How Irish industry has reacted to the tariffs announcement

Businesses try to make sense of Donal Trump's attempts to redraw the global economy

'We must recognise that the USA has fundamentally changed its economic relationship with the rest of the world.' Picture Dan Linehan

The 20% tariff on European imports into the US is set to have a profound impact on the Irish economy. Business leaders here reacted swiftly to the announcement by US President Donald Trump.

IBEC

Danny McCoy, CEO of business group IBEC said they expect the new US tariffs will have a net overall export impact of around 2%–3% in the short-term but said the Government must advocate for a proportionate and measured EU response.

"To protect the economy and jobs we can draw on what worked in the covid and Brexit measures," he said. " The most important domestic response is to support enterprises most affected by the tariffs. This should include time-bound short-time working supports to help keep employees connected to businesses experiencing demand shocks, as well as other measures to enhance productivity and access to new markets."

CHAMBERS IRELAND

CEO of Chambers Ireland Ian Talbot said it was essential that Ireland and the EU respond with "calm and resolve."

He said empowering businesses to sell goods and provide services in other markets remains critical to mitigating the impact of tariffs. "We need to utilise the advantages of the Single Market and our access to the UK market while continuing to diversify into new international markets," he said.

CORK CHAMBER

Conor Healy, Cork Chamber CEO, said the level of exposure will vary across sectors and businesses, from large multinationals to SMEs. "In the short term, continued support for SMEs is essential as they adapt, by ensuring the resourcing of our state agencies and trade sections of our diplomatic corps which will need to play an enhanced role in supporting diversified market access.”

IRISH EXPORTERS ASSOCIATION

Simon McKeever, CEO of the Irish Exporters Association, said: "We must recognise that the USA has fundamentally changed its economic relationship with the rest of the world and acknowledge that the landscape of global trade has essentially shifted, and the reality of long-lasting tariffs is here to stay. The tariff gap between the UK and EU further complicates the situation particularly in the case of Northern Ireland. 

AIB

David McNamara, AIB's Chief Economist, said: "It remains unclear how the increased costs will distribute between US consumers and Irish-based producers, depending on the elasticity of demand and currency movements. The imposition of tariffs is an anchor on global trade and will likely be a drag on manufacturing output and GDP growth in Ireland, and to a lesser extent on the labour market and domestic demand."