Irish exports fall by a third in aftermath of 'Liberation Day' tariff measures

Drop in pharmaceutical exports has been slightly offset by a surge in exports office machines and automatic data processing machines

US President Donald Trump announcing tariffs in April 2025 which led to widespread stockpiling by Irish exporters

Irish exports dropped by almost a third in May as ongoing geopolitical uncertainty and last year's unique export surge to the US added to trade volatility.

Figures released by the Central Statistics Office (CSO) on Wednesday show Irish exports of goods fell by €6.8bn in May compared to the same month last year, reflecting a drop of over 29%.

On a monthly basis, exports fell by 7.6% in May to €16.9bn, with Ireland's top export partners that month being the US, the Netherlands and Great Britain. 

Exports to the US equated to almost 29% of total exports in the month, with €4.7bn worth of goods being sent across the Atlantic in May. That is despite exports to the US falling by 56% on an annual basis.

Goods sent to Great Britain, however, increased significantly, growing by over 26% in May compared to the same period in 2025 amid greater diversification by Irish companies to offset US trade volatility. 

Meanwhile, exports of medical and pharmaceutical products fell by €8bn in May compared to the same month last year, reflecting a fall of almost 59%. Despite this, exports of these goods still represented more than a third of total exports in the month. 

Surge in data processing machine exports

Partly offsetting the fall in pharma goods, the CSO recorded a 177% rise in exports of office machines and automatic data processing machines, increasing by €1.2bn in the year to €1.8bn. Exports of petrol and related products also surged, rising to 125% in the year to €47.5m in May.

"The scale of the decline appears striking, but it needs to be read against the backdrop of the exceptional export surge Ireland recorded in early-to-mid 2025, when Irish traders front-loaded goods, particularly pharmaceuticals, to the US ahead of the then-anticipated tariff regime," said Janette Maxwell, international indirect tax partner at Grant Thornton Ireland.

Partly offsetting the fall in pharma goods, the CSO recorded a 177% rise in exports of office machines and automatic data processing machines

"What we are now seeing is, in large part, the normalisation of trade flows after that spike."

Meanwhile, Irish imports rose significantly in May by almost 18% to €13.1bn, narrowing Ireland's trade surplus by €1.2bn.

"A softer surplus, driven by weaker exports rather than stronger domestic demand, is a signal that Ireland's heavy reliance on a small number of high-value sectors and export markets remains a structural vulnerability," said Ms Maxwell. 

While rising exports to Great Britain have helped offset more volatile trading conditions in the US, Robert Purdue, head of client portfolio management at Ebury Ireland has warned that exporters are not off the hook yet.

"Renewed tensions in Iran, despite recent signs of a potential resolution, have already pushed up oil prices and could put further pressure on energy costs, input prices and global shipping routes.

“While we expect the European Central Bank to take a very cautious approach on interest rate hikes, the Eurozone remains highly exposed to oil-inflation risks. Much will depend on how geopolitical developments unfold in the months ahead, with businesses needing to prepare for potentially tighter financing conditions and continued uncertainty."