Businesses in Ireland are taking a “wait and see” approach to capital investment, amid ongoing uncertainty over US tariffs.

That's according to the Government's Annual Progress Report, which has been published.

It highlights the unpredictability of US trade policy, as President Donald Trump continues to threaten sweeping tariffs.

In the report, the 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.

Alan has been discussing this with the Ennis economist and Assistant Professor of Social Policy at UCD, Micheál Collins..

To discuss this further, Alan Morrissey was joined by Tulla-based Fianna Fáil Minister of state, Timmy Dooley.