Trump Tariffs Pose Significant Threat to Irish Food & Drink Exports
IFA analysis carried by Chief Economist Tadhg Buckley shows the significant threat posed to Irish food and drink exports if the tariff hikes proposed by US President Donald Trump go ahead next week.
Ireland exported circa €1.9bn worth of food and drink products across the Atlantic last year.
IFA President Francie Gorman the US market is an important outlet and accounts for circa 11% of our total food and drink exports.
“We have succeeded in gaining a foothold in what is a large market. Not only that, but we have done it with some very strong brands that are built on the foundation of farmers producing quality material for processing. The scale of the tariffs being talked about would have a serious impact on what we have achieved,” he said.
Within the €1.9bn figure, dairy at €830m and drinks, predominantly whiskey, at €900m account for 91% of what we export. We also export pigmeat (€23m), beef (€8.8m) and seafood (€3.8m)
IFA Chief Economist Tadhg Buckley pointed to the importance of the Kerrygold brand in the US.
“Kerrygold is now the second best-selling butter brand in the US, where we sent almost €500m worth of product in 2024. The market accounts for about 7.5% of our total dairy exports. That helps to underpin the milk price paid to Irish dairy farmers. Global dairy markets are in relatively good health at the moment, but the introduction of tariffs could have far-reaching impacts as we hit the peak supply period in Ireland,” he said
“There are also real concerns for the grain sector if the drinks sector is hit,” he said.
Looking at the EU/US relationship for food and drink, there is a trade surplus on the EU side of €17.6bn, which is actually greater, proportionately, than the overall trade surplus for all goods.
Tadhg Buckley said there will be a good deal of apprehension ahead of the April 2nd date set by President Trump.
“The danger is that a trade war will hit the value of our exports. Within the EU, our export profile as a proportion of what we produce is far greater than most other countries”.