raise costs, and worsen inflation, especially for poorer nations.

Read About Joseph Stiglitz