Trade war puts tax cuts and jobs at risk

Minister warns of 'slower pace of spending growth' for Ireland

- BY CILLIAN SHERLOCK

GOVERNMENT plans for tax cuts may have to be postponed due to the threat of a global trade war, Finance Minister Paschal Donohoe has said.

Models undertaken by the Department of Finance and the Economic and Social Research Institute show an intense US-EU trade dispute would risk increased prices, fewer new jobs and slower growth in the economy.

Minister Donohoe said it is “very possible” that between 50,000 and 80,000 jobs would be affected over the next five years, that would have otherwise been created or kept in the economy.

Under a worst case scenario, the minister said a global trade dispute would impact economic growth and living standards. He also said proposals to cut taxes may have to be delayed.