Business throughout the country are today analysing the potential impact of the US trade tariff plans announed by President Trump.
For many the uncertainty around their furture trade with the US will continue until the EU reponse becomes known, with a keen eye being kept on how the pharmaceutical sector will be impacted.
Limerick-based whiskey producer Tony Foote, whose company produces the Foxes Bow brand and exports to the US, says there is some relief now that the US tariff plan has been announced so that producers understand the path forward.
Mr Foote has been exporting his relatively young brand of whiskey to the US since 2023.
He said they took the decision to shift a large amount of product to the US, which is the company's largest market, in advance of Donald Trump's inauguration, anticipating the president would impose tariffs.
"That buys us an additional six months. It kicks the challenges down the road in the short-term so that we can continue to serve our customers without hitting the price of our product," Mr Foote said.
"Hopefully it will not be the doomsday scenario that everyone anticipates, and we will be able to hold our price, which is still very competitive compared to some US bourbon brands.
"But we would certainly be looking at our margins to see can we save there without passing on price rises in six months' time," he said.
President Trump unveiled a 10% minimum tariff on most goods imported to the US - with a higher 20% rate for the EU - kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
Despite the challenges that tariffs undoubtedly impose, Mr Foote does not anticipate exiting the US market. It's currently his biggest customer, in Texas, and now he has entered Florida as well.
"No, I don’t think we’ll be exiting the US market. Irish whiskey generally has a great name in the US, with a huge following and I believe it can stay price elastic, I think we can sustain that trajectory.
That being said he believes the tariffs imposed by the US is a double-edged sword and presents opportunities and forces businesses to look for and seek new markets.
"There is a lot of fear and fatigue out there from this whole tariffs talk. We just launched our product in Ontario in Canada where off-licence retailers had taken thousands of US bourbon products off the shelves, leaving a wide open space for us to go in there.
"We got good traction by influencers and it was followed up on TV so, yes, while the focus is on the US there are a lot of opportunities out there created by this.
"We are a small brand and we can lean into those opportunities," he added.
'The uncertainty is difficult'
The employers' group Ibec warned that the tariffs could result in a 2% to 3% drop in Ireland's overall exports.
Aerogen is a Galway company that makes aerosol drug delivery devices for ventilated patients. The US is its biggest market, accounting for over 40% of revenue.
Pharmaceuticals are not covered by last night's tariffs announcement, but there are fears they could be added in the future.
It is also unclear what it all means for medical devices.
"Uncertainty in terms of investment can be very difficult," said Aerogen Founder and CEO John Power.
"You are trying to look at business models and returns on investment for projects, and if you don't know where you'll be doing them, and what return is likely to come from different markets, that stalls business."
"That is what we are seeing across the sector right now, a lot of holding back of investment, and that will continue until there is a settlement of this dispute," Mr Power said.
The Government has said that it understands that medical devices are covered by the tariffs announced last night but that a technical breakdown would be required from the US to get further clarity.
It is also warning of possible future US measures targeting the pharmaceutical industry.
'We want to get back to zero (tariffs) as soon as possible'
Businesses and communities across the northwest are digesting the details of US president Donald Trump's tariff announcement.
Facing tougher times are distilleries. "It's ridiculous," said Pat Rigney, co- founder of The Shed Distillery in Drumshanbo, Co Leitrim.
"The US is over 35% of our business," he told RTÉ's News At One. "It's always been a very Important part." Mr Rigney, whose Drumshanbo Gin is a successful global brand, said there had been no tariffs on alcohol moving between Ireland and America since 1997.
"That's why it's so ridiculous. The president talks about reciprocal tariffs. If he was honest about it there are no tariffs. We want to get back to zero as soon as possible."
Niall Murray, MD of Collins McNicholas group, which recruits staff for multinationals, said companies were still digesting the details of Mr Trump’s announcement.
"It's very early days. At first glance it looks like good news for the pharmaceutical sector in Ireland," he said.
Pharma has a significant presence in the west of Ireland. In Sligo town Abbvie employ several hundred people at two plants.
"It's seen as a very good employer, an employer of choice."
Mr Murray said the company and others were still hiring despite the overall uncertainty.
"There are still quite a number of opportunities."
He said ATU Sligo provides graduates with the much sought after "engineering, science and quality" skillsets US multinational look for.
Fintan Kennedy, President of Sligo Chamber of Commerce and Industry said it was good to have clarity.
"Now we know our starting point," he said. "We can deal with what's in front of us."
Sligo is close to the border with Northern Ireland where tariffs of just 10% will be applied to exports to America.
"We have the Windsor framework in place and that will give comfort," Mr Kennedy told RTÉ News.
However, he said that the northwest needed investment in rail, roads, energy and housing to remain competitive.
