Photo by Tiger Lily
Ireland’s goods exports experienced a significant drop in April, reflecting the disruptive impact of tariffs imposed by US President Donald Trump as part of his “America First” trade strategy.
Businesses had accelerated shipments to the United States in the first quarter of the year to get ahead of the newly implemented tariffs, which took effect in April. This frontloading of exports led to record sales in March, followed by a marked decline the following month.
Export values reached €43 billion (£37 billion) in March, a new monthly record. However, by April, export figures had dropped to €25 billion (£22 billion), underscoring the volatility caused by changes to trade policy.
Shipments to the US saw the most severe drop, plummeting 62% from March to April. Exports to the US fell from nearly €26 billion (£22 billion) to just under €10 billion (£8.5 billion), illustrating the extent of the decline once the tariffs came into force.
Despite the steep month-to-month decline, export figures in April were still higher than those recorded in the same month of the previous year, both in terms of total exports and US-bound goods.
The newly imposed tariffs function as taxes on imports, central to President Trump’s economic agenda aimed at boosting domestic production and reducing trade deficits. In April, the administration introduced a baseline 10% tariff on most imports from nearly all trading partners and proposed further “reciprocal” tariffs—20% on European Union goods among them.
Though these additional tariffs were announced, the US later opted to suspend them temporarily, offering a 90-day window for negotiations with affected trade partners.
The United States remains Ireland’s most important export destination, particularly for high-value sectors like pharmaceuticals. While pharmaceuticals have not yet been targeted by Trump’s tariffs, there have been growing threats to extend the duties to this industry under national security considerations.
As it stands, most Irish goods, especially those in the pharmaceutical sector, remain exempt from US tariffs. However, the uncertainty has already affected trade flows and prompted exporters to change their behavior in anticipation of further restrictions.
These dramatic month-to-month fluctuations in exports are also having a visible impact on Ireland’s broader economic performance.
The export surge in the first quarter helped push Irish GDP up by nearly 10%, reflecting the outsized role multinational corporations play in the country’s economy. However, an alternative metric, Modified Domestic Demand (MDD)—which attempts to strip out the distortions caused by multinational activity—recorded much more modest quarterly growth of just 0.8%.
This divergence highlights how trade statistics influenced by multinational operations can distort the apparent strength of domestic economic activity.
As negotiations over tariffs continue, Irish exporters remain watchful for developments in Washington, particularly regarding potential levies on pharmaceuticals. The outcome will likely play a crucial role in determining the trajectory of Ireland’s trade performance in the months ahead.
