The European Commission expect pharmaceuticals to be next on Donald Trump’s hit list, that’s despite the Taoiseach’s hopes that the sector will dodge US tariffs.
The pharma industry has grown into a huge industry for Ireland.
Ireland’s pharma exports to the United States last year were worth €44 billion, up from €25 billion in 2023, according to data from the Central Statistics Office.
Exports in January this year more than doubled January 2024, suggesting the industry may have started stockpiling fearful that tariffs were coming.
When Taoiseach Micheál Martin met President Trump last month, the US President took aim at Ireland’s pharma industry.
“This beautiful island of Ireland of five million people has got the entire US pharmaceutical industry in its grips”, Trump complained.
Last night, when Trump announced a 20 percent tariff on all EU goods it looked bad for the sector.
But the US government documents that followed his announcement revealed that pharmaceuticals were excluded.
The Taoiseach thinks that might be a sign that the US is hesitating.
Imposing punitive tariffs would “actually increase medicine prices in the United States, which I’m sure the U.S. administration does not want to do”, said Micheál Martin.
“Ireland is part of a complex integrated supply chain. Basically, we manufacture quite a range of goods that are exported to the European Union, to Asia, and, yes, to the United States…Pharmaceutical goods exported to the U.S. are very often intermediate products that are essential for the finishing of products and the completion of products in the U.S.”
But a senior EU official strongly suspects pharmaceuticals are next in Trump’s sights.
“We are indeed preparing for protecting and for promoting and supporting our [pharmaceuticals] sector, not knowing exactly what the US will do in terms of measures”, he said.
Another EU official said that whereas other EU goods have been hit with a 20 percent tariff, he expects pharma, like steel and aluminium – industries closest to Trump’s heart – to be slapped with a 25 percent tariff.
The Taoiseach said it would be a huge mistake for the US.
“The investment levels embedded in physical infrastructure in Ireland is very, very significant, not easily relocatable, overnight.” High-skilled jobs could not be quickly magicked up by the US overnight either.
“There’s a real danger of undermining your own companies US companies”, the Taoiseach warned.
The EU plans to keep negotiating with the US to try and get Trump to think again about tariffs. if that doesn’t work, the European Commission is preparing more rounds of counter measures.
“We do fear and suspect that pharmaceuticals is next”, the senior EU official said.