Donald Trump’s recent claim that “Ireland was very smart, they took our pharmaceutical companies away” has drawn scrutiny and reignited debate over international trade, as tensions escalate between the US and its trading partners, particularly in Europe.
While Ireland has certainly benefited from significant investment by US pharmaceutical firms, the claim that it has “taken” the industry is misleading. The US remains home to over 1,500 pharmaceutical manufacturing plants, compared to about 90 in Ireland. However, Ireland’s role as a major exporter of pharmaceuticals — with €44 billion in drug sales to the US last year — is undeniable.
Trump has long threatened a specific 25% tariff on pharmaceuticals made outside the US, a move that would have serious implications for Ireland. However, discussions between Washington and the EU have so far failed to make progress. US Commerce Secretary Howard Lutnick recently stated that pharmaceutical tariffs are “not available for negotiation” and will be dealt with separately from broader EU trade talks.
“We need to make medicine in this country. We learned that during Covid,” Lutnick said in a televised interview, reinforcing the administration’s push to repatriate key industries.
While the White House has introduced a 90-day “pause” on a previously announced 20% tariff for EU imports, it has replaced it with a 10% baseline rate — a considerable increase for many Irish exporters. Key sectors like food and beverages are affected, including Ireland’s €1.9 billion exports of whiskey and butter to the US. In contrast, other EU countries face even steeper tariffs of up to 25% on cars, steel, and aluminum.
The semiconductor industry — vital to global technology supply chains — may also be at risk. Ireland hosts 15 of the world’s top 30 chip supply chain firms, including Intel, which has invested €30 billion in the country. While semiconductors are currently exempt from US tariffs, Trump has signaled plans to impose duties in the future, raising questions about whether key components made in Ireland could be taxed.
The drive to bring chip production back to US soil has proved difficult. Even Taiwan Semiconductor Manufacturing Company (TSMC), which received $6.6 billion in US funding for its Arizona plant, has faced major staffing shortages and has launched new training programs in response.
Despite Trump’s insistence that the tariff policy is “going very well,” markets tell a different story. The dollar has fallen 10% against the euro since January, US stocks have dropped 11% since February, and borrowing costs surged earlier this month before Trump paused most tariffs — except on China.
As negotiations continue, the coming weeks will test whether Trump can secure new trade deals or if the threat of steep tariffs will push the global economy into further uncertainty.
