Tensions are mounting in Dublin as Ireland faces the looming threat of punitive tariffs from the United States under a potential second Trump administration. During a St Patrick’s Day visit to the Oval Office, Irish Tánaiste Micheál Martin was met with sharp criticism from Donald Trump, who accused Ireland of “taking our pharmaceutical companies away.” The warning has since developed into a broader concern over trade fairness, as Trump floats the idea of sector-specific tariffs on the global pharmaceutical industry—of which Ireland is a major player.
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Ireland’s pharmaceutical sector, employing around 50,000 people and exporting goods worth over €200bn annually, is particularly vulnerable. Exports to the US account for 40% of that figure. The Irish government has responded with caution, cutting its growth forecasts and preparing for a scenario in which up to 25,000 jobs may be lost. Finance Minister Paschal Donohoe has expressed concern about the potential “far-reaching” consequences of economic decoupling from the US, warning it could destabilise a key pillar of Ireland’s economic model.
While the pharma industry remains publicly subdued, behind closed doors there is growing anxiety. The Irish Pharmaceutical Healthcare Association acknowledged that any tariffs—whether incoming or outgoing—could compel companies to reconsider their manufacturing footprint in the EU. Already, a rush to front-load exports has been observed, with a staggering 211% rise in pharmaceutical exports to the US in February compared with the same month in 2024. Yet, with 60% of Irish exports made up of services—currently untouched by tariffs—some sectors remain buffered for now.
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Nonetheless, uncertainty is taking its toll. Experts warn that hesitation among multinational firms to reinvest or expand in Ireland could severely dent long-term growth. Tax receipts from tech and pharma giants, crucial to public finances, may decline drastically if operations are relocated. Though the government has established reserve funds to absorb future shocks, economists say more must be done. As one industry figure put it, “We’re not doomed. But we need to act—urgently.”
