Ireland Braces for Economic Fallout from Potential US-EU Trade Tariffs

Studies predict significant GDP shrinkage, job losses, and sectoral impacts as Ireland works diplomatically to avert a trade war.

Ireland's economy could shrink by up to 3.7% over the next five to seven years under a worst-case scenario involving 25% tariffs between the US and EU.
A 10% tariff scenario would still lead to a 3.2% drop in GDP and a 1.7% decline in Modified Domestic Demand (MDD) compared to a no-tariff baseline.
Key sectors like pharmaceuticals, IT, and medical devices face heightened risks due to Ireland's reliance on US multinationals for jobs, exports, and tax revenues.
Protectionist policies could prompt US-based companies to relocate operations, further jeopardizing Ireland's public finances and economic stability.
The Irish government is actively engaging with EU and US counterparts to prevent tariffs while preparing for the potential economic disruptions they could cause.