The US Administration has announced a pause to the universal tariffs announced on 2 April which had led to volatility in the stock markets, fears of recession and reciprocal tariffs from certain jurisdictions. 

What's the likely impact on the Life Sciences industry in Ireland? Mark Carew, Audit Partner and Life Sciences industry lead at RSM Ireland, gives his view.

There is a 90 day pause on the higher rate tariffs announced last week but the 10% blanket rate will stay in effect as discussions take place. At RSM Ireland, we welcome this pause to allow time for bilateral negotiations. However, there remains uncertainty as to whether special tariffs will be levied on pharmaceutical products which were excluded from the 2 April announcements.

As the negotiations take place, with Governments and businesses continuing to assess the impact of the evolving position. It will be interesting to see how the bilateral negotiations play out and whether there will be any announcements of separate tariffs on pharmaceuticals given the concentration of pharmaceutical manufacturing in Ireland. Ireland is potentially more vulnerable to tariffs in this sector than many other countries, as exports to the US make up a much larger share of the economy than that of other countries.

Ireland has long been a leader in pharmaceutical manufacturing, hosting over 85 multinational sites that drive employment, exports, and economic growth. Ireland is now the world’s third largest exporter of pharmaceuticals and overall, this sector is worth over €100 billion annually to the Irish economy.

Ireland’s total exports were approximately €72 billion to the US in 2024, a large proportion driven by pharmaceutical products manufactured by US multinationals. Given the contribution of the Life Sciences sector to the Irish economy and the quantum of pharmaceutical exports, it may be one of the main sectors impacted by these tariff announcements and subsequent negotiations. 

We'll be keeping a close eye on the potential tariffs on pharmaceutical products and the impact on Irish businesses. Keep up to date with the latest updates on our Life Sciences page.