US companies to remain 'real source' of foreign investment in Ireland despite tariffs, says IDA

Michael Lohan, CEO of IDA Ireland.

The US will remain a key source of foreign direct investment for Ireland, CEO of the IDA Michael Lohan has said, with the agency continuing its mission to attract US firms despite the added challenges that tariffs will bring to investment. 

Speaking on US President Donald Trump's sweeping tariffs of 20% on EU imports, Mr Lohan told reporters: "It goes without saying this this will be very counterproductive for innovation and trade flow."

In 2024, Ireland's goods exports to the US were totalled €73bn, according to the Central Statistics Office (CSO), of which 80% was in the pharmaceuticals sector. Ireland accounts for about a fifth of total US pharma imports.

Out of the IDA's 1,800 client companies, around 60% come from the US, with 30% from Europe and the remaining 10% originating from Asia, with investment flows into Ireland largely matching that portfolio, the IDA said. 

Asked if the agency will continue to encourage US companies to set up in Ireland, Mr Lohan told the Irish Examiner: "We do have a lot of diversity in place. But I do continue to see the US as a real source of FDI in Ireland.

"We continue to have those discussions, those discussions are happening today about continued investment across the US. We also have multiple sectors as well, so we have the benefit of having both diversity in terms of source market but also having diversity in terms of the sectors that we attract."

The IDA chief executive added that it would continue its trade missions in the US, which he said are ongoing everyday.

"I was there only a couple of weeks ago myself. Part of my business is ensuring and marketing new investment, as well as establishing relationships with existing clients. We will continue to do that. We also have a series of trade missions planned out for the year ahead."

Speaking this morning on Ireland's exposure to tariffs, AIB chief economist David McNamara warned that they  would be a drag on Irish manufacturing output and gross domestic product (GDP) growth, with fears that punitive trade measures will also hurt the labour market and domestic demand.

However, Mr Lohan remains confident that US firms will be attracted to Ireland, telling reporters: "Somewhere between 30% and 40% of decisions were delayed in the first quarter of 2024. 

"That doesn't mean that they will not happen. Ultimately, we will se a movement of those because companies have to invest.

"I believe that now that there is a pathway set in terms of what tariffs will look like, investors in companies can now make decisions on where to place those investments. 

"I am confident that Ireland will be a benefactor of that."