On Wednesday, April 2nd, the US implemented a 20% tariff on imports from the EU — a significant action that is already impacting multiple industries.
The good news? Pharma products are off the tariff list—for now.
The bad news? There’s still a lot we don’t know about what’s next.
For those in Ireland’s pharma sector, it’s normal to feel both relief and worry, especially with so many US companies here. As Tánaiste Simon Harris said: “We have to expect more measures targeting pharma.”
So, what would that actually mean for Ireland — and for the 90,000 people working in and around pharma here?
Why Pharma Is So Critical to Ireland’s Economy
Pharmaceutical manufacturing isn’t just another sector in Ireland — it’s a cornerstone of the national economy. Here’s just how significant it is:
- In 2024 alone, Ireland exported €58 billion worth of pharmaceutical products to the United States.
- Total annual pharma exports now top €100 billion, making it one of the country’s largest industries (IDA Ireland).
- Products made in Ireland are shipped to over 100 countries, supporting global healthcare systems.
- Five of the world’s top ten blockbuster drugs are manufactured right here in Ireland.
- The U.S. is one of Ireland’s largest trading partners — 20% of Ireland’s goods exports go to the U.S.
- Of all exports to the U.S., a striking 61% are pharma or medical products (Deloitte).
In short, pharma is deeply embedded in Ireland’s trade, employment, and global reputation. Any disruption to this sector wouldn’t just impact Ireland — it would echo across global supply chains.
What’s at Stake for Ireland?
The biopharma industry is a major employer in Ireland, with a broad ripple effect on the national workforce. Here’s what that looks like:
- Around 50,000 people are directly employed in pharmaceutical and biopharma companies across the country
- Another 40,000+ jobs are supported indirectly through services, logistics, and suppliers
- Roughly 30,000 of these jobs are in U.S.-owned pharmaceutical firms — including household names like Pfizer, Eli Lilly, and Johnson & Johnson
So yes, talk of tariffs and shifting U.S. trade policy is understandably raising questions among workers. Will companies pull back investment? Could jobs be lost?
These concerns are valid — but the full picture offers a more reassuring outlook.
Why Pharma Jobs Are Safe — For Now
One of the most important things to understand about pharmaceutical manufacturing is this: it doesn’t operate on short timelines.
Even if a U.S. company were to consider relocating a site or shifting production away from Ireland, they couldn’t do it quickly. The time, cost, and regulatory burden involved in moving production — particularly of critical medicines — makes short-term disruption highly unlikely.
In other words, Irish pharma jobs are not only safe for now, but safe for years to come.
Relocating Isn’t Easy — It Takes Nearly a Decade
Building or relocating a pharmaceutical site isn’t like opening an office or warehouse. It involves strict regulation, technical complexity, and massive investment. Here’s a breakdown of the typical timeline:
- Site planning & investment approval – 1 to 2 years
- Facility design, construction, and equipment validation – 2 to 3 years
- Technology transfer and process qualification – 1 to 2 years
- FDA regulatory inspections and remediation (if needed) – 1 to 2 years
- Full-scale commercial manufacturing – up to 3 years
➡️ Total: 8–10 years from concept to production
This means that even if companies started planning today, new production facilities wouldn’t be operational until well into the 2030s. For now, Ireland remains essential to global supply.
Why Pharma Companies Stick with Ireland
Medicine manufacturing requires unwavering consistency, tight compliance, and global trust. That’s why companies continue to invest in Ireland — and why they’re unlikely to leave.
- Once a facility is built, it’s often part of a 10–20 year strategic plan
- Transferring production introduces huge regulatory and supply risks
- Delays or disruptions in medicine production could impact global health systems — something no company wants
In short, even if tariffs make headlines, Ireland remains the lowest-risk option for continued pharma production. U.S. companies know this — and their actions reflect it.
Ireland’s Global Reputation for Quality and Trust
Another reason Ireland stands out is its exceptional compliance track record. In pharmaceutical manufacturing, this is everything. Over the past five years, Ireland has received just one FDA 483 observation — an incredibly low figure compared to other major pharma hubs. (Source: FDA Inspection Database; analysis by Pharma Industry Ireland (PPI) & IDA Ireland). In contrast, regions such as India, China, and parts of Europe see dozens of 483s annually — highlighting the risk gap between Ireland and other markets.
Consistent Access to Highly Skilled Talent
Ireland also continues to deliver where many other countries are struggling — access to highly skilled talent.
- Our universities produce thousands of engineers, scientists, and QA/QC professionals each year
- Ongoing collaboration between academia and industry ensures training is aligned with real-world needs
- While other countries report growing skill shortages, Ireland maintains a robust and reliable talent pipeline
This combination of quality, trust, and talent gives Ireland a powerful long-term advantage in the global life sciences market.
What Could Happen in the Short Term?
While large-scale job cuts are unlikely, some short-term changes could emerge if trade tensions escalate:
- Companies may initiate hiring freezes or delay new job announcements
- Investment timelines could be stretched or re-evaluated
- Critical roles — such as QA, process engineering, validation, and compliance — will still be filled
- Internal restructuring and reskilling may take place to adapt to evolving needs
For professionals, this could be a valuable time to upskill or transition into high-demand areas within the sector.
Irish Pharma Is Built to Last
At the end of the day, Ireland’s pharmaceutical sector was built for long-term success, not short-term gain. Companies like Eli Lilly, Pfizer, and Johnson & Johnson have made multi-billion-euro investments in Ireland and US pharma leaders have reaffirmed Irish expansion plans. The infrastructure, talent, and trust built over decades won’t be undone by a single policy change.
The bottom line? While global politics may shift, Ireland’s reputation as a world-class pharma hub remains strong — and Irish pharma professionals can feel confident about the road ahead.
Read our previous blog: https://lscconnect.com/getting-more-from-your-resourcing-budget/ where we discussed practical strategies to help teams build resilience, reduce hiring delays, and control costs. In our recent post, Getting More from Your Resourcing Budget, we explore key insights for life sciences companies facing today’s challenges.