If you’ve been following the news in recent months, you’ll have undoubtedly seen headlines about tariffs, particularly those introduced by the US government.

While tariffs are certainly nothing new, the new wave of policies from the White House is set to affect 60 countries.

At the time of writing, the measures include a 145% tariff on Chinese imports into the US, with the exclusion of certain technological goods, and a flat minimum rate of 10% on goods from all other countries, including Ireland.

While they were initially introduced as a way to stimulate the domestic economy in the US, the tariffs will likely – and have arguably already – have wide-reaching implications for businesses across the globe.

In fact, if your business exports goods to the US, sources materials from American suppliers, or even operates in a sector that depends on pan-Atlantic trade, the situation could significantly affect you.

So, continue reading to discover what we know so far and what this could mean for Irish businesses – especially if you’re considering exiting in the near future.

News surrounding US tariffs has been changing daily since January

While tariffs have been discussed at length recently, they’re nothing new, and the current president has actually been mentioning them for some time.

Indeed, during his campaign for re-election in 2024, Donald Trump repeatedly pledged to impose tariffs on several countries. Additionally, he claimed that American companies who outsourced manufacturing would also be penalised with the aim of bringing production back to the US.

Then, on his first day in office, Trump stated that 25% tariffs on goods from Canada and Mexico would begin from 1 February 2025 and described 2 April 2025 – when the broader set of tariffs would be established – as “liberation day”.

In total, tariffs were announced on imports from 60 countries. These included a 20% tariff on goods from the European Union (EU), 46% on Vietnamese products, and 32% on Taiwanese goods.

The most severe were directed at China, where a 104% rate came into force on 9 April 2025.

China quickly responded, raising tariffs on US goods from 34% to 84%. In retaliation, the US then increased tariffs further, pushing the rate to 145%. This ultimately resulted in considerable volatility in global markets, which our next article covers in more detail.

Read more: Don’t fall for stock market pessimism. Do this instead

Shortly after “liberation day”, on 9 April 2025, the US announced a 90-day pause on many of the new tariffs. While this did offer some short-term market relief, it’s important to note that the minimum 10% tariff on goods entering the US from any country remained in place.

Granted, exemptions have been made for specific sectors – such as pharmaceuticals, microchips, and smartphones – but for most goods, the tariffs remain.

Businesses exporting to the US could face higher costs, among other challenges

The Irish government warned in March 2025 that up to 80,000 jobs could be lost here if the trade war between the US and EU continues to escalate, RTÉ reveals.

The Minister for Finance, Paschal Donohoe, also said that “there may be difficulties in providing a significant support package for businesses” if trade is affected, and that “changes in taxation” might be on the cards.

While the situation is still unfolding and any new policies would take time to be enforced, it’s worth keeping an eye on how the government responds to US tariffs moving forward.

Most pressingly, if your business exports goods to the US, the most immediate effect could be a rise in costs.

Here are a few key questions, answered.

How do tariffs work?

Tariffs essentially act as a tax on your product. Unless you can absorb the cost internally by reducing operational costs or improving efficiency, your goods could become less competitive in US markets. This could quickly result in reduced sales or tighter margins.

Which industries are most likely to be affected?

Some industries are far more vulnerable than others, such as Irish whiskey.

The BBC claims that the US is the main export for Irish whiskey companies, and that the proposed 200% tariff on alcohol being brought into the US could have devastating effects. In the main, prices could rise, discouraging American consumers and distributors and placing pressure on exporters.

The pharmaceutical and technology sectors – which represent a significant portion of Ireland’s exports – could also be affected. Just remember that some products may still benefit from tariff exemptions.

Which costs will go up or become unpredictable?

The uncertainty around tariffs could cause considerable disruption, and if your business relies on predictable pricing due to tight margins, volatility may prove costly.

It’s also worth remembering that there could be some more indirect effects. For instance, if you run a hospitality business and rely on US imports, such as specific ingredients, you may see prices increase.

Meanwhile, disruption to global supply chains could create logistical challenges, meaning that delays or shortages may come as a result.

It’s vital to remember that it’s not all bad news, and we could help you overcome the uncertainty

While the headlines may have been concerning in recent months, and your nerves around tariffs may be somewhat justified, it’s vital to remember that it isn’t all doom and gloom.

According to the Irish Times, Ursula von der Layden, the president of the European Commission, has “reaffirmed the EU’s commitment to engaging in negotiations, while making clear that the EU stands to defend its interests through proportionate countermeasures if necessary”.

As for Ireland specifically, the Minister for Enterprise, Peter Burke, said his department has an “expansive trade mission plan in place”, and that there are dedicated schemes that can help businesses export to the US.

This is undoubtedly a sign of hope. Remember, despite all the noise, it’s vital to remain calm and focused on the things you can control.

Get in touch to work with experienced specialists in financial planning

If you’re planning on exiting your business in the near future or are concerned about how your finances might be personally affected, we can help.

Our experts can work with you to assess how your personal finances might be affected by a fall in business profits and identify practical steps to address any issues. We can also help you maintain financial confidence, even in times of uncertainty.

So, to find out more about the invaluable support we can offer you, email us at clients@iqf.ie, or call 353 71 915 5560.

Please note

This article is for information only. It does not constitute advice. All information is correct at the time of writing and is subject to change in the future.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.