DUBLIN (Reuters) – Ireland faces potential challenges in the wake of proposed shifts in the global economy by U.S. President Donald Trump. The country’s employment, tax revenues, and exports are heavily reliant on a group of U.S. multinational companies.
EMPLOYMENT
Ireland’s workforce relies significantly on U.S.-based foreign multinationals, particularly in the technology and pharmaceutical sectors. These companies employ around 11% of Irish workers, a result of successive Irish governments prioritizing their jobs and contributions to tax revenues. Additionally, Ireland’s accountancy and legal industries play a crucial role in supporting these U.S. firms, further bolstering the economy.
TRADE DEFICIT
In 2024, Ireland recorded a goods trade surplus of 50 billion euros with the United States, driven by a notable increase in drug exports. While the EU as a whole had a goods trade surplus of 156 billion euros in 2023, Ireland faced a substantial services trade deficit with the U.S. At 134 billion euros, largely due to the import of intellectual property and royalties. Trump’s trade policies have focused on reducing U.S. goods deficits through tariffs.
CORPORATE TAX TAKE
Ireland experienced a significant rise in corporate tax revenue, reaching 28 billion euros in the past year. This has positioned Ireland as having one of the healthiest public finances in Europe, with a considerable portion of tax revenues derived from U.S. multinationals. Trump’s proposed corporate tax rate cuts could impact Ireland’s tax income, especially if incentives for relocating production back to the U.S. are introduced.
TECH COMPANIES
Several major U.S. technology companies, including Google, Meta (formerly Facebook), Apple, and Microsoft, have their European headquarters in Ireland. Trump has expressed concerns about EU regulations affecting U.S. companies, including data protection laws overseen by Irish authorities. The country plays a key role in regulating firms with EU headquarters, imposing significant fines for breaches.
PHARMACEUTICALS
Ireland hosts large facilities for the world’s leading pharmaceutical companies, such as Johnson & Johnson, Pfizer, and Merck. These companies contribute significantly to Ireland’s exports, particularly in medical devices. Trump’s threat of imposing tariffs on pharmaceutical imports could impact Ireland, but the diversification of Irish pharmaceutical exports to international markets outside North America may help mitigate the effects.
(Reporting by Conor Humphries and Padraic Halpin, Editing by Timothy Heritage)
