Trump's tariff threat on Irish pharma sector puts €44bn exports at 'considerable risk'
President Donald Trump speaks to reporters in the Oval Office at the White House in Washington, Wednesday, March 26, 2025. (Pool via AP)
Irish companies heavily reliant on transatlantic exports are facing significant risk following Donald Trump's latest tariff pledge targeting pharmaceutical imports into the US.
"We're going to be doing tariffs on pharmaceuticals in order to bring our pharmaceutical industry back," Mr Trump said in the Oval Office on Wednesday.
"We don't make anything here in terms of drugs, different types of drugs that you need, medicines, it's in other countries, largely made in China, a lot of it made in Ireland.
"Ireland was very smart, we love Ireland, but we're gonna have that."
Ireland is one of the largest pharmaceutical exporters in the world due to several large US companies operating manufacturing sites across the country.
At the end of 2024, Irish exports to the US rose to €72.6bn, of which €44.4bn were from the pharmaceutical and medical sector.
According to latest figures from the Central Statistics Office (CSO), exports to the US grew by 81% in January this year, with the US being the largest import market for Ireland in the month.
Speaking on Mr Trump's tariff pledge, a spokesperson for the IDA said: "Ireland’s view on tariffs is clear - they are economically counterproductive and would disrupt deeply integrated transatlantic supply chains.
"Tariffs drive inflation, negatively impacting consumers on both sides of the Atlantic. Increased protectionism is in nobody’s interest."
"Secondly, it’s important to realise that while Ireland has a surplus in goods with the US, it has a much larger deficit in services, meaning the overall trade balance is over €100bn in favour of the US. Notably, the proposed US tariffs currently being spoken about only apply to goods."
The spokesperson also noted that Ireland serves as an important location for US multinationals to serve global markets.
"US companies see Ireland as an entry point to the EU and to access wider global markets with 85% of overall exports going to Europe and the rest of the world. Ireland’s proven track record, built over 75 years, as a place to successfully implement complex and scaled FDI projects, is also a critical factor for companies making the decision to invest in Ireland.”
Reacting to Mr Trump's comments, Conor Healy, CEO of Cork Chamber, whose members include several major pharmaceutical companies such as Eli Lilly, Janssen, Pfizer, Abbvie and Thermo Fisher, among others said: "The ongoing uncertainty surrounding international trade, and in particular the prospect of US tariffs on Irish goods, is understandably a source of concern for many in our business community.
"Tariffs pose a considerable risk to some sectors, particularly those heavily reliant on transatlantic exports.
"Foreign direct investment, particularly from the United States, plays an important role in economic strength and employment across Cork City and County," Mr Healy continued.
"It supports thousands of high-value jobs and contributes significantly to local supply chains, innovation and regional development. Safeguarding these ties is of vital importance.
According to analysis by Bloomberg Economics, Ireland is just behind Mexico and Vietnam and on par with Germany in terms of its trade surplus with the US.
The CEO added that it was in "everyone's interest" that the US and Ireland maintain a strong relationship, adding: "Sustaining this will require continued engagement with the US administration at both national and EU levels.
