Ireland’s exports of medical and pharmaceutical products soared by nearly 74% year-on-year in May, reaching €13.7 billion, according to the Central Statistics Office (CSO). The sector accounted for almost 59% of the country’s total goods exports that month, which stood at €23 billion.
The United States remains Ireland’s largest export destination. Exports to the US jumped by 86.5% in May compared to the same month in 2024, totalling €10.6 billion. Over the first five months of 2025, exports to the US surged by 153%, hitting nearly €71 billion.
Trade analysts suggest the sharp increase reflects a rush by companies to move goods ahead of possible new US tariffs on EU products. Reports indicate firms have been stockpiling in the US in anticipation of elevated levies under President Donald Trump’s trade policy, which has already increased tariffs on several sectors.
From January to May 2025, Ireland’s overall goods exports rose to €134.4 billion — an increase of 46.9% or €42.9 billion compared to the same period last year. Imports also grew, up by €4.2 billion (7.8%) over the same period.
Imports of medical and pharmaceutical products alone surged by more than 60% in May to €1.9 billion.
Carol Lynch, Head of Customs and International Trade Services at BDO, said the data reflects a “pause” phase in trade tensions, when the US had suspended tariffs at 10% pending negotiations with the EU. “At the time, the threat was an increase to 20% — now raised to 30% as of last week,” she said, warning of further hikes.
She noted that many companies were also concerned about possible Section 232 investigations targeting pharmaceuticals and semiconductors, which had been initially excluded from tariffs. “We would expect to see continued export increases due to stockpiling,” she added.
Pharmaceutical exports include not just finished drugs but also intermediate products and active pharmaceutical ingredients (APIs), many of which are vital for US-based manufacturing, including high-demand weight loss medications.
Lynch warned of long-term impacts if President Trump’s stated goal of repatriating pharmaceutical manufacturing to the US advances. Although major firms like Novartis and Eli Lilly have announced US investments, she noted that building domestic capacity would take years. Trump has floated a tariff scale that could reach 200% within a year.
Janette Maxwell, Partner at Grant Thornton, echoed concerns over the unpredictability of US-EU trade relations. “Even before tariffs are applied, the instability is damaging. Irish firms may be forced to look for new markets as US consumers may resist price hikes from steep tariffs,” she said.
With pharmaceutical exports forming a cornerstone of Ireland’s economy, the escalating trade tensions pose a serious risk to its export-driven growth.
