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Dáil Éireann debate -
Wednesday, 4 Feb 2026

Vol. 1080 No. 2

Ceisteanna ó na Comhaltaí Eile - Other Members’ Questions

William Aird

Deputy William Aird

I welcome the Taoiseach's upcoming engagements in Washington and Philadelphia for St. Patrick's Day. These meetings come at a critical moment for Ireland as global trading conditions become uncertain. Our trading relationship with the United States is central to our economy. In 2024, Irish goods exported to the US reached a value of €72.6 billion, around 32% of all goods we sell overseas.

Pharmaceuticals accounted for 61% of these exports, which shows how dominant that sector has become. This sector brings jobs, investment and tax revenue but it also leaves us exposed. Ireland is more dependent on US markets than almost any other EU country. Unfortunately, there are signs of instability. Figures released early in 2025 showed that nearly half of all Irish goods exports in January went to the US, with medical and pharmaceutical products accounting for 61% of these exports. Recent US tariff actions and the threat of wider measures have already shown how volatile the situation is. In April 2025, exports to the US fell by 62% in a single month due to tariff uncertainty. Economists warn that broad US tariffs on EU products could cost Ireland more than €18 billion in lost trade. It would have a real impact on GDP, domestic demand and employment if a full trade war were to develop.

These figures underline two realities. Irish exporters are vulnerable to shifts in US trade policy, and jobs and investment are affected in every county. In my own constituency of Laois, only two IDA-hosted investment visits took place in 2025. This in no way reflects the county's potential. The decision by Leprino Foods to leave its Laois plant, putting 132 jobs at risk, shows the need for stronger supports and more diverse and robust investment. Ireland's economic model must be flexible enough to withstand external shocks. European unity on trade policy is important but we cannot rely solely on Brussels. We must go further. Ahead of his trip, will the Taoiseach clarify what risks to Irish economic interests arising from US trade and tariff policy have been identified by the Government? Will he set out the commitments and guarantees he intends to seek from US counterparts to safeguard Irish trade and investment?

Micheál Martin

The Taoiseach

I thank Deputy Aird for raising this important issue and the critical economic relationship between Ireland and the United States. Not too many Deputies in the House seem to want to mention that. "Economic relationships" seems to be a dirty word. It is enormous. The European Union-US economic relationship is the biggest in the world. It cannot be dismissed. The implications of any implosion of US-European relations would be very significant for our economy, for Europe's economy and for America's economy.

The Deputy is correct; bar Germany, Ireland probably has the strongest economic relationship with the US. That is quite an extraordinary statistic. US companies directly employ about 210,000 people in Ireland and indirectly support about 167,000 jobs. Those are the figures as of last March, which come from the IDA's US investment brief. US companies spent over €40 billion on goods and services, payroll and capital expenditure in Ireland in 2023. That figure was identified by AmCham, the American Chamber of Commerce Ireland. On the other side, more than 200,000 people are directly employed by 780-odd Irish companies across all 50 states in America. Irish companies are global companies. Our food companies are global companies. They have long gone past this small market. They manufacture, produce and procure food to sell all over the world. We are the fifth largest source of foreign direct investment into the United States, with investment by Irish companies valued at about $390 billion. That is a very significant economic relationship that puts bread on the tables of Irish workers the length and breadth of the country. Dáil Éireann needs to acknowledge that while also dealing with other issues. It cannot just be dismissed and put to one side. As Taoiseach, I have an obligation to protect livelihoods, workers and farmers in this country. A lot of food produced in Ireland is exported to the US.

The Deputy is correct; tariffs did create uncertainty. The European Union managed to negotiate a landing zone that Ireland, Europe and the world can live with in respect of the trading relationship, particularly in the areas of pharmaceuticals, which is a hugely significant area, medtech, technology and financial services.

The engagement is also in terms of the geopolitical turbulence that is going on at the moment. We have articulated our position on the Middle East and our position on Ukraine, for example, which is particularly important.

William Aird

Deputy William Aird

I thank the Taoiseach for his response. Ahead of the Taoiseach's US trip, it is essential that the Government identifies the risks posed by the US tariff policy and industrial strategy; sets out the commitments required to safeguard key export sectors, including pharmaceuticals and agrifood; and actively promotes market diversification and bilateral safeguards rather than relying on EU-level responses. I urge the Taoiseach to use every engagement in Washington and Philadelphia to secure protection for Irish producers, workers and communities, especially those in rural counties such as Laois where high-quality jobs are hard won and extremely valued.

Micheál Martin

The Taoiseach

I will alert IDA Ireland to the Deputy's comments on Laois. I know Deputy Fleming also has an interest there, as do other Deputies. Deputy Stanley has his hand up as well. I hope he keeps his hand up in respect of the economic relationship between the US and Ireland. Notwithstanding everything that has happened, there have been significant investments even since all of the turbulence. I will not name all of the companies but the bottom line is that Dublin, Cork, Galway, Clare, Kilkenny, Monaghan and Meath, just to mention a number of counties, all benefited in 2024 from investments from US companies. The research and development tax credit of an additional 5% has had a significant impact in terms of investment in research and development in existing multinational companies in Ireland and, of course, in our indigenous companies. Research is the future in terms of our capacity to export to the US and our capacity to attract foreign direct investment into the country.

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