US President Donald Trump is expected to impose sweeping new import tariffs on Ireland and other global partners, potentially escalating a trade war, raising prices and upending the long-standing global order.
Mr Trump is likely to focus on European Union countries, including Ireland, with tariffs of about 20 per cent. Tariffs are taxes placed on goods imported from foreign countries.
Ireland is among the countries vulnerable to the changes to the global economy proposed by President Trump, as a significant share of employment, tax revenues and exports directly depend on the activities of American multinational companies.
The chart below shows all of Ireland's trading partners in 2024, ranked by trade value, with the US well ahead of other countries.
Last year, the US accounted for €73 billion of Irish goods exports, up €19 billion from 2023.
In 2024, EU countries received over €88 billion worth of Irish goods, €7 billion more than in 2023.
Of this amount, 20 billion euros were sent to Germany, 23 billion euros to the Netherlands and 17 billion euros to Belgium.
An analysis carried out in collaboration with the Department of Finance and think tank ESRI has found that tariffs on US goods could cost the Irish economy more than €18 billion in lost trade.
The document also noted that a protracted trade war between the EU and the US could pose a threat to public finances.
There are growing concerns that any tariffs announced by President Trump could also negatively impact the pharmaceutical sector, which has traditionally been exempt from import duties.
Medical and pharmaceutical products accounted for 45 percent of Irish merchandise exports in 2024, with a value approaching €100 billion. Much of this output is produced by US pharmaceutical giants based in Ireland.
World Trump's tariffs will be negative worldwide, with… Read more
The country's pharmaceutical companies employ around 45,000 people, and last year Ireland exported pharmaceutical and chemical products worth around €58 billion to the US.
Ten of the world's largest drugmakers, including US companies Johnson & Johnson, Pfizer and Merck, have major operations in Ireland.
Prime Minister Micheal Martin said the tariff threat was the “most serious challenge” facing the Irish economy, adding that the scale of the impact would be significant.
Sourse: breakingnews.ie
