Monthly export figures down 26% in June - CSO


Carol Lynch, Partner & Head of Customs and International Trade Services, was featured in RTÉ News with her commentary on latest update from CSO.

Read Carol's full commentary

 

New CSO data shows Irish exports fell 26.3% in June compared with May, driven by a 59.6% drop in goods to the US, now valued at €4.4 billion. On an annual basis, exports to the US were down 23.4%.

Overall exports rose 4.8% year-on-year to €17.5 billion, with the US, the Netherlands and Belgium as Ireland’s top partners. Exports to Great Britain increased 12.8% to €1.24 billion.

Medical & Pharmaceutical Products exports grew 8.9% to €7.3 billion, while Organic Chemicals fell 29.9% to €1.8 billion.

Carol Lynch, Head of Customs and International Trade Services at BDO, noted the US remains Ireland’s largest trading partner, but much of the decline was in organic chemicals. She added that medical and pharmaceutical exports to the US rose nearly 9% year-on-year.

She also highlighted the ongoing US Section 232 investigation, which will determine whether EU pharmaceuticals face a 15% tariff ceiling, a lower rate, or potentially higher rates of up to 150%–250%.

Read the full article on RTÉ News and additional coverage in The Irish Examiner and The Irish Times.

It looks like exports to the US are normalising as tariffs kick in and following the significant exports and stock piling we have seen in the last few month. This 0% is expected to be adjusted this month with the results of the US S232 investigation. The question then will be whether EU Pharma will be subject to the now standard EU rate of 15%, or whether it will be lower or alternatively if higher will the EU cap of 15% apply? The EU certainly expects the latter.

Carol LynchPartner and Head of Customs & International Trade Services, BDO Ireland

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