Trump tariffs deeper and broader than expected

Financial markets have sold off overnight as US President Donald Trump unveiled broader and more aggressive tariffs. Remarkably, China now faces additional tariffs exceeding 50%, with a 20% rate on Irish and EU exports imposed. However, a key development for Ireland is that pharmaceuticals are excluded. This means that 80-90% of Irish exports to the United States will not be affected, so the first round negative impact of tariffs onto GDP will be negligible, albeit very difficult for some sectors. Looking forward, much will depend on whether EU/US negotiations can bear fruit. Here, the risk the EU’s retaliatory response could include measures targeting US ‘big-tech’ firms poses another risk for Ireland’s important ICT sector.

Read the weekly in full here:

Bank of Ireland Economics Weekly 3rd April 2025

Watch Chief Economist Conall Mac Coille discuss the Trump, tariffs and Ireland at the link here:

What do Trump’s Tariffs mean for the Irish economy and financial markets