'It is very likely Northern Ireland will have to follow EU lead on retaliation against Donald Trump tariffs' says economist Esmond Birnie

​Dr Esmond Birnie of Ulster University said this is so because, despite having ostensibly left the EU, “we are de facto in the single market and EU customs union”.

There is, he concluded, “a very real danger friction in the Irish Sea border gets intensified”.

He also said that, if Northern Ireland ends up having to follow EU tariff rules, the government had argued this “will be ok because Northern Ireland [firms] buying in US components and materials will be able to claim back any such tariffs” if the goods stay in Northern Ireland.

“That mechanism is, however, time-consuming and cumbersome,” he said.

Meanwhile, the Alliance Party has described Donald Trump’s tariffs as “an act of economic self-harm that will threaten jobs and livelihoods in the United States and across the globe”.

A statement from its deputy leader Eoin Tennyson said: “We will impress upon both the UK and Irish governments the need to consider Northern Ireland’s unique position as part of discussions on potential retaliatory action well as the importance of working in cooperation with our neighbours and allies against these bully-boy tactics.

“Reports that the UK government is considering concessions such as slashing the digital services tax for US tech giants, and undercutting our agricultural sector, is deeply concerning.”

This is a reference to a 2% tax that was brought into force for major tech firms operating in the UK back in 2020.

The Trump administration opposes the tax and if the UK lowered it, it could help encourage Mr Trump to relax his tariffs on the country.

But, continued Mr Tennyson: “Such a move would only tie the UK economy to the folly of Trump’s isolationism and protectionism and line the pockets of actors like Elon Musk ...

“These platforms have wreaked havoc on democracy in the UK and they should not be rewarded for that with tax breaks and higher profits.”