Trump’s 50% Tariffs on EU Imports Set to Hit Ireland’s Export Economy

Trump’s 50% Tariffs on EU Imports Set to Hit Ireland’s Export Economy

By Aaron Joyce | L.T.T Media | 23 May 2025

Brussels / Dublin — U.S. President Donald Trump has announced sweeping new trade measures targeting the European Union, with 50% tariffs set to take effect on all EU imports from 1 June — a move that has triggered alarm across European capitals and raised serious concerns in Dublin about the potential impact on Ireland’s economy.

The tariffs, described by Trump as a response to “chronic trade abuse” and a €230 billion annual U.S.-EU trade imbalance, are the most severe yet from the White House and mark a sharp escalation in transatlantic tensions.

Irish Sectors in the Firing Line

Ireland, as a committed EU member with a significant export-driven economy, is particularly exposed. Key Irish sectors now facing increased tariffs include:

Pharmaceuticals and Medical Devices – Ireland exports over €50 billion in medical products to the U.S. annually, accounting for a major share of the country's total exports.

Agri-food – Irish dairy, meat, and spirits — notably Irish whiskey — are likely to be caught in the crossfire, with producers warning of severe disruption to U.S. market access.

Technology and Services – While the bulk of Ireland's digital services are taxed differently, hardware and tech component exports could face indirect repercussions through European supply chains.

Ibec: 'A Direct Threat to Irish Jobs'

Irish business leaders have warned the tariffs could pose a “direct threat to thousands of Irish jobs.” Ibec, Ireland’s largest business lobby group, stated that the tariffs undermine decades of trade cooperation and could trigger retaliatory action from Brussels that deepens uncertainty.

“The U.S. is our single largest trading partner outside the EU. These measures will damage businesses on both sides of the Atlantic, especially those in sectors where Ireland plays a global leadership role,” an Ibec spokesperson said.

EU Vows Response as Sterling Rises

European Commission officials have condemned the move, vowing to “defend EU economic interests.” While Ireland remains tied to the EU’s collective response, the UK — no longer part of the bloc — is exempt from the tariffs following a separate trade deal with Washington. That has led to a modest rise in the pound and renewed debate about the flexibility offered by Brexit in trade terms.

Economists in Dublin warn that if the tariffs remain in place long-term, they could shave 0.5–1% off Ireland’s GDP and disrupt investment flows, particularly from U.S. multinationals who have long used Ireland as a base for transatlantic trade.

Political Pressure Mounting in Leinster House

The Taoiseach Micheál Martin is facing calls from opposition leaders to take a stronger stand at EU level and to explore options for a sectoral support package should Irish exporters suffer significant losses.

Speaking on Friday Tánaiste Simon Harris said: “Ireland stands firmly with our EU partners in rejecting these unjustified tariffs. We will work closely with Brussels to protect Irish interests and ensure our exporters receive the support they need in this period of instability.”

With less than ten days until the tariffs are set to take effect, pressure is mounting across Europe — and particularly in Ireland — for diplomatic and economic countermeasures.