What Ireland Needs to Know Before the US Tariffs Deadline

The 9th July US tariffs deadline is almost here. As the date gets closer, pressure is building on Ireland’s economy. In this MFCU Money Matters blog, we explain what this could mean for Irish businesses. 
 

Irish SMEs are worried about the impact 

Many still believe Ireland will escape the effects of these US tariffs. However, it is time to look at the facts. InterTradeIreland’s latest All-Island Business Monitor shows that three in ten SMEs are concerned about political and trade uncertainty. This reflects the growing tariff impact businesses are worried about. The SMEs said that profitability remains strong, but 21% suggest that the uncertainty has affected consumer sentiment. 

Why Ireland Is Uniquely Exposed Ahead of the US Tariffs Deadline? 

Ireland faces a unique challenge because of its close trade ties with the US. As we explained in our earlier blog, How the US tariffs could impact the Irish Economy, Ireland holds the largest trade deficit with the US in Europe. This is mainly due to pharmaceutical exports, which play a significant role in our economy. 

For now, pharmaceutical exports are not on the tariff list. That is a relief. However, this exemption could change. The sector is so important that any tariff could have serious consequences. Dr Jeromie Ballreich, from Johns Hopkins University, explained to The Independent that if insulin from Ireland faced a 50% tariff, patients in Mississippi would pay more. Indirect costs would rise either through higher prices or increased insurance premiums. 

How Future Tariffs Could Slow Down Ireland’s Growth? 

Even though US consumers would face 12.9% higher drug costs, this would not only affect the US but also hurt our economy. Ireland is home to around 90 pharmaceutical companies employing about 50,000 people, according to RTÉ.  While no job losses are expected right now, there is concern about long-term investment and future growth. 

Ireland Must Diversify 

All of this shows the need for Irish businesses to explore new markets. Relying too much on the US is risky. Tánaiste Simon Harris summed it up during the National Economic Dialogue by saying, “Ireland is facing the most serious transatlantic trade challenge in a generation. We must remain calm but competitive.” 

Ireland is facing the most serious transatlantic trade challenge in a generation.

We must remain calm but competitive.

Speaking at the National Economic Dialogue, I called for this year's Budget to focus on housing and the enterprise economy. pic.twitter.com/DQcsLRbHsi

— Simon Harris TD (@SimonHarrisTD) June 16, 2025

Time Is Running Out Before the US Tariffs Deadline 

The clock is ticking towards the US tariffs deadline on 9th July. Ireland and the EU continue to negotiate with the US in hopes of reaching a deal. Without one, we may face more uncertainty and further pressure on economic growth. 

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