ISME (the Irish SME Association) is calling for a strategic and balanced response from the EU to the tariffs announced this week by the US in order to protect Irish business interests and avoid unnecessary economic harm. Government met with trade representatives on 4th April to consider next steps in addressing the US tariffs issue.
ISME says the impact of the US tariffs reaches far deeper into the Irish economy than exporters alone. In a February 2025 survey of ISME members, only 11% of SMEs reported exporting directly to the US. However, over a third of Irish SMEs provide goods and services to US multinational companies based in Ireland. Alarmingly, 16% of those firms say their US multinational customers account for more than half of their total turnover.
Neil McDonnell, Chief Executive of ISME, said: “There is rising concern among Irish SMEs over the long-term intentions of US-based clients. A deterioration in these relationships could have serious implications for turnover and employment in the domestic economy. The response to the US tariffs must consider this wider ecosystem of trade, not just direct exports. Irish businesses are very concerned about an aggressive response by the EU which could raise the cost of imports, but they also recognise that the EU must stand up for itself in the face of coercive and economically flawed US trade policy, especially where it targets some of the world’s poorest developing nations.”
ISME warns that Ireland’s options are limited due to EU competency over trade. However, the Association outlines several actions that the Irish Government can take domestically to reduce the economic fallout and strengthen the SME sector:
- Deepen access to the EU internal market, particularly in Germany, France, Italy, and Spain.
- Proactively target Canadian retail markets as US products lose favour.
- Accelerate ratification of the CETA trade deal with Canada.
- Push for swifter progress on the MERCOSUR agreement.
- Hold a referendum on joining the Unified Patent Court to protect SME intellectual property in the EU.
- Drive competitiveness and productivity through regulatory simplification and reform.
- Narrow the gap between Ireland’s GDP-led foreign multinationals and the GNI*-driven SME economy, which comprises 99.8% of Irish businesses.
