Safeguarding jobs must be prioritised following introduction of tariffs, Cork Chamber CEO says
US President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)
Ireland’s crucial pharmaceutical sector appears to have largely avoided a new US tariff rate for now, amid a broader 20% tax imposed on other goods from the European Union.
But the industry, which s for a large portion of Irish exports, may be subjected to harsh tariffs at a later date as the White House seeks to increase domestic production.
On Wednesday, US president Donald Trump announced a minimum baseline tariff of 10% on all imports from all countries, with additional higher rates for some regions – including a 20% tax on goods from Ireland and the rest of the EU.
The 10% rate is effective from April 5 while the “individualised reciprocal higher” rates will be implemented from April 9.
Cork Chamber has expressed concern over the US istration's announcement of a 20% tariff on all EU imports.
Chamber President Rob Horgan said that the announcement by US President Donald Trump is “very significant for our national and regional economy".
“We must use our position within Europe and the global trade agreements already in place to our advantage while moving forward with new trade agreements, this will be essential to ensure continued and new access to key international markets. A measured and coordinated EU response will be critical in managing these developments, and Ireland must continue to actively engage in this process to safeguard our economic interests.”
Meanwhile, Cork Chamber CEO Conor Healy said the "level of exposure will vary across sectors and businesses, from large multinationals to SMEs".
"Measures to mitigate the impact and safeguard jobs must be prioritised. In the short term, continued for SMEs is essential as they adapt, by ensuring the resourcing of our state agencies and trade sections of our diplomatic corps which will need to play an enhanced role in ing diversified market access.
“Tariffs are not a constructive tool for economic progress. Now more than ever, we need dialogue and diplomacy, and a unified European response that works to de-escalate trade tensions and protect economic stability. Our business community is resilient, but a coordinated and calm response is needed to navigate these challenges and ensure long-term economic stability," Mr Healy added.
Further information published by the White House after Mr Trump’s address suggests some goods – including pharmaceuticals and semiconductors – “will not be subject to the reciprocal tariff”.
Mr Trump has previously threatened tariffs on these sectors and may yet make further orders.
There had been significant anxiety in Ireland in the run-up to Wednesday’s announcement, with the US istration’s protectionist approach to tariffs and tax posing a major risk to the Irish economy that is in large part sustained by long-standing investment by US multinationals.
The potential impact on the pharmaceutical sector, which employs around 45,000 people, was a particular cause of concern.
Total Irish exports were valued at €223.8 billion last year, with roughly one third going to the US.
Of the €72.6 billion in US imports from Ireland, approximately 58 billion euro relates to pharmaceuticals and chemicals leaving Ireland.
It had been projected this could halve if Mr Trump had implemented a 20% tariff on the goods and the EU had responded in kind.
The immediate suggestion that pharmaceuticals are not currently part of the new tariff measures comes despite both Mr Trump and his Commerce Secretary Howard Lutnick previously focusing on Ireland’s moves to attract that sector.
The US istration could still implement higher tariffs on pharmaceuticals at a later date, with the White House warning that future good-specific or sector-specific taxes may be announced. The industry will also have to examine the specifics of the lengthy and technical list of exemptions.
Taoiseach Micheál Martin travelled to Washington DC last month, where the US president told him he did not want “to do anything to hurt Ireland” but added that the trade relationship between the countries should be focused on “fairness”.
During Wednesday’s announcement, Mr Trump said his istration was being “very kind” by implementing tariffs for most trading partners that were essentially half the rate of measures it had calculated was imposed on the US.
Ireland was not specifically mentioned in the address, but Mr Trump emphasised his response to the EU.
He said: “They rip us off, it is so sad to see – it is so pathetic.
“They charge us 39%, we’re going to charge 20% – so we’re charging them essentially half.” The comments means that the US istration considers that a “full reciprocal” tariff rate for the EU would be 39%.
On Wednesday, Mr Martin said there was “no justification” for the imposition of the tariffs.
He said the Irish Government will “now reflect with” EU partners on how best to proceed.
He added: “Any action should be proportionate, aimed at defending the interests of our businesses, workers and citizens.
“Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests.” Mr Martin said the Government was prioritising protecting jobs and the economy.
“By working with Irish-owned companies, multinationals, our EU partners and bilaterally with the US, we can and will weather this storm.”
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