Taoiseach says Ireland can retain global competitiveness in pharma despite tariff fears

Taoiseach Micheál Martin with graduates of the New Frontiers programme at Munster Technological University. Picture: Joleen Cronin

Ireland can retain its global competitiveness in pharmaceuticals “over time”, despite current fears US tariffs could threaten the sector, the Taoiseach said.

US tariffs have not yet been slapped on Ireland’s pharmaceutical sector.

Last week, President Donald Trump announced a 20% tariff on imports from the EU, including Ireland, with some limited exceptions, one of which was in pharmaceuticals.

Taoiseach Micheál Martin said he believed there was “a lot to play for yet on the pharma side".

“I spent a lot of time last week engaging with different CEOs of pharmaceutical companies globally,” Mr Martin said. “It’s very, very challenging. The world order is changing in relation to this.

“But there is a lot of engagement between those companies and President Trump and his administration in terms of how this might ultimately end up.

“It is worrying, it is challenging. But I think we have to do everything we possibly can to reduce the impacts of any decisions that will be taken, or shape the ultimate decisions that might be taken by the US administration.” 

The pharmaceutical supply chain is already complex and integrated, and the significant skill sets required to produce everything might not be immediately available in the US, he said.

And huge investment has already been made in pharmaceutical plants and biopharmaceutical plants, not just in Cork but across the country, Mr Martin said.

So it’s not that simple to turn it around or affect a major shift in location. That said, the world is changing somewhat — the world will witness increased demand for medicines and so the cost of medicines is an issue in the US, in Europe.

Mr Martin believes Ireland can retain its competitiveness in the sector, but it will take “a lot of effort and engagement with the companies and between Europe and the US". 

The Taoiseach made the comments after attending the graduation of Enterprise Ireland’s New Frontiers programme for young entrepreneurs at Munster Technological University on Monday.

The ceremony is “very apt given the turbulence of the world in terms of trade, economy, tariffs and so forth”, he said.

The event showcased “some tremendous new businesses, new ideas, and that is the key to Ireland's future,” he said.

“We have to really double down on nurturing and supporting entrepreneurship and connecting education, research, new ideas and new businesses together,” Mr Martin said.

“And that's what MTU is doing here at the Rubicon Centre with Enterprise Ireland and the local enterprise offices.

“The more and more entrepreneurs that we create, the better for the future of our society and economy."