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New US tariffs are increasing costs and complexity for global trade. What do the latest measures mean for Irish businesses?
In brief
The latest announcements from the United States Trade Representative (USTR) means tariffs are once again at the top of corporate agendas. This is a sharp reminder that trade policy is one of the most powerful forces influencing business decisions, supply chains and investment plans around the world.
On 24 July 2026, the US introduced new tariffs under Section 301 of the Trade Act of 1974 following investigations into 60 economies, including the European Union. Additional duties of either 10% or 12.5% now apply to most imports from the affected jurisdictions. The timing is deliberate with the new measures arriving just as the temporary Section 122 emergency tariffs reach their expiry date.
Aidan Meagher, EY Ireland Partner and Co-Head of Geopolitical Strategy, believes this reinforces the message that tariffs will continue to be a critical factor for companies importing product into the US.
As expected, the US administration has introduced new tariffs under Section 301 as it seeks to rebuild the tariff wall that was due to expire with the ending of the Section 122 emergency tariffs. Section 301 tariffs have been used by previous US administrations and while they are expected to be legally tested, they appear to be legally durable.
For businesses, the headline rates are just one issue. The bigger challenge is the growing complexity of global trade. Different tariff regimes operate under different legal authorities. Some products fall within sector-specific measures. Others qualify for exclusions, carve-outs or tariff-rate quotas. Existing Section 232 tariffs, which affect sectors including steel, aluminium and certain pharmaceutical products, continue to operate under separate rules, while the new Section 301 measures follow their own framework. Understanding how products are treated within this increasingly complex landscape is critical for assessing tariff exposure and compliance obligations. Many organisations spent years building smart supply chains around efficiency, scale and access to global markets. Historically, for organisations importing product into the US, tariffs were not a significant factor around supply chain efficiency as many products benefited from reduced or zero tariff rates prior to President Trump's second term.
Today, trade policy around regulatory requirements, geopolitical developments, industrial policy and market access considerations all now influence sourcing decisions, investment plans and operating models.
For the European Union, there may be some comfort that the latest measures appear broadly consistent with the existing EU-US trade framework. Products already covered by separate sector-specific arrangements continue, for now, to be treated through those channels, helping to avoid unpleasant surprises for many exporters.
Irrespective, the operational implications for business are considerable. Leadership teams will need to understand where products, components and raw materials originate, how goods are classified and whether exclusions or exemptions apply. Even within a single company, outcomes may vary by product line, supplier network and market.
These questions now extend well beyond customs and tax functions to directly influence costs, competitiveness and market access.
For Ireland, the stakes are high. Many Irish businesses operate within deeply interconnected global supply networks. Pharmaceutical companies source ingredients and materials across multiple regions. Medical technology manufacturers depend on international ecosystems. Advanced manufacturing companies move components across borders throughout the production process. Food and drink producers balance complex sourcing relationships with export ambitions. Changes in trade policy can influence each stage of those value chains and most importantly impact on profitability putting greater pressure on cost competitiveness and reducing capacity for future investment.
Questions around supplier concentration, sourcing resilience, tariff exposure and market diversification matter now more than ever. New tariff measures can alter cost structures quickly and influence commercial decision-making across supply chains and export markets.
The latest US measures demonstrate how quickly trade policy can affect costs, supply chains and investment decisions. For businesses, understanding those implications is a vital part of day-to-day commercial planning.
The EY Geopolitical Strategy Team supports organisations in understanding tariff exposure, assessing supply chain impacts and identifying practical actions to respond to a quickly changing trade environment.
New US tariffs introduced under Section 301 are bringing trade policy into sharp focus for businesses importing into the US. For Irish companies, the implications extend across supply chains, sourcing, costs and investment decisions. Understanding tariff exposure, product classifications and supply chain dependencies will be essential for effective business planning.
