Irish Consumer Confidence Rises Slightly After EU-US Tariff Deal Amid Cost Concerns

Irish consumer confidence experienced a slight improvement in August 2025, rising to 61.1 from 59.1 in July, as the Trump administration’s tariff deal with the European Union helped reduce economic uncertainty. The US-EU trade agreement imposed a 15% tariff on most EU goods imported by the US, which, while expected to curb economic growth by about 1.5 percentage points over five years, fell short of more severe feared scenarios, making the impact manageable for Ireland. However, despite this uptick, consumer sentiment remains significantly below levels recorded a year earlier and the long-term average, with many households continuing to feel pressure from rising grocery prices and utility bills. The survey also indicated a weaker economic outlook for the next 12 months, with consumers anticipating a materially weaker economy ahead. Economist Austin Hughes noted that while the deal helped ease some concerns, living costs remain a persistent challenge, and the government’s National Development Plan may have provided some reassurance on infrastructure and housing issues. The overall sentiment reflects cautious optimism tempered by ongoing cost-of-living worries and expectations of slower growth.