Davy: Tariff threats will slow Irish economy but not derail it

Irish economy is expected to slow down but it has a 'number of favourable structural advantages'

A report by Davy said that the Irish economy has proven itself very resilient throughout numerous economic shocks over recent years. Picture: Sasko Lazarov/RollingNews.ie

It is unlikely that the new US tariffs will derail the Irish economy as it has proven to be “adept and agile at navigating external shocks” in recent years but a temporary slowdown in growth is expected, a new report by Davy has found.

On Wednesday evening, US president Donald Trump outlined the tariffs he would be implementing on countries around the world with the EU being hit by a 20% tariff. As a small open economy which depends heavily on trade between the EU and the US, Ireland is very exposed to a potential trade war between the two major economies.