Trump trade war threatens Ireland's booming pharmaceutical exports

U.S. tariffs risk disrupting Cork's vital pharma industry and Ireland's economic engine.

A sign for U.S. pharmaceutical company Johnson & Johnson is seen beside a road in Ringaskiddy, near Cork in southern Ireland, on April 10, 2025. Photo by Peter Murphy/AFP

By Anna Fadiah and Hayu Andini

Vast pharmaceutical factories dot the lush countryside of southern Ireland, especially around the quiet village of Ringaskiddy in County Cork. These sleek manufacturing plants, operated by global heavyweights like Pfizer and Novartis, have transformed this once-rural region into a critical engine of Ireland’s modern economy. But now, that success story faces serious headwinds. The Trump trade war threatens Ireland's booming pharmaceutical exports—an escalating economic dispute that could unsettle thousands of jobs and shake one of Europe’s most export-driven economies.

At the heart of this drama is Ringaskiddy, where everything from Pfizer’s famous Viagra pills to cancer medications are produced and shipped across the Atlantic. The US market is the primary destination for these pharmaceutical exports, making Ireland—especially Cork—heavily reliant on open and tariff-free trade routes. In 2024 alone, Ireland exported nearly €100 billion worth of medical and pharmaceutical goods, a stunning figure that represents about 45% of the nation’s total exports.

That number isn’t just symbolic; it’s foundational. Much of the economic stability that has allowed Ireland to recover from previous financial crises, weather Brexit, and avoid broader EU stagnation has stemmed from this pharma-driven growth. And yet, all of this could be imperiled if the Trump administration follows through with its latest threat—targeted tariffs on pharmaceuticals produced outside of the United States.

During campaign rallies and media interviews, Trump has repeatedly warned that the American pharmaceutical supply chain is too reliant on foreign countries, naming Ireland as a top offender. In his usual combative tone, the president claimed, “American drugs should be made in America, not in places like Ireland, China, or India.” With the 2024 election cycle heating up and economic nationalism rising in the US, the possibility of Trump imposing punitive tariffs on pharmaceutical imports has moved from rhetorical posturing to a real policy risk.

That looming threat is not lost on the workers and businesses in Cork. In and around Ringaskiddy and the neighboring commuter town of Carrigaline, the pharmaceutical sector directly employs around 20,000 people in well-paid, specialized roles—from laboratory researchers to logistics experts. The fear now is that any disruption in trade with the US could lead to cost-cutting, layoffs, and even plant closures. Local unions have already sounded the alarm, urging both the Irish government and European Union to step up diplomatic efforts to shield the industry.

“We are extremely concerned that political decisions in Washington could destroy livelihoods here,” said a spokesperson for SIPTU, Ireland’s largest trade union. “Pharmaceuticals are not just a business here; they’re a way of life for entire communities.”

The Irish government is equally uneasy. Officials in Dublin have so far taken a cautious approach, trying to avoid confrontation with the Trump camp while quietly lobbying US trade officials and leveraging Ireland’s influence in Brussels. According to senior Irish diplomats, behind-the-scenes discussions have been ongoing since late 2023, with Ireland emphasizing its role as a trusted transatlantic partner and a hub of pharmaceutical innovation. EU Trade Commissioner Valdis Dombrovskis has also hinted that the EU could retaliate with its own tariffs if the US targets pharma exports unfairly.

But for now, the mood in Ringaskiddy is one of anxious waiting. Despite the high stakes, there’s little ordinary workers or even local managers can do to influence events unfolding in Washington. Many remember the previous rounds of Trump-era tariffs on steel and aluminum, which caused temporary dislocations across Europe. The difference this time is the scale—pharmaceuticals are Ireland’s top export, and losing US market access would have deep structural consequences.

Economists warn that the long-term effects of new tariffs could be severe. A recent analysis by the Economic and Social Research Institute (ESRI) predicted that even a modest 10% tariff on Irish pharmaceutical exports could reduce Ireland’s GDP by 1.5% annually. More aggressive measures, such as a 25% tariff, could trigger a recession. The knock-on effects would also ripple through real estate, retail, and service sectors in areas like Cork, which have grown thanks to pharmaceutical prosperity.

Adding complexity to the situation is the fact that many of these pharmaceutical companies are American multinationals. For example, Pfizer has operated in Ireland for over 50 years, making it one of the country’s longest-standing foreign investors. In fact, Ringaskiddy was home to Pfizer’s first facility outside the United States, and its ongoing expansion reflects deep mutual ties. Yet, even such legacy partnerships may not offer immunity in a climate of protectionism.

There’s also the question of whether such tariffs would even be legal under current World Trade Organization (WTO) rules. Ireland, as a member of the EU, benefits from bloc-wide trade agreements and legal protections that theoretically guard against discriminatory measures. But Trump’s previous actions have shown a willingness to bypass or challenge international norms if he believes it serves America’s interests.

In the meantime, local residents continue to live under a cloud of economic uncertainty. “We’ve built our lives around the assumption that these companies are here to stay,” said Aisling O’Connell, who works in quality control for a major pharma firm in Ringaskiddy. “I’m not sure what we’d do if that changed.”

The question now is whether diplomatic finesse can defuse the crisis—or whether a renewed Trump presidency will follow through on his warnings. What’s clear is that the Trump trade war threatens Ireland's booming pharmaceutical exports in ways that could leave lasting damage not only to the Irish economy, but to the broader transatlantic relationship.

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