Cork tech firm Kwayga helps suppliers diversify as Trump tariffs disrupt global trade

Cork-based Kwayga helps Irish exporters pivot to Canada, Asia and beyond as US-EU trade tensions escalate

Martin Fitzgerald and Mike McGrath, co-founders of Kwayga. Mr Fitzgerald says that European suppliers are also eyeing up Asian markets — with new and emerging economies in the region offering scope for further expansion and diversification. Picture: John Allen

As export-dependent Irish businesses scramble to keep up with an ever-changing and uncertain global market, Cork supplier-sourcing software developer Kwayga is working with supermarkets and buying teams across Ireland and beyond to navigate supply chains in an increasingly fragmented trade environment.

With US president Donald Trump showing no signs of letting up in his aggressive trade war, food and drinks businesses on this side of the Atlantic are looking to diversify their supply chains and alleviate their reliance on the US market. 

"A lot of businesses are quite cautious right now; they're not happy," says Martin Fitzgerald, the chief operating officer at Kwayga.

"What we are seeing is a lot of engagement with new and emerging markets."

European Union member states are currently weighing approval of a first set of targeted countermeasures on up to $28bn (€25.5bn) of US imports in the coming days. The 27-nation bloc faces 25% import tariffs on steel, aluminium, cars, and "reciprocal" tariffs of 20% from Wednesday for almost all other goods.

"This will have a big impact on us," Mr Fitzgerald told the Irish Examiner. 

But, at the same time, it does offer scope for opportunity in the medium and long term

"Take Brexit for example. Irish and UK companies that dealt with each other at that time quickly learned that they had to diversify — many of whom did, and quite successfully so. 

"We worked with companies that once relied on the UK for 80% of trade but, over time, that fell to 20%. That is because they were able to look beyond to newer markets."

Founded in 2022 by Mr Fitzgerald and Mike McGrath, Kwayga employs 10 full-time staff members and is headquartered in the Marina Commercial Park in Cork City.

Since its establishment, the company has grown its partnerships significantly, now boasting more than 100,000 suppliers across 60 countries.

Uncomfortable adjustment phase

Mr Fitzgerald noted that while food and drink companies will have to go through an uncomfortable adjustment phase as the real impact of tariffs are realised, many could benefit in the medium and long run.

"It goes without saying that there will be short-term pain. We saw it during Brexit and we will, in all likelihood, see it again. But, further down the line, there could be some real benefits to this."

One market that we have been increasingly dealing with is Canada, who are really trying to ramp up their engagement with other regions around the world

"Such damage has been done in recent weeks between Canada and the US, with many Canadian consumers actively choosing against US products when they go to the supermarket. This has made them increasingly interested in Europe."

In addition, Mr Fitzgerald says that European suppliers are also eyeing up Asian markets — with new and emerging economies in the region offering scope for further expansion and diversification.

"This allows for a lot of exciting opportunities," Mr Fitzgerald added, stating that he also expected further activity between Europe and Australia as trade tensions between the US and the rest of the world deepen.

"These markets are well suited for certain Irish sectors, namely, alcohol," the COO said.

Higher-value whiskey and craft beers could really benefit from emerging Asian markets

"These regions have been getting attention for years, and now could be the time for those relationships to develop further."

"While the US is and will remain an important market for many Irish and European suppliers, I think it is important to note that, in a few years, we could have some strong upcoming European winners coming out from this trade war."