Finance Minister Paschal Donohoe has expressed deep concern over potential US tariffs on pharmaceutical exports, cautioning that they could severely harm Ireland’s economy.
Speaking on RTÉ’s Prime Time, Donohoe stated that the government is bracing for “real and significant” challenges if President Donald Trump proceeds with plans to impose tariffs on drug imports, including those from Ireland.
“I want to emphasize the magnitude of the potential disruption and the serious economic consequences we may face,” the minister said. While acknowledging the risk of significant disruption, he expressed confidence in Ireland’s ability to respond effectively.
“We will rise to this challenge collectively, though I won’t downplay the difficulties ahead. This will require focused effort, and that’s where our work begins,” he added.
The warning follows Trump’s recent announcement that the US plans to introduce tariffs on pharmaceuticals, explicitly naming Ireland as a major producer. On Wednesday, Trump argued that the tariffs aim to bring drug manufacturing back to the US, claiming, “We don’t make anything here anymore.”
“I’m extremely concerned…”
— RTÉ Prime Time (@RTE_PrimeTime) March 27, 2025
Minister for Finance @Paschald warns that US tariff threats pose “significant and real difficulties” for Ireland’s economy — but says, “collectively, we will be able to rise to the test ahead.”
WATCH:@rtenews | #rtept pic.twitter.com/B4zHgXU0if
Prior to Trump’s remarks, Donohoe had already cautioned that 50,000 to 80,000 Irish jobs could be at risk, with GDP potentially shrinking by 2–4% in a worst-case scenario.
Ireland exported a record €72.6 billion in goods to the US last year—a 33% increase from the previous year—with pharmaceuticals making up a substantial portion.
Given Ireland’s heavy reliance on pharmaceutical exports, Donohoe stressed that the country would feel the effects more acutely than most. “This is a serious economic challenge for Ireland—one that will impact households and businesses,” he said.
“While it’s regrettable to face another major hurdle after the last decade’s challenges, this is the reality we must confront.
The government will work closely with the sector and the broader economy to mitigate the effects as much as possible,” he added.
Despite the looming threat, Donohoe highlighted Ireland’s strong economic position, citing a budget surplus and record employment levels.
“We have 2.8 million people in work and robust public finances. These strengths will help us navigate what lies ahead,” he said.
Pharmaceutical Industry Braces for “Challenging Times” Amid Tariff Threats
Oliver O’Connor, CEO of the Irish Pharmaceutical Healthcare Association (IPHA), warned that tariffs on medicines would be damaging for both the industry and global healthcare. Speaking on RTÉ’s Drivetime, he described the situation as “very challenging” for EU-based pharmaceutical firms exporting to the US.
“These are difficult times for companies and policymakers alike, particularly in managing transatlantic trade relations,” O’Connor said.
He argued that retaliatory tariffs would only increase drug costs worldwide and disrupt production efficiency.
“For the past 30 years, pharmaceuticals have been exempt from tariffs under WTO agreements for this very reason,” he noted.
O’Connor called for an “open, balanced, and economically efficient trade relationship” and emphasized Ireland’s critical role in global supply chains. “The industry here is a key asset—it won’t be easily replaced,” he said.
Trump’s Criticism of Ireland’s Pharma Sector
This is not the first time Trump has singled out Ireland regarding pharmaceuticals. During a meeting with Taoiseach Micheál Martin earlier this month, he accused Ireland of “taking” US pharmaceutical companies through favorable tax policies.
“Suddenly, Ireland—a small island of five million—has the entire US pharmaceutical industry in its grasp,” Trump said. “We don’t want to harm Ireland, but we demand fairness.”
Last week, US Commerce Secretary Howard Lutnick labeled Ireland his favorite “tax scam” in remarks on the All-In podcast. He claimed Ireland holds much of the US pharmaceutical and tech intellectual property, putting America at a disadvantage.
Trump’s latest comments came as he threatened higher tariffs on the EU and Canada if they “collaborate to harm the US economically.”
He also announced a 25% tariff on imported vehicles, escalating global trade tensions and drawing threats of retaliation from affected nations.
