Ibec: Irish CEOs are increasingly concerned about Donald Trump's threatened tariffs

Having already slapped a 10% tariff on goods from China and 25% on steel and aluminium, Donald Trump is expected to roll out more levies on imports including pharmaceuticals

Ibec executive director of lobbying and influence Fergal O’Brien: 'Recent geopolitical shifts have significantly altered the landscape' for Irish chief executives.

There is a growing concern surrounding international trade and the potential impact of tariffs among Ireland’s chief executives as “recent geopolitical shifts have significantly altered the landscape”, a report by Ibec has found.

This report comes following comments made last week by US president Donald Trump, where he said would likely impose a 25% tariff on cars, semiconductors, and pharmaceuticals. He has already placed tariffs on US imports including a 10% tariff on goods coming from China as well as a 25% tariff on steel and aluminium imports.

The EU Commission has already signalled that it would respond quickly should Mr Trump implement tariffs against the EU.

According to Ibec’s latest survey of chief executives, the top international concern for Irish chief executives was the cost of doing business — cited by 79%, but this was down from 83% last year. The second biggest concern was business regulation and ease of doing business, cited by 54%.

Of those surveyed, 30% cited international trade and risks of tariffs as one of their top three priorities — up 8% compared to last year. Trade and tariffs would be a “major challenge” for 19% of respondents and a “minor challenge” for 41%.

“There is little movement in terms of the major challenges facing firms,” the Ibec report said. “But as political uncertainty abates in Ireland, there is greater recognition of the impact, or potential impact, attached to increased geopolitical risk.”

Ibec executive director of lobbying and influence Fergal O’Brien said the report shows that the overall outlook among chief executives “remains positive” but “recent geopolitical shifts have significantly altered the landscape”.

“This is evident in the sharp rise in concerns over international trade and potential tariffs,” he said. 

Notably, the research was conducted before the most recent US announcement of intent to pursue tariffs, meaning current concerns are likely even higher.

Despite the international picture deteriorating, chief executives in Ireland remained largely optimistic about the broader business environment.

The survey shows that six in 10 firms expect an increase in demand and turnover this year along with growth in both domestic and export sales. However, 88% of chief executives anticipate the cost of doing business will continue to rise throughout 2025.

The top three domestic business priorities identified by those surveyed included the overall cost of doing business, cited by 62%; talent retention, upskilling, and attraction, cited by 51%; and improving productivity, cited by 47%.

Mr O’Brien said despite the international uncertainty, “many of the growth obstacles for CEOs are EU and domestic factors”.

He pointed to how the report by the former European Central Bank president Mario Draghi last year highlighted challenges for Europe including high energy costs, project delays, regulatory burdens, and an incomplete single market. Mr O’Brien said: 

To unlock its full economic potential, the Government must pursue key commitments — such as enhancing competitiveness, accelerating housing and infrastructure projects, and reducing regulatory burdens — with clarity and speed.

Chief executives said housing and the cost of doing businesses should be the top two priorities for the new Government.

Ibec surveyed 213 chief executives as part of the report, with 59% in the services sector and 36% in the manufacturing sector. The remaining 5% were categorised as “other”.