US-Ireland trade deficit at record on pre-tariff pharma imports

Deficit more than doubled in March

Many of the largest US drug companies, including Eli Lilly and Pfizer, have outsourced much of their manufacturing to Ireland, lured by the country’s favourable tax environment. Picture Dan Linehan

The US merchandise-trade deficit with Ireland soared to a record in March on a massive inflow of pharmaceuticals and medicines, likely a preemptive move by drug companies to front-run expected tariffs.

The shortfall with Ireland more than doubled to a seasonally adjusted $29.3bn (€25.9bn) — larger than the US’s $24.8bn (€21.9bn) goods deficit with China. It was also wider than two other major US trade partners, Canada and Mexico. Overall, the value of imports from Ireland was twice the total brought in a month earlier.