The Irish government has revised down its economic growth forecasts due to global uncertainty and warned that a transatlantic trade war will lead to a further economic weakening.
It expects Ireland's domestic economy to expand by 2.5% this year, down from an earlier forecast of 2.9%.
In the event of a tariff war between the EU and US, it said growth this year would be forecast at 2%, falling to 1.75% next year.
The forecasts are for a measure known as Modified Domestic Demand (MDD) which strips out the distorting impacts of multinational companies.
The Irish Finance Minister Paschal Donohoe said: "The more contested and fragmented world that is now taking shape represents a serious headwind for the Irish economy which has benefited so much from the rules-based, multilateral trade system.
"Even in the absence of any further changes in tariffs, there is evidence that firms and households are adopting a 'wait-and-see' approach.
"In other words, they are holding off on big-ticket purchases; this is also a feature in other economies."