Tánaiste Simon Harris has warned that Ireland’s pharmaceutical exports to the United States could be reduced by approximately 50% if a reciprocal tariff situation develops between the US and EU.
Speaking ahead of today’s Cabinet meeting, Harris acknowledged that a deal to avoid tariffs now appears unlikely as President Donald Trump prepares to announce new trade measures tomorrow.
“As soon as tomorrow, we’re highly likely to see a series of announcements from President Donald Trump in relation to trade and tariffs,” Harris stated, bringing a memo to Cabinet outlining potential economic impacts for Ireland.
The Tánaiste emphasized the need for a measured approach: “It is really important in the days ahead that the response from Ireland and the European Union is calm, measured and strategic.”
Harris highlighted the significant stakes for Ireland, where pharmaceutical and chemical exports to the US total approximately €58 billion annually and the sector employs around 45,000 people. However, he noted that pharmaceutical companies “are not here for the weather” and that about 60% of their exports go to the European Union.
“In theory, over a five-year period, if the EU imposed a tariff of around 20% and the US imposed a tariff around 20%, you could see a very significant reduction up to around half in the amount of pharmaceutical products we’re exporting,” Harris explained.
Taoiseach Micheál Martin echoed these concerns, stating that Ireland and the EU must try to avoid “worst case scenarios” while acknowledging that “even after negotiation, there will be some level of tariffs still in place.”
According to The Irish Examiner, both leaders emphasized the importance of negotiation, with Harris noting that the EU-US trade relationship is worth €1.6 trillion annually. “No president of any political persuasion can ignore that reality,” he said, describing the situation as “one of the biggest economic challenges” that could impact Ireland “for the next generation.”
Martin concluded that the tariff initiative would be “damaging to the entire world economy” and called for mitigation efforts to “limit the damage and avoid worst case scenarios.”