Several medium-sized Irish drinks firms are contemplating withdrawing “hundreds of thousands” worth of planned US investment following President Donald Trump’s imposition of 15% tariffs on EU and Irish goods, with some companies already scaling back hiring plans for American sales representatives.
The Irish Whiskey Association reports multiple small to medium enterprises are reassessing their US operations and exploring alternative markets as the tariffs threaten profit margins and market competitiveness.
“We are hearing from multiple SMEs who have made significant investments in the US market who are now considering pulling staff and changing their plans,” said Eoin Ó Catháin, IWA Director. “Bigger companies are more able to shoulder the costs, but eventually the tariffs are going to have a wide and varied impact.”
Belfast Distillery CEO John Kelly confirmed his company is redirecting investment toward other markets including Japan, Korea, and South Africa. The distillery, which produces approximately 500,000 litres annually with the US as its largest market, expects to raise American prices by around 10% to offset tariff costs.
“We can’t take on the hit to our margins from these tariffs, so we have to pass some of that on to our US retailers, and they will have to pass that on to the consumer,” Kelly explained.
The tariffs, part of Trump’s broader economic strategy targeting most US trading partners, particularly affect Irish food and drink exports. A US appeals court recently ruled the “reciprocal” tariffs illegal, but they remain in place until October 14th pending a Supreme Court appeal widely expected to favor Trump.
The broader economic implications extend beyond spirits, according to Seamus Coffey, chair of the Irish Advisory Fiscal Council. He warned of potential corporation tax revenue losses as US multinational subsidiaries in Ireland may adjust internal pricing to minimize tariff exposure.
Coffey identified Ireland as uniquely vulnerable, with 27% of goods exports destined for the US – nearly three times the exposure of the next most affected EU country. The aircraft leasing sector faces particular risk, as US-based Irish leasing companies may relocate if secondary aircraft sales become unviable.
“People in various offices are burning the midnight oil on this, it’s quite understood that there’s a potential fiscal shock coming through this,” Coffey said, describing the situation as a source of “big worry” within government circles.