Nearly half of all exported Irish goods went to the US in January

By Gráinne Ní Aodha, PA

Nearly half of all Irish goods exported in January went to the US, according to figures published ahead of expected US tariffs imposed on the EU.

There was an 81 per cent increase in the value of Irish exported goods compared with January 2024 (worth €11.7 billion).

The export of medical and pharmaceutical products increased by 68 per cent in January compared with 12 months previous, and represented 61 per cent of total exports that month.

 

There is concern in Ireland that the new US administration’s protectionist approach could pose a risk to an Irish economy which is significantly sustained by long-standing investment from US multinationals, including the US-linked pharmaceutical companies.

US president Donald Trump has both shared his affection for Ireland and the Irish people, and said Dublin is “of course” taking advantage of the US.

He has threatened a 200 per cent tax on imported alcoholic drinks from the EU, which Taoiseach Micheál Martin has said is a “big concern” for the Irish drinks industry.

Figures published by the Central Statistics Office (CSO) on Tuesday indicate that the US was also Ireland’s largest market for imports.

Jane Burmanje, CSO statistician, said: “Exports of goods to the United States were 11.7 billion euro in January 2025, accounting for 48.4% of total good exports, while imports of goods from the US were 2.1 billion euro, representing 19.7% of total imports, making it the largest market for Ireland in this period.”

Minister for Finance Paschal Donohoe said that while the figures were only for one month, “that single month does point to a broader way in which our trade has been structured with the United States”.

He added: “When it comes to goods, there’s a very healthy surplus, when it comes to services there is a deficit, that has meant over the last number of years our overall trade balance has been one of deficit.

“There are a number of other countries in the European Union that also have a deficit.

 

“What we need to do now is work with the United States on the issues they’ve raised.”

Mr Donohoe said they would make the point that tariffs will push prices up, dampen economic growth and increase unemployment in both economies.

He said they also needed to “identify different ways in which we can deal with how trade is structured between the US and EU”.

Mr Donohoe added: “In order to do that we have to negotiate with the US and I hope the next few weeks will allow us to do that.”

Janette Maxwell, a partner in tax at Grant Thornton, said it is still uncertain how Irish businesses will react to the trade uncertainty.

She said: “The numerous shifts in US trade policy have been well publicised over the past few months and it remains to be seen how Irish businesses that trade with the US will react to these constant changes and where they will source imports from going forward.

“It is clear that predictability is in fast decline and Irish businesses must adapt flexible strategies to remain competitive in this ever-changing trade landscape.”