Irish pharmaceuticals and semiconductors avoid US tariffs for now

Ireland recently received positive news regarding its pharmaceutical and semiconductor exports, which have been exempted from newly announced tariffs by the United States. On April 2, 2025, US President Donald Trump officially announced the new tariffs during a speech at the White House, which was closely monitored by stakeholders back in Ireland. In a subsequent fact sheet released by the White House, it was clarified that the new Reciprocal Tariffs would not apply to these particular sectors, alleviating immediate concerns about their viability in the US market. Economic specialists noted that while this exemption eases short-term pressure, it remains uncertain whether future regulations might still impact these industries. Danny McCoy from Ibec stated that the tariffs could lead to a 2-3% reduction in overall Irish exports, highlighting the broader implications for various sectors. Moreover, concerns were raised regarding the EU's response to these tariffs, as President Ursula Von der Leyen emphasized the desire for resolution through negotiation rather than further conflict. She pointed out that the EU is prepared with countermeasures, particularly for the steel and automotive sectors, but also indicated that discussions with the pharmaceutical sector will be forthcoming. The ongoing situation sparks a dialogue regarding international trade relations and the potential for retaliation by the EU, demonstrating the delicate balance of safeguarding Irish exports in a shifting global marketplace.