BBC News NI economics and business editor, John Campbell, reported that the potential imposition of tariffs at a rate of 20% on Northern Ireland goods entering the US could have detrimental effects on local businesses, amounting to at least a loss of £100m in sales. As US President Donald Trump is set to announce a new round of tariffs, the UK government has been engaged in negotiations to secure an exemption for UK goods, however, it is now expected that tariffs will be levied on UK products.
Northern Ireland exported goods valued at approximately £1.3bn to the US in 2023, with a particular focus on pharmaceuticals and industrial machinery. Tariffs, which essentially function as taxes on imports from foreign nations, are implemented by governments in an effort to safeguard local industries from global competition.
According to Ulster University economist Esmond Birnie, the impact of a 20% tariff could result in a direct and narrow financial setback of £100m in reduced sales. Furthermore, the secondary and tertiary effects, such as an overall decline in global trade, could escalate the total negative impact to a range of £200m – £300m. Stuart Anderson of the NI Chamber of Commerce emphasized the significance of the US market and urged the UK government to provide a clear response following Wednesday’s announcement, especially given the potential complications that could arise if the EU and UK respond divergently.
The repercussions of US tariffs could be even more profound on the Republic of Ireland’s economy, as highlighted by BBC News. With Ireland being the most dependent EU country on the US as an export market, accounting for nearly a third of total exports in 2024 at a value of €73bn (£61bn), the threat of tariffs poses a significant risk. President Trump’s expressed concerns about the extent of manufacturing by US pharmaceutical companies in Ireland adds another layer of uncertainty. Irish Prime Minister, Micheál Martin, revealed that investors in Ireland are adopting a cautious approach while awaiting developments on the tariffs issue, emphasizing the need for a strategic and careful response from the EU to minimize further complications
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