Ireland GDP Falls 1% as U.S. Tariffs Bite

Ireland's economy contracted by 1% in the second quarter of 2025, ending a period of robust growth that included a 7.4% expansion in the first quarter. The downturn was driven primarily by a slowdown in the multinational-dominated industrial sector after companies accelerated exports ahead of anticipated U.S. tariffs. The new 15% U.S. tariff on EU exports, established through an agreement between the U.S. and Brussels, poses a significant risk to Ireland's export-led economy, with nearly one-third of Irish exports sent to the U.S. Irish government officials have voiced concerns and are assessing the implications of the tariffs. Year-on-year GDP growth also slowed sharply, highlighting the impact of the cooling export sector. In response, the government plans to increase investment spending to offset economic uncertainty.