Budget 2026: Navigating tariffs and uncertainty

Background

With continued developments in US trade policy, please see this week’s key updates in our latest round-up on tariffs, global tax and beyond.

The week in summary 

Budget 2026

In the week Budget 2026 has been unveiled, it is notable that US tariffs have taken somewhat of a back seat to other considerations within the Irish tax landscape. However, Minister for Finance Paschal Donohoe still addressed the uncertain times which these tariffs have ushered in for the country in his opening speech of Budget 2026, stating:  

"The certainties that have underpinned our transformation as a country are now being called into question. Uncertainty is the defining feature of the economy of the world this year. While the international order has been shifting for over a decade, this year saw greater fragmentation as widespread tariffs were introduced. The world has been pulling away from its near-universal commitment to free and open trade, a commitment that benefited many. 

Our fortunes are connected to the world around us. Peace and partnership have been the drivers of our economic and social progress in recent years. Ireland will always be a global voice for, and champion of, co-operation and trade.  

It is regrettable that tariffs were introduced but the recent EU-US trade agreement is still a better outcome than the alternative of higher tariffs and, ultimately, even greater uncertainty. Nonetheless, tariffs will, of course, impact growth in the coming years."

The lack of specific actions included in Budget 2026, taken in response to the imposition of tariffs by the US, is unsurprising given customs is an EU competency and there is relatively little which Ireland can unilaterally do to offset the impact of these measures.  

A key support for Irish businesses which are impacted by the tariffs continues to be the grants which are offered by Enterprise Ireland with the agency responsible for the development and growth of Irish enterprises in world markets, having announced a range of new grants ranging from €35,000 to €150,000 to allow companies carry out market research or new market validation.   

The week in summary 

Outstanding tariff issues  

Notwithstanding the significant movement which has occurred in respect of the implementation of tariffs over the last few weeks and months, a number of measures, on both the US and EU side, remain outstanding, as follows:  

• Imposition of 100% Pharmaceutical Tariff 
• Section 232 Investigations in the following sectors:  
  • Pharmaceuticals  
  • Semiconductors  
  • Trucks  
  • Critical Minerals  
  • Commercial Aircraft & Jet Engines  
  • PPE, Medical Consumables and Medical Equipment, including Medical Devices  
• Implementation of EU Regulations to reduce certain US origin goods to 0% tariff  

EU proposal on steel and aluminium 

The European Commission is proposing a revision to the tariff rate, from 25% to 50%, for certain steel products which are imported to the EU out-of-quota. Additionally, tariff-free import quotas will be cut by nearly half. This proposal stems from the worsening condition of the EU’s domestic steel industry and the structural overcapacity in the global steel industry.  

This proposal also includes a new “melt and pour” rule for determining the true country of origin. This new rule looks to identify the country where steel or iron is first produced in liquid form and cast into its primary solid state (e.g. slabs, billets, ingots). Importers will be required to provide proof of origin, such as a Mill Test Certificate, confirming the country of melt and pour.

We’re here to help you

Keeping up to date with US trade policies, trade agreements and new and existing tariff reviews which may lead to further tariff measures is crucial to assessing the risk to your supply chain and the impact these tariffs may have. Understanding your product portfolio and the impact that tariffs may have on your imports is an important first step. We are here to support your business with this analysis and navigating these choppy waters.