Gauging Ireland’s exposure to Trump tariffs
The probability of US tariffs being imposed on a broad range of EU exports in the near future has increased. President Donald Trump has implemented 10% tariffs on China, reiterated threats to impose tariffs on the EU and announced 25% tariffs on all US imports of steel and aluminium. European Commission President Ursula von der Leyen has said the EU will respond with ‘firm and proportionate countermeasures’. In 2023, the United States accounted for €107bn,or 18% of Irish exports, the bulk of which were services €53bn, or pharmaceuticals €40bn. Ireland’s export sector normally outperforms more cyclical European countries with heavy manufacturing sectors in periods when global trade is under pressure. This defensive character should again provide some protection for Ireland should tariffs be imposed. Put simply, American consumers will likely bear the cost of any tariffs imposed on pharmaceuticals. However, one risk is that the ICT sector could become the focus of escalating trade tensions.
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