Surging Exports: Irish Goods Boost Trade with the U.S.

US President Donald Trump recently unveiled his “fair and reciprocal” trade strategy, which could potentially lead to significant import taxes on goods from various nations. In response to these developments, data released by Ireland’s Central Statistics Office (CSO) reveals that the country experienced a substantial surge in its goods exports to the United States last year. Specifically, Irish exports to the US increased by 34% and amounted to €72.6 billion (£60.4 billion). Concurrently, Ireland’s imports from the US declined slightly to €22.5 billion (£18.7 billion), resulting in a goods-trade surplus of over €50 billion (£41.6 billion) with the United States.

These trade dynamics have taken on new political significance since Trump’s return to power, as he has expressed concern about countries that maintain large trade surpluses with the US, viewing them as benefiting unfairly. His recent plan hints at potential tariffs targeting several nations including Canada, Taiwan, India, and referring to the European Union (EU) as “absolutely brutal on trade.” However, Trump has yet to specifically target Ireland among EU member states.

Ireland’s favorable trading relationship with the US is significantly driven by its pharmaceutical industry. The CSO reported that in 2024, exports of medical and pharmaceutical products soared by €22.4 billion or 29% to nearly €100 billion (£83.1 billion), representing a substantial portion—about 45%—of all Irish goods exports.

One key factor contributing to the increase in Irish pharma exports is Eli Lilly’s production facility for its weight loss drug, Zepbound, located in County Cork. US pharmaceutical companies have established bases in Ireland partly due to the country’s low corporation tax rate. Notable analyst Brad Setser from the US Council on Foreign Relations has tracked these activities and highlighted that there is no plausible explanation for high levels of US imports of pharmaceuticals from certain countries like Belgium, Ireland, Switzerland, and Singapore without considering tax avoidance.

Trump’s plan to impose tariffs could potentially impact global trade relationships significantly. Steel tariffs announced by the Trump administration were found to be detrimental not only to the UK but also to the United States itself, according to Chris Reynolds of The Republic of Ireland Global Trade.