Ireland makes billions from weight-loss drugs and risks US sanctions
Eli Lilly & Co. bulks up Irish operations in obesity drug production push (Illustrative photo: Getty Images)
US President Donald Trump is outraged by Ireland’s massive trade surplus, largely driven by pharmaceutical exports, including weight-loss drugs, and is preparing tough measures, Bloomberg reports.
Ireland has become one of the biggest beneficiaries of international investment thanks to its low tax rates and EU membership. The country hosts the European headquarters of Apple, Meta, Intel, and major pharmaceutical plants, including Eli Lilly & Co., which produces key ingredients for the blockbuster weight-loss drugs Mounjaro and Zepbound.
However, the surge in trade has drawn criticism from Washington. "This beautiful island of five million people controls the entire US pharmaceutical industry," Trump said during a meeting with Irish Prime Minister Micheál Martin.
He added that he wants to "even out" trade relations, hinting at possible sanctions. According to Ireland’s statistics office, the country exported €72.6 billion worth of goods to the US in 2024, with a trade surplus of €50.1 billion.
Ireland tries to avoid consequences
Dublin is preparing a diplomatic push. Ahead of St. Patrick’s Day, Irish officials are meeting with their US counterparts to highlight the mutual economic benefits.
"We have to gently remind key decision-makers in the US that the economic relationship is now a two-way street," said former Amazon Web Services Ireland head Mike Beary.
Still, the threat remains: the US could impose 200% tariffs on EU alcohol, hitting Irish whiskey exports. Economist Dan O’Brien warns that even a 10% tariff would have a "strongly negative impact" on Ireland’s economy, as the country is the largest per capita goods exporter to the US in Europe.
If Washington introduces tariffs on pharmaceuticals or other goods, Ireland could face serious economic consequences.
