Finance minister warns Cork would be hit hard by Trump's proposed 200% pharma tariffs

Paschal Donohoe said the US pharma review is important 'particularly for Cork because of the excellence it has shown in supporting manufacturers of medicines and drugs'

Finance minister Paschal Donohoe: 'The reason those supply chains are present in Ireland is because of the decades of experience and expertise that have been built up here.' File picture: Brian Lawless/PA

Finance minister Pascal Donohoe warned that Cork will be particularly impacted by tariffs on pharmaceuticals following threats by US president Donald Trump of levies totalling 200% on the pharma sector.

Donald Trump told a US cabinet meeting this week that tariffs on the industry would be imposed “very soon” and would be implemented at a “very high” rate, which he said would help push major drug makers to reposition their operations in favour of the US.

Speaking in Fermoy on Thursday, Mr Donohoe said the ongoing tariff developments regarding the pharma sector were “very serious” for both Ireland and the wider EU.

He added: “The [US] president’s administration currently has a report under way in relation to the [pharmaceutical] sector. 

"That process is very important, particularly for Cork because of the excellence it has shown in supporting manufacturers of medicines and drugs over many, many decades.

The case we are making for the EU and, indeed, to America, is that if you want very innovative drugs available at affordable prices, having global supply chains can play a part in that.

“The reason those supply chains are present in Ireland is because of the decades of experience and expertise that have been built up here. 

"If you want those drugs available across the world, there is a case for them to be also made in different parts of the world.”

Mr Donohoe said he could not comment on whether a figure of 200% was realistic, but said a tariff of any kind for the sector would stunt growth.

Pharma's key role in Ireland

Ireland’s pharmaceutical industry supports about 70,000 jobs and, along with the tech sector, helps underpin the exchequer’s mammoth corporate tax receipts, which have grown significantly in recent years.

It is also the most significant sector regarding Irish trade with the US, with some 40% of exports from the Irish pharma sector being sent across the Atlantic.

Mr Donohoe said the Government is engaging directly with the medical and life sciences sector, adding that the issue would have a major impact on future predictions for the Irish economy.

He said: “It’s a particularly important issue in terms of forecasting our economy for 2026 and for the backdrop of our next budget. It does not help the creation and keeping of jobs. This is the broad argument that the EU and Ireland have been making to the US for some time.”

“What we are focused on here in Ireland is how we can support this sector and make the case for it within the EU and to America, and that is what we are doing.”

Irish exporters are currently grappling with heightened uncertainty, compounded by a strong euro putting downward pressure on demand for European goods. The US dollar has been on a steep slide throughout 2025, tumbling by roughly 13% against the euro.

Mr Donohoe added: “I know many of our larger manufacturers do put arrangements in place to help them cope with exchange rate fluctuations.

"What the Government is looking at now is how we can make the case for the life science sector here, and how we can support those jobs and investments that we’ve had for many decades now.”