US President Donald Trump has expressed anger over Ireland’s large trade surplus, primarily driven by pharmaceutical exports, including weight-loss drugs, and is reportedly preparing tough measures, according to Bloomberg.
Ireland has benefited greatly from international investment, thanks to its low tax rates and EU membership. Major companies like Apple, Meta, and Intel have their European headquarters in the country, alongside pharmaceutical plants such as Eli Lilly & Co., which produces key ingredients for popular weight-loss drugs like Mounjaro and Zepbound.
However, the surge in trade has sparked criticism from the US. Trump remarked that “this beautiful island of five million people controls the entire US pharmaceutical industry” during a meeting with Irish Prime Minister Micheál Martin. He also stated that he wants to “even out” trade relations, suggesting the possibility of sanctions. According to Ireland’s statistics office, the country exported €72.6 billion worth of goods to the US in 2024, with a trade surplus of €50.1 billion.
In response, Dublin is ramping up its diplomatic efforts. Ahead of St. Patrick’s Day, Irish officials are meeting with their US counterparts to highlight the mutual economic benefits. Mike Beary, former head of Amazon Web Services Ireland, noted, “We have to gently remind key decision-makers in the US that the economic relationship is now a two-way street.”
Despite these efforts, the threat of US tariffs remains. The US could impose 200% tariffs on EU alcohol, which would severely impact Irish whiskey exports. Economist Dan O’Brien warned that even a 10% tariff would have a significant negative effect on Ireland’s economy, as it is the largest per capita goods exporter to the US in Europe. If the US imposes tariffs on pharmaceuticals or other goods, Ireland could face serious economic challenges.
