Irish goods exports to the United States surged threefold in February compared to the same month last year as firms stockpiled produce in the US in advance of the threatened introduction of tariffs.
The latest trade figures from the Central Statistics Office (CSO) show the value of exports to the US increased by €8.7 billion (210.5 per cent) in February, rising from €4.2 billion to €12.9 billion.
The CSO noted that exports to the US accounted for 52.5 per cent of the State’s total export trade in February compared to 26 per cent in the same month last year.
The bulk of the trade related to pharma products. Chemicals and related products, which include medical and pharmaceutical products, made up 91 per cent of total exports to the US in February, the CSO said.
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While US President Donald Trump has put a stay on his proposed 20 per cent reciprocal tariffs on EU imports, a baseline tariff of 10 per cent on most foreign imports to the US kicked in on April 5th.
Pharma companies here have been fast-tracking product into the US to avoid incoming tariffs.
The CSO data show that seasonally adjusted trade exports (overall) grew by 2.8 per cent to €25.5 billion in February, a record monthly total.
Exports of medical and pharmaceutical products made up almost two-thirds of this value at €15.5 billion (63.2 per cent).
Seasonally adjusted goods imports grew by 14.8 per cent to €12.6 billion when compared with January, generating an overall trade surplus of €12.9 billion in February.
The CSO noted that Ireland’s top exporting partners were the US, the Netherlands and Germany, with Ireland exporting 52.5 per cent, 7.7 per cent (€1.9 billion) and 6.2 per cent (€1.5 billion) of total goods respectively to these countries.
Ireland imported the highest value of goods from the US, Germany and Britain, with these countries representing 16.6 per cent (€2 billion), 12.8 per cent (€1.5 billion) and 11.6 per cent (€1.4 billion) of the total import trade respectively for February.
“This was another strong performance but, as in January, the standout from today’s CSO release is the big jump in exports to the US,” EY Ireland partner and chief economist Loretta O’Sullivan said.
“This bears all the hallmarks of a pre-emptive strike. The pharmaceutical sector was not alone in front-loading in February; the drinks industry also took steps to get in advance of policy shifts by the Trump administration, a smart move now that whiskey and other products have been hit with a 10 per cent tariff,” she said.
“Ireland’s significant trade linkages with the US mean businesses here are particularly exposed to transatlantic barriers, prompting them to get inventory into the American market as fast as possible. We’ll be closely watching to see if this trend continues in March,” she said.
