BDO Trade Update - April 2026

In light of the recent geopolitical developments, it is evident that Ireland’s economy is deeply exposed to global trade flows, and in recent years that exposure has become more consequential rather than less. Tariffs and geopolitics, once treated as separate considerations, are now tightly bound together, with trade increasingly deployed by countries as a strategic tool to secure growth, ensure security and enable access to critical resources. What has become clear over the past year, and particularly over the last 12 months, is that this is not a temporary disruption. The global trade system will not revert to the familiar, and the open markets and low tariff era is no longer in place.   

Trade Guide for Tariffs & Trade

US trade policies update

The period from the introduction of the Liberation Day tariffs in April 2025 has probably been the most challenging in recent history for Irish Exporters. 

The scale of Ireland’s exposure is stark. In 2025 the US was Irelands largest export market, with almost 43% of total exports going to the US, an increase of over 50% on 2024. While some of the uplift reflected stockpiling ahead of anticipated tariff changes in early 2025, the figures nonetheless underline a central truth: Ireland’s economic performance is heavily dependent on the US market. As a result, US trade policy now plays an outsized role in shaping Irish economic outcomes. 

Throughout 2025, many companies responded cautiously to this shifting environment. Strategic decisions were delayed, not through indecision but through uncertainty. There remained a sense that volatility might ease, or that political change could restore a degree of predictability. In the meantime, businesses focused on pragmatic, low-risk measures: reviewing tariff classifications, checking duty rates, refining customs valuations and, where possible, sharing additional costs with customers and distributors. 

While we would have entered 2026 hoping that some stability might ensue this has not turned out to be the case.  

Focusing on Trade issues in the last three months we have seen the crisis in Greenland potentially erupt into a further trade war, IEEPA tariffs ruled illegal, new Section 122 Tariffs introduced at a 10% rate on a temporary basis to replace IEEPA, ongoing challenges to the EU-US “Trade Agreement”, new Section 301 investigations specifically calling out Ireland, and now the April 2nd announcement on new S232 tariffs on certain Pharmaceuticals along with changes to the S232 duty charges on steel and aluminium derivatives.

Developments from Thursday 2nd April

On 2nd April President Trump announced two new measures under what are known as the S232 tariffs.


These affect exporters of the following: 

  • Pharmaceuticals: various new duty rates have been announced on branded Pharmaceuticals. Obviously this would be a big concern for Ireland considering the extent of our exports to the US. However as there are carve outs for those companies who have signed sales (MFN Pricing) agreements with the US Government or promised future investment in the US there should be limited impact on the big players in the industry. Those companies outside of this group will likely be hit by customs duties late in 2026 unless they secure agreement with the US authorities.

Steel and Aluminium products: The new announcement has changed the application of the S232 duties in relation to steel/aluminium and steel/aluminium derivatives I.e. those downstream products made substantially of steel or aluminium.


This has two impacts:

  • Essentially it looks like it will increase the duty cost. This has been a complicated calculation to date, but at a high level for identified derivatives 50% duty was applied on the Steel content and the EU reciprocal rate was applied to the non steel content. The new proposal applies a 25% duty to the full import value instead (albeit products with under 15% steel content will not be subject to the higher S232 tariffs).
  • For products made fully of steel (essentially chapter 72/73 products) the value for customs purposes is to be the final sales value to the US customer. Although it is uncertain how this will work.


An additional question is whether this will affect the implementation of the EU-US deal which for example has a sunrise clause preventing the introduction of the deal if tariffs on these products are not reduced to 15%.


What steps can your business take now?

Irish Businesses must now operate on the assumption that instability will be permanent. The slightly over-used attributes of resilience and agility have become essential board-level attributes rather than operational buzzwords. The challenge is to translate those qualities into practical, structured action. 

 

The first requirement for businesses is clarity

  • Businesses need to determine which of their products are exposed to tariffs, how those tariffs apply and what the real cost implications are. 
  • This involves firstly confirming tariff classifications and then verifying origin rules.
  • It is also important to ensure that inter-company pricing structures are both accurate and tax-compliant. 
  • Equally, too often companies discover discrepancies between what they believe they are paying and what is actually recorded in customs and ERP systems.
  • Lastly we often see mis-understanding on contract terms and who the responsibility for duties on imports lie with. 


Assessment and planning

Companies also need to be up to speed in assessing and planning for potential changes in reciprocal or sector-specific measures.  For example assessing the impact of the new tariff announcements on pharmaceuticals and changes to the application of tariffs on steel and aluminium derivatives. 

These potential risks are part of a companies required scenario planning for the future and keeping track of these, along with all other potential trade measures, becomes an essential part of managing your profit forecasts. Once that baseline is established, attention can turn to mitigation.

 

Supply Chain review

There remains scope for lawful, non-disruptive measures that reduce duty exposure without reshaping entire supply chains. These may again include reclassification, origin planning or valuation techniques such as first-sale structures or unbundling. This also requires closer integration between customs, tax and transfer-pricing functions to avoid unintended consequences on your tax liabilities. 

 

Trade Strategy Review

Beyond the above outlined immediate steps lies the more difficult task of strategic adjustment. Medium to long-term planning now needs to account for a world in which trade relationships can contract or expand rapidly, sometimes for political rather than economic reasons. This means diversifying export markets where feasible, strengthening supply-chain resilience, and developing clear cost-sharing frameworks with importers and distributors.  


What next for the future of Irish Trade?

For Ireland, recalibration must be approached with balance. The United States will remain our largest and most important export market for the foreseeable future, and Ireland continues to host a significant base of US multinationals. Managing that relationship is therefore essential.

At the same time, diversification is no longer optional. The European Union’s efforts to deepen trade links elsewhere - including with Canada, Mercosur, India and Australia - reflect a recognition that resilience lies in breadth as much as depth. As European Commission president Ursula von der Leyen has noted, the agreement with India alone would open access to a market of two billion people, representing almost a quarter of global GDP. Assessing potential growth in these markets in terms of purchases and sales should be factored into growth and supply chain security decisions. 

The central message for Irish businesses is not one of alarm, but of adaptation. Global trade has entered a more fragmented, unstable and contested phase, and success will depend on how effectively companies understand, manage and de-risk their supply chains. In that context, preparation is no longer a defensive exercise -It is a prerequisite.


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BDO Global Trade Services

As Global Trade becomes more complex, and more subject to risk, we can advise on your trade implications in a Geo-Political context, assess the Risk Landscape and provide pro-active duty planning, ensuring security of supply and support in accessing new markets. In addition we can provide Board Level briefings in order to support and advise in this new environment.Be sure to contact us for further information or to arrange a consultation.
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This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO to discuss these matters in the context of your particular circumstances. BDO, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO is authorised by the Institute of Chartered Accountants in Ireland to carry on investment business. BDO, a partnership established under Irish Law, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO International network and for each of the BDO Member Firms. Copyright © April 2026 BDO Ireland. All rights reserved. Published in Ireland.