Imposing restrictions on US tech companies in response to President Donald Trump’s tariffs would be the “nuclear option”, the Tánaiste has said, writes Brian Mahon.

Foreign Affairs and Trade Minister Simon Harris travelled to Luxembourg yesterday to meet with EU leaders to discuss how to respond to Mr Trump’s 20% tariff on EU goods.

Both the Germans and the French are understood to be in favour of imposing fresh taxes on large US tech companies, many of whom have their EU base in Ireland.

A plan outlining which US sectors will be hit with retaliatory measures was expected late last night.

Asked about the Irish position on including tariffs on US tech and digital services in the EU response, Mr Harris said in Luxembourg: “If you were to get into that space, it would be an extraordinary escalation at a time when we must be working for a de-escalation.

“It is in many ways the nuclear option if you start talking about the use of the anti-coercion instrument [ACI] and the likes.

“So what we need to do here is, step by step in a measured way, consider how best to respond.”

The EU’s ACI was introduced in December 2023 to protect the bloc from “economic coercion” by non-EU countries.

Its use could see broad restrictions imposed against the US, not just impacting goods and services, but also foreign direct investment and financial markets.

Taoiseach Micheál Martin is keen to portray the measure as a last resort, saying it should not be used as the opening salvo in the EU’s response.

Yesterday, he said the EU’s response must be measured, and designed to limit damage to the bloc.