Irish Businesses Predict Multibillion-Euro Loss in Trade Under Trump TariffsBy The Independent Business DeskLondon, Friday, April 4, 2025
Irish businesses are bracing for a multibillion-euro hit following US President Donald Trump’s imposition of sweeping new tariffs on European Union exports. The controversial move, announced during a high-profile address at the White House, sees a 20% tariff slapped on most EU goods entering the United States – with Ireland’s export-heavy economy expected to be among the hardest hit.
According to a preliminary assessment by Irish business lobby group Ibec, the new measures could cost the Irish economy between €4 billion and €6 billion in lost trade in the short term. Ibec noted that roughly 25% of Ireland’s current American exports would fall under the new tariffs, including products from key sectors such as food and drink, chemicals, machinery, and manufacturing.
“This marks the beginning of a significant shift in Ireland’s trade environment, not the end,” an Ibec spokesperson said. “While companies are unlikely to act hastily in the face of such uncertainty, Government support and strategic negotiation are urgently required to limit the damage.”
Irish Taoiseach Micheál Martin expressed deep regret over the US decision, warning it could push the global economy towards recession. Speaking in Dublin on Thursday, Mr Martin challenged the American justification for the tariffs, saying the figures cited “do not reflect the reality of the situation as we see it.”
“We are dealing with a very serious disruption,” Mr Martin said. “There’s no justification for these tariffs, and they could have wide-reaching consequences for investment and employment across Ireland and Europe.”
Public Expenditure Minister Jack Chambers went even further, likening the scope of the tariffs to those seen during the Great Depression. “The last time we saw this scale of protectionism was in the 1930s. We know how that ended,” he said grimly.
The Trump administration has justified the move as a ‘reciprocal’ step, claiming EU nations have imposed an effective 39% tariff barrier against American goods. Mr Trump argued that charging Europe half that figure, at 20%, was “very kind.” Ireland was not mentioned specifically in the speech, but the scale of the tariffs applies uniformly to most EU member states.
The baseline 10% tariff takes effect from April 5, with the full 20% rate set to apply from April 9. Pharmaceuticals – a major export for Ireland – remain exempt for now. However, there are growing concerns that even that sector may come under scrutiny in the coming weeks.
“We believe the exemption for pharma is more about complexity than compassion,” Mr Martin said. “They may not yet fully grasp the implications of penalising that sector.”
Irish EU Commissioner Michael McGrath warned that 70% of all EU exports to the US could be impacted by the full scope of Trump’s tariffs, representing nearly €380 billion in goods and adding some €80 billion in extra duties.
“The EU stands ready to negotiate but is equally preparing for robust counter-measures if diplomacy fails,” Mr McGrath said. “We must protect our businesses and our interests.”
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Meanwhile, US Commerce Secretary Howard Lutnick told CNN the tariffs were non-negotiable unless “countries change everything about themselves,” citing VAT rates and regulatory barriers as key grievances.
In response, Deputy Prime Minister Simon Harris urged maturity and cool heads: “There’s a window for negotiation. Trump’s announcement was the performance – now we need the substance. The EU must not stand idly by, but we don’t seek a tit-for-tat war. Talks are the way forward.”
Ibec has called on the Irish Government to roll out immediate support measures for affected businesses, including funding for workforce protection, export diversification, and productivity-enhancing investments.
With tensions escalating and the global business community on edge, the next 48 hours could prove decisive in determining whether this trade spat hardens into full-scale economic conflict – or becomes the opening chapter in a broader negotiation.
