Ireland’s key export industries face significant challenges as new US tariffs take effect, with the dairy and alcohol sectors positioned to bear the heaviest impact.
However, industry leaders are responding with cautious optimism, exploring alternative markets to mitigate potential losses.
Dairy Sector Braces for Impact
Bill O’Keeffe, Farm Business Chair of the Irish Farmers’ Association (IFA), highlighted the disproportionate effect on Ireland’s dairy exports, with 15% of production destined for the US market. The iconic Kerrygold butter brand – one of America’s top-selling butter products – faces particular vulnerability.
“The 20% tariff on Irish dairy compared to just 10% for UK and New Zealand competitors creates an uneven playing field,” O’Keeffe explained.
He noted the sector’s struggles, compounded by potential ripple effects from possible EU counter-tariffs on US-sourced animal feed like soya bean and corn gluten.
Sean Molloy, CEO of Tirlán, confirmed the Kilkenny-based dairy cooperative’s significant exposure to US markets through brands like Kerrygold. Despite this, Molloy emphasized the industry’s resilience: “We’ve weathered storms before, including the Brexit disruption when we diversified into Asian and Middle Eastern markets.”
Whiskey Industry Faces Competitive Squeeze
The Irish whiskey sector anticipates similar challenges, with UK competitors benefiting from lower tariff rates. Pat Rigney, founder of The Shed Distillery (producers of Drumshanbo Gunpowder Irish Gin), revealed that the US accounts for 35% of their sales.
“While price competitiveness is a concern, we’re focusing on brand value and consumer relationships,” Rigney stated.
His brand has risen to become the fourth-largest premium gin in the US market through strategic positioning.
Other distillers are pursuing market diversification strategies. Michael Scully of Clonakilty Distillery is redirecting focus to Asia and Northern Europe, capitalizing on existing strong sales in Japan and South Korea. Scully remains confident in Irish whiskey’s appeal:
“The Irish diaspora in the US represents a loyal consumer base unlikely to abandon their preferences due to price increases.”
Emerging Brands Spot Opportunities
Some newer market entrants see potential in the disruption. Alice Carroll, co-founder of Foxes Bow Irish Whiskey, described the tariff certainty as preferable to previous speculation about potential 200% duties.
“The reduced competition from established brands creates openings for smaller players,” Carroll explained from Texas, where her company is targeting younger, less price-sensitive consumers. She also identified Canada as a growing alternative market following the withdrawal of some American products.
Industry Outlook: Adaptation and Resilience
As negotiations between the EU and US continue, Irish exporters face a period of uncertainty. Many are drawing parallels to the Brexit adjustment period, when companies successfully pivoted to new markets.
Tirlán’s Molloy summarized the prevailing sentiment: “This situation mirrors our Brexit experience.
We’ll assess where new opportunities emerge while maintaining our quality standards that have built strong international demand.”
With the global dairy market showing stability and Irish whiskey maintaining its premium reputation, industry leaders express measured confidence in their ability to navigate the tariff landscape through strategic market diversification and brand strength.
— Reported by M10News
