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Irish finance minister delivers warning over US tariffs

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Paschal Donohoe said the government is preparing for "real and significant" difficulties

Ireland's minister for finance is "extremely concerned" about the potential effect proposed US tariffs on pharmaceutical exports could have on Ireland's economy.

Speaking to Irish broadcaster RTÉ, Paschal Donohoe said the Irish government was preparing for "real and significant" difficulties if US President Donald Trump imposes tariffs on drug imports.

Speaking on Thursday, President Trump suggested there would be specific tariffs on pharmaceuticals as the US "doesn't make anything" in terms of drugs and medicines.

Earlier in March he told the Taoiseach (prime minister) Micheál Martin Ireland had the "entire US pharmaceutical industry in its grasp," during his visit to The White House.

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President Trump said there would be specific tariffs on pharmaceuticals.

Speaking to RTÉ on Friday, Martin said the "overarching priority" for the government is to protect Irish jobs amid concerns that Trump's tariff plans will affect pharmaceutical and other firms' presence in Ireland.

However Donohoe said that while the Irish government was preparing for serious disruption "collectively, we will be able to rise to the test ahead."

Donohoe said he wanted to "underline the scale of the change", that Ireland will have to deal with.

"I'm not going to deny for a moment, there will be challenges. It's going to be so difficult, but that's where our focus and our work will now begin."

Mr Donohoe said the Republic of Ireland was facing a "complex and significant economic challenge that really does matter for Ireland".

He said the country had faced many challenges over the last decade and he regretted it was facing another one.

"It's the world as it is, and we need to work together, and the government will, with the sector, with our economy overall, to deal with these issues in so far as we can," he said.

Donohoe made assurances that Ireland was coming at this from a position of strength.

He said: "Our public finances are in surplus, 2.8 million people are at work in our country, and we have to use those strengths to help navigate our economy and our people through what may lie ahead."

How do tariffs work?

Tariffs are taxes charged on goods imported from other countries.

The companies that bring the foreign goods into the country pay the tax to the government. Firms may choose to pass on some or all of the cost of tariffs to customers.

Trump said his tariff policy is aimed at protecting American businesses and boosting manufacturing in the US.

Irish exports to the US have continued to surge ahead of expected tariffs being imposed next week.

The value of Ireland's US goods exports in January was almost €12bn (£10bn), up more than 80% compared to the same month in 2024.

That is likely to reflect companies getting goods, particularly pharmaceuticals, into the US ahead of any new tariffs.