Surge in Irish Pharma Exports to U.S. Amid Tariff Fears

Irish pharmaceutical exports to the U.S. soared by over 450% in February, indicating stockpiling by U.S. drugmakers in anticipation of potential tariffs. The U.S. is investigating European pharma imports as part of tariff imposition strategies, particularly from Ireland, a key drug manufacturing hub.

The Irish pharmaceutical sector has experienced a remarkable surge in exports to the United States, with figures jumping over 450% year-on-year in February, according to recent data released on Tuesday. This marks the second consecutive month of increased export activity, hinting that U.S. drugmakers are amassing medicines ahead of possible tariffs.

The U.S. administration announced a probe into pharmaceutical imports on Monday, signaling an impending tariff imposition that President Donald Trump plans to add to existing duties on various goods and partners. Trump's administration has repeatedly criticized European, specifically Irish, drug production, targeting these as issues to address through tariffs. Ireland hosts production facilities for over a dozen major global drugmakers, with many products destined for the U.S. market.

In January, Irish medicine exports to the U.S. grew by 130% to €9.4 billion and further escalated to €10.5 billion in February, compared to €1.9 billion in the same period last year, as per Ireland's Central Statistics Office. Some pharmaceutical companies resorted to sending larger quantities by air to the U.S. amid looming tariff threats, sources told Reuters. Meanwhile, Ireland's Central Bank attributed the ongoing rise in pharma exports since last July partially to high-demand weight-loss drugs but noted that stockpiling could be driving recent increases. Overall, a 34% hike in all goods exports from Ireland to the U.S. last year elevated the U.S. trade deficit with Ireland to a record €50 billion.

(With inputs from agencies.)