Rise in Irish exports surpasses €134.4bn, largely driven by growth in U.S. pharmaceutical sales
In the first half of 2025, Irish pharmaceutical exports to the United States experienced a significant surge due to the bracing of multinational companies in the Republic for the impact of US President Donald Trump's trade policy. According to the Central Statistics Office (CSO), the value of exports of pharmaceutical and medicinal goods climbed by almost three-quarters to €13.7 billion in May compared with a year earlier.
However, this initial surge was followed by a collapse as tariff uncertainty grew. Exports plummeted by 62% in April once companies paused shipments in anticipation of the tariffs. The U.S. administration's threat to impose tariffs up to 200% on pharmaceutical imports has contributed to this volatility, with President Trump indicating that tariffs could be implemented "very soon."
The pharmaceutical sector is crucial to Ireland's economy, contributing significantly to its GDP and corporate tax revenue. Sustained tariffs could lead to a 5% reduction in pharmaceutical output, costing around €110 million annually. This sector accounts for a substantial portion of Irish exports, with pharmaceuticals making up a significant share of total exports.
The surge in exports due to stockpiling and tariff fears has been followed by a re-evaluation of trade strategies. Janette Maxwell, tax partner at Grant Thornton Ireland, has suggested that 2025 may be a year of two halves with an initial spike followed by a potential slump. The impact of tariffs could be profound given the sector's significance in Ireland's economy.
Robert Purdue, head of dealing at global financial services firm Ebury, has stated that the threat of "punitive tariffs" has driven a "rush to accelerate shipments" to the US. However, Maxwell also expressed concern about the new threats of significant tariffs on pharmaceutical products, stating that they will be hugely concerning for the Irish economy.
Despite the White House declining to place tariffs on pharmaceutical imports to the US so far, traders are enduring ongoing instability and unpredictability. This alone risks damage to transatlantic trade relations, notwithstanding any introduction of potential tariffs. Irish traders may seek alternative export markets as US consumers may not pay the inflated prices that would be inevitable should the 30% tariff rate be introduced on Irish goods.
The story was updated on 17 July 2025 to correct the time period for €13.7 billion worth of pharmaceutical and medicinal goods to May 2025. The update did not provide any new information about the overall increase in Irish exports has been primarily driven by a significant increase in exports to the US or about the value of exports of pharmaceutical and medicinal goods in May compared to a year earlier.
[1] Central Statistics Office (CSO) data [2] Statement by President Trump [3] Analysis by Grant Thornton Ireland and Ebury [4] Central Statistics Office (CSO) report on the significance of the pharmaceutical sector in Ireland's economy
- Given the significance of the pharmaceutical sector in Ireland's economy, the threat of potential tariffs on pharmaceutical products is hugely concerning, as suggested by Janette Maxwell, tax partner at Grant Thornton Ireland.
- The surge in pharmaceutical exports to the US, due to stockpiling and tariff fears, was followed by a re-evaluation of trade strategies, with Irish traders potentially seeking alternative export markets if significant tariffs are introduced on Irish goods.
