Irish Exports to the US Soar by 34%
US President Donald Trump unveiled his “fair and reciprocal” trade initiative last week. Interestingly, following this announcement, Ireland’s goods exports to the United States surged by 34% in 2024 to 72.6bn (60.4bn), while its imports from the US dropped slightly to 22.5bn (18.7bn). Consequently, Ireland posted a significant trade surplus of over 50bn (41.6bn) with the US, as reported by data from Ireland’s Central Statistics Office (CSO).
These trade dynamics have become increasingly politicized since Trump regained power. The president views countries with substantial trade surpluses negatively and has hinted at implementing tariffs on goods from several nations including Canada, Taiwan, and India. He also characterized the EU as being “absolutely brutal” in its approach to trade.
Despite this rhetoric, so far there is no indication that Trump intends to single out Ireland among other EU countries for punitive actions under his new trade plan.
Ireland’s goods surplus with the US can largely be attributed to its strong presence of pharmaceutical manufacturers. These companies export a significant portion of their products from Ireland to the United States. According to CSO data, in 2024, exports of medical and pharmaceutical products surged by 2bn or 31% to nearly 97bn (80bn). Such items accounted for approximately half of all Irish goods exported.
One contributing factor behind this increase in pharmaceutical exports is the production facility for Eli Lillys weight loss drug Zepbound located in County Cork, Ireland. US pharmaceutical companies often choose Ireland due to its low corporate tax rate.
The researcher Brad Setser from the US Council on Foreign Relations has been tracking such activities closely. In testimony before the US Congress Finance Committee in 2023, he stated that there is no plausible explanation for the substantial scale of American imports of pharmaceuticals from Ireland and other countries like Belgium, Switzerland, and Singapore without it being linked to tax avoidance.
Trump’s latest trade policy move could potentially have broader implications beyond just targeted tariffs. It remains to be seen how these actions will affect global markets, particularly those involving major trading powers like the EU.
