Irish businesses are already experiencing order cancellations and job threats following the implementation of US tariffs on European Union goods, Taoiseach Micheál Martin told the Dáil on Wednesday.
The tariffs, announced by US President Donald Trump last week, have triggered days of market uncertainty and are now having tangible effects on Irish exporters. “We are already hearing from some who are seeing their orders from the US slowing or even drying up entirely, putting valuable and skilled jobs at risk,” Martin said.
The Taoiseach expressed particular concern about potential further tariffs targeting pharmaceuticals and semiconductors, sectors currently excluded from what Trump has termed “reciprocal tariffs.” Ireland’s pharmaceutical industry, which Trump targeted overnight, is especially vulnerable due to its complex production processes and supply chains.
“I have spoken to many leaders in the pharmaceutical sector in recent days to discuss how best we can navigate these very serious challenges,” Martin said. “I know how concerned they are – it is not a sector in which production can be turned on and off overnight.”
According to The Irish Examiner, the pharmaceutical industry represents a significant portion of Ireland’s export economy, with Martin noting it involves “exceptional expertise, long-term research and innovation, very significant investment in high-tech plants, a skilled and dedicated workforce” and ultimately impacts patients who could face higher prices or supply disruptions.
While Ireland supports the EU’s response of implementing tariffs on approximately €22 billion worth of trade, Martin emphasized that the goal remains de-escalation: “I hope that, having reflected, the US will step back from disrupting this most sensitive sector. I am sure that we can find a negotiated solution in which everyone wins.”
Finance Minister Paschal Donohoe provided further insight into the potential economic impact, citing joint analysis by his department and the Economic and Social Research Institute. The research suggests Ireland’s Modified Domestic Demand could fall 1-2% below baseline projections over the medium term, with employment levels potentially 55,000 to 85,000 lower than anticipated without tariffs.
Donohoe outlined that Ireland’s response will focus on enhancing competitiveness and infrastructure investment to create and attract more jobs as the tariff situation tests “the resilience of the Irish economy.”