Ireland’s Exports to the US Surge, But Could Tariffs Be Coming?

Ireland’s trade with the United States hit new highs in 2024, with exports soaring 34% to $78 billion. At the same time, imports from the US dropped slightly to $24 billion, leaving Ireland with a massive $54 billion trade surplus.

This boom is largely driven by Ireland’s pharmaceutical industry, with major global companies producing medicine in Ireland and shipping it to the US. However, the timing of this record-breaking trade comes just as the US government considers new tariffs on countries with big trade surpluses.

Could the US Target Irish Exports?

The US, now under its newly re-elected president, has made reducing its $1.3 trillion trade deficit a top priority. The government has already announced a plan to impose tariffs on several countries, including Canada, Taiwan, and India, as well as the European Union as a whole.

So far, Ireland has not been specifically mentioned, but its strong trade surplus with the US could put it on the radar. A major concern is the pharmaceutical sector, where American companies manufacture drugs in Ireland to take advantage of lower taxes before shipping them back to the US. Some US policymakers argue that this setup takes revenue away from the US economy.

With a 10% tariff already in place on Chinese goods, the US is now working on customized tariffs for each trade partner, which could be introduced in the coming months. If Ireland is included, its booming exports could face serious challenges.

A Strong European Market Too

Beyond its US trade, Ireland also saw strong export growth with the European Union, selling $6 billion worth of goods to EU countries in December 2024 alone. The biggest buyers were the Netherlands, Germany, and France.

The pharmaceutical industry remains Ireland’s strongest export sector, bringing in $108 billion last year and accounting for nearly half of all goods sold abroad.

What’s Next?

For now, Ireland’s growing trade surplus with the US is a sign of economic strength, but it also raises concerns about potential tariffs. If the US moves forward with broad trade restrictions, Ireland’s exports—especially in pharmaceuticals—could take a hit.

With businesses and government officials closely watching US policy decisions, Ireland must prepare for possible changes in trade rules while continuing to grow its role as a global business hub.