In December’s edition of Finance Dublin’s The Irish Tax Monitor Carol Lynch, Tax Partner & Head of Customs and International Trade Services, highlights the potential economic risks to Ireland from U.S. trade policies under President-Elect Donald Trump, particularly in the pharmaceutical and chemical sectors that account for 80% of Ireland’s exports to the U.S.. Carol discusses the dependency of Irish exports on the U.S. market, which have increased over 2024 and now represent over 30% of total exports. She outlines concerns about proposed tariffs of up to 20% on EU goods and targeted trade measures under the leadership of Howard Lutnick as Secretary of Commerce. The article emphasises the importance of Irish companies conducting scenario planning and risk analyses to address these threats and prepare for shifts in global trade dynamics in 2025. Carol Lynch suggests measures such as exploring supply chain alternatives, ensuring compliance with international agreements like the WTO Pharma Agreement, and keeping up to date with changing origin rules in order to mitigate risks effectively.

In addition, Lee Kavanagh, Manager, Financial Services Tax, reviews the Irish government’s Funds Sector 2030 report, which proposes 42 recommendations to modernise Ireland’s funds sector framework and stimulate growth. Lee highlights the focus on encouraging domestic retail investment in Irish-domiciled funds through reforms such as removing the 8-year deemed disposal rule to simplify long-term investment and aligning tax rates with international standards. The report also suggests eliminating the 1% life assurance levy and consolidating tax rules for offshore funds to enhance clarity and fairness in taxation. Lee underscores the significance of these measures in fostering retail investment in Ireland, making investment options more attractive, and providing a robust foundation for sustainable growth in the financial services sector.

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