Ireland's trade surplus with the United States soared to impressive heights, largely driven by the pharmaceutical industry's robust presence. In 2025, Irish goods exports to the US surged by 34% to reach €72.6 billion, while imports from the US fell to €22.5 billion. This significant trade surplus has sparked discussions in political circles, especially following Donald Trump's return to the presidency, as he scrutinizes countries with substantial trade surpluses with the US.
Pharmaceutical manufacturers are at the heart of this trade success. Many US-based pharmaceutical companies have established a strong foothold in Ireland, drawn by the country's favorable low corporation tax rate. These manufacturers export a significant portion of their Irish output to the US, contributing to the surplus. Notably, Eli Lilly produces its weight loss drug, Zepbound, at a facility in County Cork, highlighting Ireland's role as a key player in the pharmaceutical supply chain.
In 2023, Trump stated that pharmaceutical products constituted 45% of all Irish goods exports. His administration's "fair and reciprocal" trade plan aims to address trade imbalances by potentially imposing large tariffs on goods from countries like Ireland. Trump has previously criticized several nations, including Canada, Taiwan, India, and described the EU as "absolutely brutal on trade."
Ireland's exports of medical and pharmaceutical products overall rose by €22.4 billion or 29% to just under €100 billion in 2024, according to the Central Statistics Office (CSO). This growth underscores the increasing demand for Ireland's pharmaceutical exports, which contributed to a goods-trade surplus with the US of just over €50 billion in 2024.
Brad Setser, a researcher at the US Council on Foreign Relations, has been closely monitoring the activities of pharmaceutical companies. His research sheds light on how these companies leverage Ireland's economic environment to bolster their global distribution networks.
The political landscape also plays a significant role in trade dynamics. Trade policy within the EU is an "exclusive competence," meaning only the EU can negotiate trade deals and impose tariffs. This limits individual EU member states like Ireland from engaging in direct trade negotiations with countries such as the US.