Surge in Irish exports to the US drives €12bn trade surplus
The US was both the largest goods export and import market for Ireland in the month, accounting for almost 50% of total goods exported and almost 20% of total good imports. Picture: David Creedon
Irish exports soared by more than a quarter at the start of this year, rising by over 26% to €23m in January compared to the previous month.
New figures released by the Central Statistics Office (CSO) on Tuesday showed a rise in pharma exports drove a more than €12bn goods trade surplus in January, as imports fell marginally by 2.6% in the period.
Exports of medical and pharmaceutical products rose by 68% to €14.8bn, with this representing 61% of total exports in January.
The US was both the largest goods export and import market for Ireland in the month, accounting for almost 50% of total goods exported and almost 20% of total good imports.
Exports to the US grew by 81% in January, the CSO added.
"This was likely driven by companies seeking to export ahead of potential tariffs on EU products," said Carol Lynch, Head of Customs and International Trade Services at BDO.
"Exports to the US in January 2025 surged by 81% compared to January 2024, with the pharmaceutical and chemical sectors accounting for approximately €5 billion of the increase."
According to analysis by Bloomberg Economics, Ireland is just behind Mexico and Vietnam and on par with Germany in terms of its trade surplus with the US.
Just last month, Central Bank of Ireland governor, Gabriel Makhlouf, warned that downside risks to the Irish economic outlook have increased as its over-exposure to escalating global trade tensions remains high.
Meanwhile, the value of exports to Great Britain declined by 22% annually, which was primarily concentrated in the chemicals and pharmaceuticals sector.
However, offsetting this was a significant increase in chemical and pharmaceutical exports to the EU, which rose by more than €500m over the same period.
In January, total exports to the EU rose by almost 11% to €7.9bn, with the Netherlands being the largest EU market, followed by Belgium and Germany.
In the agri-food sector, exports to Great Britain have grew by €29m year-on-year, which Ms Lynch called a "positive sign for the domestic economy."
"With international trade conditions evolving rapidly, particularly amid potential US tariffs on EU goods, Irish traders must act swiftly to adapt.
"Those exporting to the US market, in particular, should immediately reassess their strategies to mitigate risks and capitalise on opportunities in the changing landscape."
"Companies now need to act swiftly to ensure their products are exported prior to the imposition of tariffs."
