Up to 70,000 fewer jobs will be created in the Irish economy over the next five years as a result of US tariffs, the Department of Finance has warned business groups.

At a meeting of the Government’s trade forum on Friday, department officials gave their preliminary analysis of what impact the new 15 per cent tariff on EU exports into the US would have on the Irish economy.

They warned it would reduce economic activity here by roughly 1.5 per cent over a five-year timeline against a baseline of no tariffs while reducing employment growth by 2 per cent, which equates to 56,000-70,000 fewer jobs being created.

Officials cautioned that much of the detail in the deal brokered this week between Brussels and Washington, including possible carve outs for certain sectors, had yet to be ironed out and therefore their forecasts might change.

Stock markets fell again on Friday after Donald Trump announced a slew of fresh tariffs, boosting the average US rate on goods from across the world.

The US president’s latest order set tariff rates, ranging from 10 to 41 per cent, for 67 countries, including a 39 per cent rate for Switzerland, the fourth highest globally and described by Switzerland as the “worst-case scenario”.

The baseline rates for many trading partners remain unchanged at 10 per cent from the duties Mr Trump imposed in April, easing the worst fears of investors after the president had previously said they could double.

The European Union has agreed a 15 per cent tariff on exports to the US which will begin on August 7th.

There is still a lack of clarity about the rate that will apply to pharma and semiconductors, which comprise the bulk of Irish goods exports to the US and which are subject to special section 232 investigations, which assess the impact of imports on US national security.

However, the European Commission has confirmed that any resulting section 232 tariffs will be capped at 15 per cent.

Speaking after the Government’s trade forum meeting, Ibec’s Danny McCoy said he hoped “we might be entering into a period of stability” following the EU-US deal.

While acknowledging that a maximum tariff of 15 per cent would have a significant impact on many businesses, he said the deal provided “some clarity”, which was helpful.

Mr McCoy highlighted the tariff differential between Northern Ireland and the Republic (10 per cent versus 15 per cent) as a potential concern, noting that both sides needed to work together “not to negate the North’s advantage” but to ensure it operates correctly.

[ As new regime kicks in, what does it mean for Europe and for IrelandOpens in new window ]

Chambers Ireland chief executive Ian Talbot said the Government needed to focus on geography as well as sectors.

“Our successful clustering model could result in certain parts of the country being disproportionately exposed to one or two sectors,” he said.

[ Why did the EU sign a tariff deal overwhelmingly favourable to the US Opens in new window ]

“And there remains the question about whether the US may move the goalposts again in the coming months or years,” Mr Talbot said.

He said the forum also discussed the importance of opening up new markets with opportunities in Canada, Mercosur and India discussed.