1 week Ago By Emma Mooney
DONALD TRUMP announced his punishing tariffs package from The White House on Wednesday. The enormous 20 per cent tariff placed on all EU goods travelling into the US has set Europe and America on a collision course that could devastate the Irish economy. The tariffs will directly impact the competitiveness of Irish products in the American market.
This is because countries such as the UK and New Zealand escaped with only ten per cent tariffs. Products such as Irish whiskey and dairy, which have a huge market in the US , will become more expensive than foreign rivals. The Trump tax has led many firms to look at alternative arrangements to the American market.
Writing in The Irish Sun today, Dr Deidre Giblin, Chair of the Ireland Canada Business Association, says that building the Irish relationship with Canada can soften the blow of US tariffs. President Donald Trump’s so-called “Liberation Day” tariff announcements are a further blow to free trade, positive bilateral relations and the global economy . This regressive move will dramatically increase the cost of doing business between the US and Ireland, potentially undoing decades of relationship-building by businesses and policy-makers on both sides.
It is now clear that Ireland can no longer rely on its trade relationship with the US. So how can Ireland navigate this new and challenging economic landscape? I believe the answer lies in our relationship with Canada. As Chair of the Ireland Canada Business Association, I have watched first-hand the economic relationship between Ireland and Canada flourish in recent years.
Canadian multinationals such as Circle-K, Molson Coors, Air Canada, IMAX, Shopify, PressReader and many others — over 75 in total — have chosen Ireland as their gateway to Europe. When asked why, our members tell us that strong cultural affiliations, availability of English-speaking talent and direct connectivity are the key factors. These companies contribute significantly to the Irish economy, employing over 15,000 people in Ireland directly and a further 12,000 indirectly.
And their gross wage contribution is €750million, generating employment-related taxes of €187million. A report by economist Jim Power, commissioned by the ICBA in 2024, revealed that goods exports from the Republic to Canada expanded by over 260 per cent since 2016. The growth in service exports has also accelerated at a rapid pace, increasing from €592million in 2010 to €2.
88billion in 2021. And it gets better, with Power identifying that, given the right conditions, Irish exports to Canada could double within five years. With Canada now explicitly expressing its intention to get closer to Europe, many other Canadian companies will now be considering Ireland as a potential base for their EU operations.
Furthermore, as Irish exporters seek to expand into new markets and build relationships with open, friendly economies, Canada represents a valuable opportunity for them. This is a unique and highly valuable opportunity, not only to offset the negative impacts of Trump’s protectionist policies, but to diversify Ireland’s bilateral trade relationships and future-proof our economy. So how do we realise this opportunity? The ICBA identified two key places to start: 1) The Irish government must ratify the Comprehensive Economic and Trade Agreement.
The Irish government needs to ratify the CETA, a significant trade deal between Europe and Canada that promotes freer trade. Key features include the removal of 99 per cent of duties, access to public procurement contracts, and stable conditions for investors. After its provisional implementation in 2017, trade between Ireland and Canada increased by over 30 per cent.
Currently, 15 EU member states have ratified CETA, and the ICBA is urging Ireland’s government to follow suit and to act quickly on their intention to ratify as specified in the Programme for Government. 2) Make it easier for Canadian companies to do business in Ireland. Our members — some of Canada’s largest employers — have told us that the rising cost of doing business in Ireland, and the increasing regulatory burden, are a significant risk factor for their further growth in Ireland.
Specific factors driving up costs for ICBA member companies include labour, energy, staff retention, regulatory compliance, rent and insurance. Respondents also identified new regulations such as pension auto-enrolment and employee leave as areas of concern. Other areas hampering further growth include the cost and availability of housing for rental and ownership purposes, water and wastewater infrastructure, and availability of alternative energy.
By addressing these areas as a matter of urgency, Ireland will not only attract new Canadian multinationals to establish in Ireland, but also facilitate the further growth of those already here. Policy needs to be directed towards investment in these areas, not least because this is exactly what Ireland’s competitors are doing. We are facing very uncertain times, but by investing in, and building on, our relationship with Canada — one of the world’s largest economies and a great friend to Ireland — we can significantly soften the blow of Trump’s protectionist policies and considerably strengthen Ireland’s economy into the future.
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