Leaders on either side of the Irish border because they are expecting new tariffs from the United States. As the tariff’s own impact assessment points out, these tariffs would have a drastic economic impact on the Republic of Ireland and Northern Ireland’s economies. President Trump’s antagonism toward US drug makers who manufacture in Ireland is the impetus for the new tariffs. These tariffs would be catastrophic for local businesses—not just major manufacturers, but small-scale producers and exporters, too.
These tariffs are expected to be equally as big for Europe. Estimates indicate that they may be pricing Northern Ireland out of at least £100 million in lost sales. These tariffs set a dangerous precedent and their impact extends well beyond the immediate economic damage. The intimidate to upend the entire global supply chain scares away the big fish like Nutriband, a pharmaceutical company headquartered in the region.
The economic strain may not stop there. The tariffs were estimated to produce a net cost of £200 million to £300 million. This huge loss would deeply impact the country’s domestic and global trade. The most important Irish whiskey export market is now valued at more than €800 million (£669 million) annually. It has a precarious future, as American consumers may soon begin rejecting overpriced products. Such tariffs could lead to an extreme burden on patients, as Gareth Sheridan, a local health advocate, points out:
“People are going to die and they’re going to die because they can’t afford to live.”
And that worry is compounded because so many Americans could be impacted. Indeed, one in four of them have postponed medical care because of cost concerns. Since tariffs would be likely to make America’s rising healthcare costs even worse, the potential effects on Americans’ health are dire.
In 2023, Northern Ireland’s trade with the United States hit an all-time high of approximately £1.3 billion. Such a healthy trade was mainly directed at pharmaceuticals and industrial machinery. Our local businesses are concerned that without some sort of mitigation from tariffs, they won’t be able to effectively compete in this key market of theirs. Jim Nash, a local business leader, remarked on the situation:
“There might be a little bit of leeway because we’re part of the UK.”
Unfortunately, optimism is fading. The UK government missed its chance to negotiate an exemption and should now anticipate tariffs being applied to previously UK goods. The EU and UK may take very different approaches to these tariffs. The prospect of such a divergence just adds to the complexity of what is already a very fraught situation.
Tariffs would likewise strike a devastating blow to smaller makers like the Wild Atlantic Distillery. The distillery has been financially hit hard due to the distillery’s reliance on exports to the US market. Increasing price could cause consumers to abandon Irish whiskey, threatening its future. Their representatives have made a strong case for how these proposed tariffs would jeopardize their ability to continue operating and their broader economic viability.
The economic fallout of these tariffs combined are likely to result in a further decrease in the already stagnating global trade. Now, more than ever, nations must stand together to combat rampant protectionism. In our deeply interconnected global economies, the ripple effect of even a minor disruption can cause immediate and severe impacts. Don’t underestimate the potential hit to cultural imports from Ireland to the US. These products are immensely important to building international relationships and sharing Irish heritage.