Trump Tariffs May Cost NI Businesses Over £100 Million
An economist estimates that tariffs as high as 20% on products from Northern Ireland entering the United States could result in at least £100 million in potential revenue losses for local businesses.
The US President, Donald Trump, is anticipated to unveil another series of tariffs on Wednesday.
The British government has been attempting to seek an exception but now anticipates that tariffs will be applied to British products .
In 2023, Northern Ireland exported approximately £1.3 billion worth of products to the United States, primarily focusing on sectors such as pharmaceuticals and industrial machinery.
Customs duties function as taxes imposed on products that come into the country from overseas.
Governments introduce tariffs with the aim of shielding domestic producers from global competition.
Ulster University economist Esmond Birnie has estimated that a 20% tariff would result in a "limited but specific" loss of £100 million in sales.
He mentioned that secondary and tertiary ripple effects, like a general decline in worldwide commerce, might increase the total adverse effect to between £200m and £300 million.
He mentioned that even an amount of £100 million could still significantly influence the broader economic performance.
He mentioned that it represents merely around 0.2% of Northern Ireland’s total GDP, approximately £50 billion.
If, however, Northern Ireland’s GDP growth for this year falls significantly below 1%, which is quite probable, then that figure would represent only a fraction of the anticipated economic expansion.
Stuart Anderson from the NI Chamber of Commerce stated that the United States holds significant importance as a market. He urged the UK government to provide a clear response following Wednesday's announcement.
He mentioned that this might become "difficult" if the EU and UK react in distinct ways.
'Strategic response'
U.S. tariffs might potentially have a greater impact significant impact on the economy of the Republic of Ireland.
Of all the European Union nations, Ireland depends most heavily on the United States for exports.
In 2024, nearly one-third of the nation's total exports were destined for the United States, amounting to €73 billion (£61 billion).
President Trump had earlier expressed his dissatisfaction with the extent of manufacturing activities. Pharmaceutical companies from the US based in Ireland .
In the Irish Parliament, Taoiseach (Irish Prime Minister) Micheál Martin stated that investors in Ireland are currently “holding back” their decisions to observe how the situation with tariffs unfolds.
He stated that the EU would adopt a "strategic response," emphasizing the importance of ensuring that any retaliatory actions do not exacerbate the issues at hand.
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