Next hours 'crucial' amid hope of framework agreement between US & EU on tariffs
However, Taoiseach Micheál Martin said that while it will provide 'some degree of stability', full details of a trade agreement between the two blocs will still have to be hammered out.
Wednesday marks the end of US President Donald Trump's '90 day pause' on tariffs.
On April 2, also known as Liberation Day, President Trump confirmed that all goods entering the US from the EU would be hit with 20 per cent tariffs.
Halfway through the pause, he suggested that 50% tariffs would be applied effective immediately. However, the pause was later reinstated.
Speaking at Government Buildings on Monday evening, the Taoiseach suggested that a framework deal was likely to be agreed in advance of Wednesday and that further details could be worked out thereafter.
He said: 'We remain hopeful that the US and the European Union can agree an outline agreement or framework principle agreement this week.
'[There are] still a number of issues being negotiated, nothing concluded yet definitively.
'But it does illustrate, though, that even if a framework agreement is arrived at, there will be a lot of negotiations subsequently.
'So therefore, whilst it would create some degree of clarity in terms of where we are in the short term, there will still be a number of issues outstanding in respect of that trade issue between the European Union and the United States and indeed between other countries and the US also.'
Mr Martin said that both sides were negotiating some of the 'fine detail' of the framework agreement but whether that would be agreed on Monday evening or Tuesday 'remains to be seen'.
He said that the US and EU were 'nearing agreement' on reciprocal tariffs, but there were 'still issues on the sectoral side', including with cars and automotives.
Mr Martin confirmed that the framework agreement will not clarify what will happen with the pharmaceutical sector.
The Taoiseach stated that the Irish Government is supportive of the European Commission's 'endeavour to get agreement' because it would 'avoid escalation' and 'enable some degree of stability, notwithstanding the need for ongoing negotiations on a deal'.
It was reported that the Trump administration was stepping up pressure on trading partners to make new deals before a Wednesday deadline, with plans for the US to start sending letters warning countries that higher tariffs could begin on August 1.
However, the Taoiseach said he 'anticipates decisions' this week and anticipates that there 'would be agreement on this framework work agreement'.
Public Expenditure Minister Jack Chambers said that Government is viewing the next 48 hours as 'critical'.
He said that the Irish Government is 'constantly engaged' with the European Union and is 'very conscious of the serious risks that are represented here, if there isn't an outcome or a framework, which we can see progress on after Wednesday'.
He added: 'We will obviously await the outcome of the discussions that are ongoing. The EU wants to have a constructive and positive outcome to the broader exchange that's ongoing.
'I'm cognisant of the process that's underway, but we would welcome any outcome that gives space to negotiate a conclusion.
'But it's still too early to say and it's a critical 24 to 48 hours.'
Minister Chambers once again stated that ministers will have to make choices and priorities as part of Budget 2026, stating that 'there are enough opportunities for ministers outside of the budget process to re-prioritise and re-examine' their funding and spending.
He also further ruled out once-off measures in Budget 2026, including for businesses, adding that, 'We are surrounded by uncertainty whether we have a deal or not'.
The urgency of the coming hours was also stressed by Tánaiste and Trade Minister Simon Harris, who stated that 'while progress may not be at the stage we would like, at this moment the key priority is that negotiations continue'.
He added: 'Even at this late stage, I would urge the US to constructively respond to an EU that wants to find a landing zone to this trade dispute that makes sense for all.'
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