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DONALD TRUMP HAS PLEDGED to introduce future tariffs on pharmaceutical imports, in an effort to bring drug manufacturing to the US.
Singling out Ireland while discussing the proposed tariffs, Trump said that the tariffs would “bring pharmaceuticals back” to the US, adding that “we don’t make anything here”.
If introduced, these tariffs could disrupt Ireland’s €72 billion in pharmaceutical exports, drive up costs and potentially force multinational companies to reconsider their operations in the country.
🚨 Donald Trump singles out Ireland as he promises future tariffs on pharmaceutical imports, in an effort to bring drug manufacturing back to the U.S.
— Gavan Reilly (@gavreilly) March 27, 2025
Ireland was “very smart” attracting that sector, he says.
Trump was speaking as he announced 25% tariffs on all imported cars pic.twitter.com/zzpTHenjYr
“It’s in other countries, largely made in China, and a lot of it made in Ireland – Ireland was very smart, we love Ireland,” Trump added.
Trump made the claims as he announced a 25% tariff on all imported cars and light trucks to the US.
The US President said the tariffs will take effect on 2 April, the same date that he is set to impose on EU goods and a date he has described as “liberation day”.
Describing the tariff as “very modest”, Trump said the measure could lead to “tremendous growth” for the US car industry.
He said his administration would “charge countries for doing business in our country and taking our jobs, taking our wealth”.
In a statement, European Commission President Ursula von der Leyen pledged to protect European workers affected by the tariffs, saying: “I deeply regret the US decision to impose tariffs on EU automotive exports.
“The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic,” she said.
“As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union”.
The US President’s claims of enforcing tariffs on the Irish pharmaceutical industry seem to back up a report published today that found that the risks to the Irish economy of US tariffs are “extremely high” due to potential fallout from a looming international trade war.
The report, conducted by the Economic and Social Research Institute (ESRI), analysed the consequences of US tariffs on Irish economic growth into next year.
It warns of increases in unemployment, inflation and net decreases in exports and imports which could arise from a tit-for-tat tariff war between the EU and US.
“Some of our really big export sectors are extremely reliant on the US,” research professor at the ESRI Conor O’Toole said. “This is a potentially big impact on the Irish economy for changes in these particular trading relationships.”
Tariffs – taxes placed on imported goods – are designed to encourage companies within a country to source their materials domestically as opposed to from abroad.
When implemented by a government, tariffs make products more expensive for consumers due to the company having to make back money lost on the increased cost of imported materials.
Donald Trump has proposed starting trade wars with Canada, Mexico, China and the EU after threatening a slew of tariffs of up to 25% on goods from those countries for various reasons ranging from vengeance to his protectionist America First policy.
Donald Trump has warned that “significant” tariffs on EU goods will begin next week, with Finance Minister Paschal Donohoe warning this week that 80,000 Irish jobs could be on the line if the tariffs materialise.
The EU has vowed to respond with retaliatory tariffs on €18 billion worth of US goods which will come into effect in mid-April.
In addition to a decline in imports and exports, increased unemployment numbers and a reduction in spending power are anticipated in 2026 if Trump follows through with tariffs, according to today’s ESRI report.
Unveiling its findings, ESRI Research Professor Conor O’Toole says the Irish economy entered 2025 in “robust condition” owing to unemployment below 4% and a 2% inflation rate, but tariff-related uncertainty lies ahead.
“The downside risks to the current forecasts are extremely high, and the outlook that we’re putting forward today really is clouded by this international trade situation,” he said.
A key question will be whether the Trump administration targets Ireland’s pharmaceutical exports, which would cause significant damage to Ireland’s economy. Around 44% of Ireland’s pharmaceutical exports go to the States, valued at a record €224 billion last year.
Many of these goods are manufactured by US pharmaceutical companies paying tax here – a situation that the current US government has vociferously opposed.
The ESRI report includes a forecast of a drop in exports of two percentage points less than if tariffs were not introduced, and a dip in imports next year of 3.5 percentage points.
Kieran McQuinn from ESRI warns of an increase in unemployment in Ireland if US tariffs of 25% on EU goods kick in.
The current unemployment rate stands at 3.9%, the lowest level achieved since 2001.
However, should tariffs be introduced, an average unemployment rate of 4.3% is predicted for the whole 2025, gradually increasing to 4.6% for next year, according to estimations made in the ESRI report.
“Clearly the tariff issue will have an impact, particularly in the traded sectors, industry and ICT sectors,” McQuinn said.
“If there is a profound impact, it would clearly have an impact on unemployment. We do have unemployment gently ticking up just over the next year, and that’s really under the baseline due to the deterioration in the trans trading conditions that we are witnessing at present.”
Additional reporting by Andrew Walsh
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