Trump’s return: implications for US investment in Ireland

With Donald Trump’s return to the White House in January 2025, global investors and policymakers are evaluating the potential effects of his administration’s economic policies.

As a strategic hub for US FDI in Europe, Ireland must consider both the risks and opportunities that a second Trump presidency may present.

While the “America First” doctrine suggests a shift towards economic nationalism, history indicates that Ireland’s unique positioning within the European market, coupled with its longstanding ties to US multinational corporations, may serve as a stabilising force in maintaining strong investment flows.

Ireland: a resilient hub for US investment amidst political shifts

Ireland has long been a preferred destination for US companies seeking access to the EU. As of 2024, US firms employ over 190,000 people in Ireland, with investments spanning technology, pharmaceuticals, financial services and manufacturing. Despite global economic uncertainties, the resilience of this investment relationship is underpinned by several key factors:

• Ireland’s EU membership: while the UK’s exit from the European Union created complications for international investors, Ireland remains an English-speaking gateway to the EU’s single market, a critical advantage for US corporations
• Stable regulatory and tax environment: despite OECD-led reforms on global tax rates, Ireland remains one of the most attractive jurisdictions for corporate headquarters, research and development, and intellectual property management
• Skilled workforce: Ireland continues to offer a deep talent pool, particularly in STEM fields, which is crucial for industries such as life sciences, artificial intelligence and fintech

Potential challenges under Trump 2.0

While the fundamentals supporting US investment in Ireland remain strong, a second Trump presidency introduces several areas of concern.

In his first term, President Trump introduced significant corporate tax cuts through the Tax Cuts and Jobs Act of 2017, which encouraged US companies to repatriate overseas profits. If similar policies are pursued in his second term, Ireland may face renewed pressure from US corporations weighing the benefits of maintaining European operations versus bringing capital and jobs back to the United States.

Trump’s previous administration was marked by a protectionist trade stance, including the imposition of tariffs on key trade partners. Should tensions between the US and the EU escalate, multinational firms may need to adjust supply chains and operational strategies which could influence investment decisions in Ireland.

Ireland benefits from a strong transatlantic relationship and its status as a key investment hub. However, Trump’s past rhetoric towards the EU — particularly regarding trade imbalances and defence contributions — raises concerns about the stability of US-EU economic relations. Any deterioration in this relationship could indirectly affect Ireland’s investment appeal.

Opportunities for Ireland amid global realignment

Despite these uncertainties, Ireland may find itself well-positioned to capitalise on the shifting global investment landscape.

Political unpredictability in the US may encourage corporations to diversify risk by reinforcing their presence in stable jurisdictions. Ireland’s transparent legal system, business-friendly environment and geopolitical neutrality make it an attractive destination.

If trade tensions between the US and the EU escalate, multinationals that require access to Europe may strengthen their Irish operations to maintain seamless market access.

US investment in pharmaceuticals, medical technology, and digital services continues to thrive, with Ireland hosting major operations for firms such as Pfizer, Johnson & Johnson and Meta. These sectors are unlikely to see major disruption under a second Trump administration.

A pragmatic outlook

While Trump’s return to power brings certain risks — particularly around corporate tax policy and US-EU relations — there is no immediate existential threat to US investment in Ireland. The long-established legal, economic and cultural ties between the two nations suggest that investment flows will largely remain intact, even as the global trade environment evolves.

How Ogier can help

Our Irish Corporate law team can assist global investors in navigating the potential impacts of Trump’s administration, ensuring strategic investment decisions and maximising opportunities in Ireland amidst evolving economic policies.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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