Tariffs set to be imposed by US President Donald Trump on EU food and drink exports in April pose a significant threat to Ireland’s dairy and grain sectors, the IFA has said.

IFA president Francie Gorman said the US market is an important outlet and accounts for circa 11% of Ireland’s total food and drink exports, with tariffs set to have a “serious impact”.

The scale of the tariffs being talked about would have a serious impact on what we have achieved

“We have succeeded in gaining a foothold in what is a large market,” he said.

“Not only that, but we have done it with some very strong brands that are built on the foundation of farmers producing quality material for processing.

“The scale of the tariffs being talked about would have a serious impact on what we have achieved,” Gorman said.

These comments come following analysis by IFA chief economist Tadhg Buckley, which shows Ireland exported approximately €1.9bn worth of food and drink products to the US in 2024.

Within the €1.9bn figure, dairy accounts for €830m and drinks, predominantly whiskey, stands at €900m. This accounts for 91% of Irish exports to the US.

Ireland also exports pigmeat (€23m), beef (€8.8m) and seafood (€3.8m) to the US.

Kerrygold

Buckley highlighted the importance of the Kerrygold brand in the US.

“Kerrygold is now the second-best-selling butter brand in the US, where we sent almost €500m worth of product in 2024,” he said.

Global dairy markets are in relatively good health at the moment

“The market accounts for about 7.5% of our total dairy exports. That helps to underpin the milk price paid to Irish dairy farmers.

“Global dairy markets are in relatively good health at the moment, but the introduction of tariffs could have far-reaching impacts as we hit the peak supply period in Ireland.

“There are also real concerns for the grain sector if the drinks sector is hit,” Buckley said.

The danger is that a trade war will hit the value of our exports

On the EU-US relationship for food and drink, there is a trade surplus on the EU side of €17.6bn, which is actually greater, proportionately, than the overall trade surplus for all goods.

Buckley said there will be a good deal of apprehension ahead of the 2 April date set by Trump for the tariffs’ introduction.

“The danger is that a trade war will hit the value of our exports. Within the EU, our export profile as a proportion of what we produce is far greater than most other countries,” he added.