Focus on drug giants as Trump plans 20% tax

Ireland could attract fewer manufacturing investments in future years from US pharmaceutical giants, according to a leading analyst, as President Donald Trump unveiled a plan to cut the tax levied on US companies to 20%.

The proposed lowering of the US profit tax rate to 20% from 35% — less than the originally mooted reduction to 15% — should have little effect on many of the investments made by US technology giants in Ireland because firms such as Google and the social media giants need to have operations and staff based in Europe, said Owen Callan at Investec Ireland.

Mr Trump had long focused on luring manufacturing jobs back to the US, but any reforms face considerable hurdles over the high cost of implementing the tax overhaul.