Tánaiste Simon Harris has warned that while the country is in a healthy economic space there are dark clouds on the horizon.
He was speaking as he arrived at the National Economic Dialogue in Dublin Castle and highlighted the fact that there are 23 days until a pause on increased US tariffs ends.
Asked if he was confident of a trade deal being agreed, Mr Harris said he was encouraged by a recent conversation he had with US Trade Representative Jamieson Greer.
"Anybody who speaks with any certainty these days would be misplaced but I was encouraged by the conversation that I had with Ambassador Greer. He made it very clear to me that he felt it was moving to the substantive phase of negotiations between the United States and the European Union," Mr Harris said.
In his speech to the conference, Mr Harris said the threat of further tariffs represents "the most serious challenge to transatlantic economic relations in generations".
The National Economic Dialogue is an annual event that brings together various stakeholders for consultation and discussion on the upcoming Budget.
It is being attended by trade unions, business groups, charities and environmental organisations.
The Taoiseach Micheál Martin said that uncertainty over US tariffs is challenging when it comes to designing the upcoming Budget.
Speaking to reporters at Dublin Castle, Mr Martin said the Government is hoping for a negotiated outcome, adding that Europe is working very hard with its counterparts in the United States to get a deal before the July deadline.
"Obviously, any impact of tariffs will not be just in the context of this year's Budget, but also in terms of the medium term, and obviously we would have to reflect that in any decisions we would have to take [in] this Budget.
"But there's no doubt that the tariff situation does create a different context leading into this Budget and future budgets, until it's resolved and until certainty can be restored, then it will be challenging in terms of designing a new Budget, and indeed, future medium fiscal framework," Mr Martin said.
Asked if changes to the children's allowance to help tackle child poverty might be announced in the Budget, the Taoiseach said nothing is off the table.
"We will be examining all aspects of that," Mr Martin said.
"I've already spoken to the Department of Social Protection directly on this but nothing's off the table, there's a wide menu there that we can choose from to target resources to meaningfully impact on the child poverty situation," he added.
Minister for Finance Paschal Donohoe was asked if the current global uncertainty would impact promised tax cuts in the Budget.
"We made it very clear in the General Election that choices have to be made in how we use the country's money," Mr Donohoe said.
"I am confident that if we are in a position of stability within our public finances in the time ahead, that the commitments that we have laid out in the Programme for Government, that we can deliver them," Mr Donohoe said.
"But I think I know that our first priority coming up to this Budget is to look at how we can support jobs, invest in infrastructure and keep our public finances safe," he added.
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The event was addressed by Taoiseach Micheál Martin, the Tánaiste, Minister for Finance Paschal Donohoe, Minister for Public Expenditure Jack Chambers and other members of the Cabinet.
Mr Martin opened the conference and in his address reiterated the need to accelerate delivery in housing, infrastructure, health, energy, water and public services.
In his speech, Mr Donohoe told delegates that the near-term economic outlook is clouded in uncertainty and that positive headline economic figures so far this year mask considerable vulnerabilities.
"Much of the headline balance arises from a handful of large multinationals and, as I mentioned, the mood-music is changing. It is not appropriate - indeed it could be dangerous - to plan on the basis of these receipts being permanent," Mr Donohoe said.
In his address, Minister Chambers emphasised the need for the transformation of infrastructure delivery, through the National Development Plan and the reform of delivery systems, to enhance Ireland's economic competitiveness.
The theme of this year's National Economic Dialogue is 'medium-term budgetary planning against a rapidly changing global backdrop'.
The conference is not intended to produce specific budget proposals or recommendations but rather to assist participants in preparing their own pre-budget submissions.
Ahead of the event, the Irish Congress of Trade Unions (ICTU) warned that Ireland's economic model is unsustainable and urged the Government to use Budget 2026 to put the economy on a firmer footing.
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ICTU General Secretary Owen Reidy said the country has been left dangerously exposed to global shocks.
"In this era of uncertainty, Government needs to end its reliance on the sugar rush of corporation tax windfalls, and start serious planning for the longer term," Mr Reidy said.
"We have an over-reliance on a handful of firms for corporation tax, significant wage inequality, and major infrastructure deficits across housing, healthcare and transport," he added.
Speaking ahead of the event, Social Justice Ireland said the country's overall level of taxation will have to rise significantly in the years to come to address current service and infrastructure deficits, and meet the changing needs of a growing and ageing population
"Work must begin now on planning for a sustainable tax-take and wise investment of available funds into infrastructure and services to embed resilience," said John McGeady, CEO, Social Justice Ireland.
Climate campaigners will urge the Government not to waste billions of euro on the bill the country currently faces for missing climate pollution targets.
"It would be far better for the Government to invest now in helping people have warmer homes with lower energy bills, clean power and cleaner air, and much more public transport from local link to Metrolink," said Oisín Coghlan, spokesperson for the Environmental Pillar delegation at the dialogue.
