IDA Ireland's Michael Lohan Talks Tariff Threats

Summary

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Bloomberg Talks

Episode: IDA Ireland's Michael Lohan Talks Tariff Threats

Date: January 19, 2026

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Episode Overview

This episode explores the mounting tensions between the US and Europe over tariff threats, just as the World Economic Forum begins in Davos. Bloomberg host Stephen interviews Michael Loewen, CEO of IDA Ireland, on the impact these uncertainties have on foreign direct investment (FDI), Ireland’s economic resilience, and the importance of international dialogue. The conversation delivers insight into how multinational companies are navigating trade volatility and how Ireland continues to position itself as a destination for investment amid geopolitical shifts.

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Key Discussion Points & Insights

1. The Rising Tariff Threats and Global Trade Uncertainty

[00:17–01:35]

• Recent tariff threats from the US are causing uncertainty at the World Economic Forum.
• Michael Loewen describes the last 48 hours as introducing "another level of uncertainty for global trade."
• He notes that global companies require clarity to plan investments and expand workforces, which is hampered by tariff volatility.
  • Quote: “What they look for is they need global markets, they need global presence and global workforce…when you have…potential changes in terms of tariffs, that can be disruptive.” — Michael Loewen [00:51]
• FDI flows were already affected in early 2025, with decisions delayed due to uncertainty.

2. Corporate Frustration and Resilience

[01:35–02:37]

• Stephen queries whether US corporate frustration is mounting due to unpredictable policy changes.
• Loewen responds that while decision-making was delayed, companies are resilient and continue to find paths forward.
  • Quote: “Companies found paths and…decisions have to be made in order to support innovation, in order to serve markets…resilience of the enterprise base will continue.” — Michael Loewen [01:47]
• He likens the current situation to déjà vu from April 2025, highlighting persistent complexity in the global environment.

3. Potential EU Retaliation and its Impact on Ireland

[02:37–03:47]

• Discussion shifts to the EU’s possible use of anti-coercion measures, which could restrict market access for US companies.
• Loewen contends this would be damaging not only for Ireland but for the global economy.
  • Quote: “It would actually have an impact in both directions…We need to bring certainty to international trade because it is the lifeblood of all of our economies.” — Michael Loewen [02:55]
• Emphasizes the importance of honoring existing agreements and engaging in dialogue instead of escalation.

4. Ireland’s Position on the Anti-Coercion Tool

[03:47–04:27]

• Stephen asks whether Ireland should oppose the anti-coercion instrument.
• Loewen refrains from stating a position, deferring to the Irish government’s decision, but advocates for dialogue as the preferred approach.
  • Quote: “It’s time for some reflection and dialogue...I think that should be a last resort.” — Michael Loewen [03:53]

5. Attracting Investment in an Uncertain Environment

[04:27–05:40]

• Stephen probes how Loewen engages potential investors amidst such uncertainty.
• Loewen responds that the fundamentals — global markets, innovation, decarbonization, future focus — remain unchanged for international companies.
  • Quote: “The need for them to innovate and bring their R&D pipelines to fruition, that still is in play…Companies are future focused.” — Michael Loewen [04:41]

6. FDI Announcements and Sensitivity to US Political Climate

[05:40–07:20]

• Stephen asks if companies are keeping investments in Ireland quiet due to fear of US political repercussions.
• Loewen confirms that 2025 was a record year for FDI in Ireland, citing a 36% year-on-year increase and strong first-time investments, R&D focus, and workforce upskilling.
  • Quote: “We had a 36% uplift year on year in 2025 across all territories…25% of our investments…were first time investments into Ireland.”— Michael Loewen [06:02]
  • Quote: “Just last Friday, we had an announcement with Qualcomm actually expanding their operations in Ireland.” — Michael Loewen [06:50]
• While companies remain active in terms of investment announcements, they're "very conscious of the world in which we now reside."

7. Outlook for 2026

[07:20–07:55]

• Looking ahead, Loewen predicts continued hyper-competitiveness and challenges.
  • Quote: “The pace of change, the pace of innovation is continuing and we’re going to have to continue to adapt and be agile…” — Michael Loewen [07:24]

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Notable Quotes & Memorable Moments

• “What they look for is they need global markets, they need global presence and global workforce…when you have…potential changes in terms of tariffs, that can be disruptive.”
  — Michael Loewen [00:51]
• “It would actually have an impact in both directions…We need to bring certainty to international trade because it is the lifeblood of all of our economies.”
  — Michael Loewen [02:55]
• “It’s time for some reflection and dialogue...I think that should be a last resort.”
  — Michael Loewen [03:53]
• “The need for them to innovate and bring their R&D pipelines to fruition, that still is in play…Companies are future focused.”
  — Michael Loewen [04:41]
• “We had a 36% uplift year on year in 2025 across all territories…25% of our investments…were first time investments into Ireland.”
  — Michael Loewen [06:02]
• “The pace of change, the pace of innovation is continuing and we’re going to have to continue to adapt and be agile…”
  — Michael Loewen [07:24]

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Important Timestamps

• 00:17 — Introduction to tariff issues at Davos
• 00:51 — Michael Loewen on impact of tariffs on business certainty
• 01:47 — Loewen on corporate resilience amidst uncertainty
• 02:55 — Dangers of EU–US trade retaliation for global economy
• 03:53 — Ireland’s preference for dialogue over retaliation
• 04:41 — Ongoing fundamentals for FDI attraction in Ireland
• 06:02 — Record FDI numbers in Ireland despite global tensions
• 07:24 — Outlook: more competition and need for agility ahead

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Summary Takeaways

• Trade tensions are adding complexity to international business, especially for markets like Ireland that rely heavily on FDI.
• While the geopolitical environment is uncertain, multinational companies remain focused on future growth, innovation, and workforce development.
• Ireland continues to see strong investment, with record growth and major announcements, even as companies remain discreet amid global volatility.
• Dialogue and honoring international agreements are seen as crucial by Loewen and are advocated as better alternatives to trade wars or tariffs.
• The tone throughout is pragmatic, focused on resilience and adaptation, with hope for stabilization via diplomatic engagement.

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Transcript

[Michael McDermott]

At CES. Michael McDermott, EVP of Samsung, spoke with Bloomberg Media Studios about what the company calls its next AI chapter, your companion to AI Living. It's a shift from AI as a feature to AI as a trusted partner in everyday life.

[Stephen]

Bloomberg Audio Studios Podcasts, Radio news well, the latest tariff threats from the US President are casting a shadow over the start of the World Economic Forum in Davos. European leaders are due to meet now later this week to discuss their response, which could include placing limits on market access for American companies. Let's discuss now with Michael Loewen, the CEO of IDA Ireland, the government agency charged with attracting foreign direct investment, who joins us from Davos. Michael, good morning. How worried are you about this latest escalation of tensions between the US And Europe?

[Michael Loewen]

Good morning, Stephen. Yes, I think the last 48 hours have certainly brought another level of uncertainty for global trade and for international companies. Just last week, actually, I was in the US on the west coast and, and it's quite clear from an enterprise perspective, what they look for is they need global markets, they need global presence and global workforce, and that's what they want to do. And of course, when you have maybe some potential changes in terms of tariffs, that can be disruptive. And we've seen that last year, the first half of last year was quite difficult from an FDI flow perspective and obviously decision making became quite delayed during that period. So hopefully we will see some dialogue over the coming days that can maybe bring more clarity and direction in the future.

[Stephen]

In your conversations with those U.S. companies, do you get a sense of frustration that they're unable to plan or make decisions because of the changing policies?

[Michael Loewen]

Well, I think the dynamics has probably shifted from I came out of the US from even on Thursday night to this morning. So last year obviously know that there was delays in the first half of the year in terms of decision making that actually moved. I think companies found paths and again, decisions have to be made in order to support innovation, in order to serve markets. So I think in some ways it's almost a deja vu back to where we were last April. But I do believe that the resilience of the enterprise base will continue to see their path through because we have and I think enterprise have seen the means of which you need to respond in terms of of global investment and global flows. And I think that will continue. It's just that it brings another level of complication and complexity within their business.

[Stephen]

Now we're waiting to see how exactly Europe will choose to respond to this. France wants the EU to consider using the anti coercion instrument, which could include measures like limiting market access for American companies. How damaging could that be for Ireland given the large amount of U.S. investment there?

[Michael Loewen]

I actually think it would be damaging for the global economy, I think beyond Ireland, of course. Certainly it would be an impact in all of our economies across the continent of Europe, because remember, we have European companies serving global markets. We have US companies serving global markets, including the European markets. So it would actually have an impact in both directions. And I think what we're advocating for, and I think that's what most people are advocating for, is for dialogue and to get, I suppose, international negotiations and discussions in respect of setting aside the tariffs. I think we have an agreement in place between Europe and the US in our mind that should be honoured and put into force. And if there's other elements need to be discussed, this should be discussed and clarified. But I think we need to bring certainty to international trade because it is the lifeblood of all of our economies.

[Stephen]

Would you be encouraging the Irish government to vote against using this anti coercion tool?

[Michael Loewen]

Well, I think that's a decision for the Irish government. But I think from an Ireland government perspective, and we've heard the Taoiseach just speak on this over the last number of hours as well, is that, you know, we think it's time for some reflection and dialogue. I would certainly support that. But of course there will have to be decisions made at junctures and at particular junctures. So I think that should be a last resort. I think from a European perspective we should look to dialogue and resolution because as I mentioned, I think it'll be, it would be challenging both for the US economy and indeed for the European economy.

[Stephen]

Michael, you're in Davos to meet with business leaders to talk about foreign investment to promote Ireland as a destination. How do you have conversations like that when the whole environment is so uncertain?

[Michael Loewen]

Yeah, it certainly is a different dynamic, Stephen. I think that's correct. But maybe I go back to the principles. First of all is that when you have international companies, they are serving international markets, so their markets still exist. Their need for their product and their services still exist. The need for them to innovate and bring their R and D pipelines to fruition, that still is in play. And indeed companies are looking to increase their supply chain resilience in terms of decarbonization and sustainability through their supply chain. All of those elements still exist and are required because companies are future focused. They're future focused in terms of growth or future focus in terms of product and services. And that's where we will have our conversations. Yes, we have to be conscious of the overarching geopolitical environment. But ultimately, companies will look to the future and look to actually see how they can continue to trade internationally, how they can have the best products and services and indeed the best workforce globally to support their business needs.

[Stephen]

Are you seeing that companies, though, are having to downplay announcements about foreign direct investment decisions because of the fear of criticism from the Trump administration? You had a record year for attracting foreign direct investment last year. Are companies, though, trying to keep it quiet about some of the investments they're making?

[Michael Loewen]

Well, you're correct. We had a record year last year. And I think if you put that in the backdrop of the year that was 2025, it's an outstanding performance to actually deliver a record year from an FDI perspective. And just to put that in context, we had a 36% uplift year on year in 2025 across all territories. You know, across all territories across the globe. And what really was impactful in that is that maybe I'll just speak to the three areas. First of all, first time investments into Ireland continue to remain strong. So 25% of our investments, or almost 80 investments, were first time investments into Ireland. The second area was innovation in R and D, really strong, 2.5 billion supported last year through the IDA in terms of R and D investments. And the third area was a real focus on transformation, upskilling of the workforce. We supported almost 34,000 people in the Irish workforce to be upskilled last year. So we're seeing companies continue to be that future focus. And just on announcements, just last Friday actually we had an announcement with Qualcomm actually expanding their operations in Ireland. And that's on semiconductor design. So, yes, investments continues, announcements continues. But I think companies are also very conscious of the world in which we now reside.

[Stephen]

How does the year ahead look? Is it going to be a more difficult year?

[Michael Loewen]

I think the year ahead is going to continue to be, you know, hyper competitive. I think it's going to continue to, I think, bring challenges as we go forward. And I think as it started, I think we're going to continue to see that. And I think what we're seeing is that, you know, the pace of change, the pace of innovation is continuing and we're going to have to continue to adapt and be agile because the world has certainly the pace of both from a geopolitical perspective and a technology perspective continues.

[Stephen]

Okay. Michael Lowen, CEO of IDA Ireland. Thank you very much for joining us from Davos this morning.