IRISH EXPORTS to the United States suffered a sharp decline in July, as earlier stockpiling by US importers faded and newly introduced tariffs began to be felt in force.
According to the latest figures from the Central Statistics Office (CSO), exports to the US dropped by €909 million year-on-year, marking a 17% decrease to €4.4 billion in July.
The US remains Ireland’s top export destination, accounting for over a quarter of total goods exported.
Overall, the value of Irish exports fell by just over 5% compared to July 2024, with a total decline of €919 million.
In April, President Donald Trump introduced a 10% baseline tariff on all imports, sparking a rush among importers to front-load deliveries before additional costs hit.
This flurry of stockpiling, particularly in pharmaceutical goods, contributed to a surge in Irish exports during the first half of the year.
Between January and July, total exports to the US reached €80.4 billion, more than double the figure for the same period in 2024.
But that surge has now levelled off.
July marked the second consecutive monthly decline in pharmaceutical and medical exports, which slipped by 1.5% to €7 billion.
While this sector still represents over 40% of Ireland’s total exports, the slowdown reflects the diminishing effect of early-year stockpiling and uncertainty around the tariffs.
Another area of concern was the dramatic 47.5% collapse in exports of organic chemicals, which dropped by €1.1 billion year-on-year.
The downward trend in exports has been influenced by uncertainty around the EU-US trade relationship, which lingered until late July when both sides struck a provisional deal.
The agreement established a 15% tariff ceiling for most goods, including pharmaceuticals, bringing some relief to Irish exporters and their US customers.
Carol Lynch, head of customs and international trade at BDO, noted that July’s figures reflect a transitional phase.
“At that point, the EU-US agreement was still under negotiation, so exporters were facing significant ambiguity,” she said.
“The handshake deal at the end of July brought some much-needed clarity and a sense of stability.”
On the import side, Ireland also recorded a slight decline.
Imports fell by €92 million, which is just under 1%, year-on-year, totalling €12 billion in July.
However, imports of medical and pharmaceutical products bucked the trend, rising sharply by €1.2 billion to €2.5 billion.
The US is Ireland’s second-largest source of imports, behind Germany, accounting for roughly 14% of inbound goods.
Meanwhile, the US economy is also showing signs of strain from ongoing trade instability.
Industries with heavy exposure to imports and exports, like energy and manufacturing, reported job losses in August.
Overall, the US added only 22,000 new jobs during the month, which led Trump to fire the head of the Bureau of Labor Statistics (BLS) and replace her with a Trump ally instead.
Some industry experts believe that the trade environment will eventually stabilise.
“Now that exporters have a clearer view of the tariff landscape, we may see a gradual return to more predictable trade flows,” Lynch said.
See More: CSO, Economy, Irish Exports, Tariffs, US Tariffs
