US exports show continued decline in February but unlikely to cause undue concern - CSO

 
Carol Lynch, Partner & Head of Customs and International Trade Services, was featured in Business Post with her commentary on latest update from CSO.
The latest CSO statistics show exports continue to decline, both compared to January 2026 and when comparing February 2026 and February 2025. This was expected, however, primarily driven by an ongoing reduction in pharmaceutical exports to the US. The US, nevertheless, remains our top export partner with 25% of Ireland’s exports going to the American market. Therefore, changes in US Trade policy continue to have a disproportionate effect on Irish Exporters. 
Overall, Ireland exported 24.7% (€3.9 billion) to the US in February 2026, with 17.7% (€2.8 billion) to NL and 8.7% (€1.4 billion) to GB.

READ CAROLS FULL COMMENTARY

Commenting on today’s figures, Carol Lynch, Head of Customs and International Trade Services at BDO, said that pharmaceutical exports to the US continued to decline in February 2026 continuing the trend over the last few months, but they are unlikely to prompt undue concern.

While the drops are significant when compared with the earlier parts of 2025, they are unlikely to be of concern. Most reports have indicated quite high stockpiling in the US, particularly of our largest pharmaceutical exports in the weight loss sector


The Central Bank in its recent economic forecast also estimated that surplus inventories could last until Q3 2026, therefore continuing this trend for the next few months. Added to this is continuing global demand and continued investment in Ireland and therefore growth in exports should pick up from the second half of the year.


The largest multinational companies in the pharmaceutical sector will also have been relatively insulated from the results of the S232 pharmaceutical investigation earlier this month where continued exemption from tariffs was provided to those with both preferable sales arrangements (MFN agreements) with the US and where promises of US investment have been agreed. 


Secondly, however, the statistics make for interesting reading in terms of our exports outside of pharmaceuticals. Exports in the food, machinery and miscellaneous sector are doing well in terms of non-US exports where many have suffered tariffs through 2025. 


In particular, companies exporting machinery made of steel will, for some of their products, be hit with duties of now up to 50% along with an unfavourable new method for calculating those duties. This has now shifted for many products to calculating duty on the full value of the product rather than the steel content. 


ROW sales should however grow going forward as the EU makes a concerted effort to open markets in Mercosur, India and Australia.


Also important is to look at our GB/NI sales. GB remains one of our top three export markets, with exports increasing €257.9m in February.  Food exporters will be hopeful of a successful outcome to the current EU-US negotiations into removing SPS checks and Health Certs on food products.


Agricultural produce exports grew from €11bn in 2024 to €12bn in 2025. Key markets were the UK (€4.43bn) in 2024, (€4.97bn) in 2025 and the EU, (€4.63bn) in 2024, (€5.21bn) in 2025. Food and drink exports comprise 8% of total Irish exports.


The February 2026 figures predate the start of the Iran war. Future monthly data will be informative in terms of whether increased input costs (diesel, etc) and higher global inflation impact on exports.


All in all, however as we move into 2026 and as indicated in our recent BDO Global Quarterly Trade report, global trade in early 2026 continues to be shaped by legal uncertainty, geopolitical tensions and structural shifts in supply chains. In the near term, a convergence of geopolitical risk, industrial policy and supply-chain reconfiguration is likely to define the direction of travel, with instability in the Middle East acting as a catalyst.


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