The Prime Minister noted that uncertainty over tariffs creates “difficulties” for budgeting and medium-term financial planning.
US President Donald Trump said he would impose 30 percent tariffs on EU goods from August 1 unless a new trade deal with the bloc is reached by that date.
Mr Trump also warned of a possible increase in tariffs on pharmaceuticals from the end of the month, raising concerns about a key sector of the Irish economy.
Talks between the US and the EU continue as the government prepares to publish its summer economic statement next week.
The government must also provide the EU with an update on its five-year fiscal stability plan.
Speaking to reporters on Wednesday, Mr Martin said: “We are monitoring the situation, but within this year we have a clear idea of where revenues are going and where spending is going.
“However, we certainly expect that in terms of the medium-term framework, the five-year plan that Europe needs to present, this is difficult.
“We can’t cancel the budgeting process, we still have to move forward and prepare a budget, we have to develop estimates and negotiate and so on.
“Given what is happening and the threat of tariffs, there are significant risks of the situation worsening.
“Maybe if we can solve this problem it will have positive consequences, but we will have to wait and see.”
He added: “There are real difficulties in trying to predict the future, but we have capital.
“We really need to transform our infrastructure.
“We must allocate sufficient funds for water, housing and energy.”
Sourse: breakingnews.ie