Trumps tariffs leave Longford companies counting the costs

Longford companies are bracing themselves for a bumpy future as the cost of exporting to America dramatically rose following US government actions.

On April 2, 2025, US President Donald Trump declared “Liberation Day”, with an executive order issued to tariff all imports to the United States at a minimum of ten percent. For 57 nations and entities that tariff comes in at a higher rate ranging from 11% to 50%.

The announcement means that goods imported from all countries into the US from April 5, 2025 will be subject to a baseline tariff of 10%, while for the selected territories, including the EU, higher “reciprocal tariff” rates will apply from April 9 onwards.

The EU is earmarked for a 20% fee to export to America. The levies wiped out nearly $6 trillion in value from US stocks last week.

With half of all the Irish whiskey in the world sold in the US, and alcohol identified as one of the goods to attract high tariffs, Longford's Lough Ree Distillery is keeping a close eye on the news to see how developments could affect their business.

Since opening their micro distillery in July 2018 brothers, Peter and Michael Clancy, and their sister, Sheila Mullen, have enjoyed a growth rate of between 25% and 50%.

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The business has extended to markets in the UK, France, Austria, Germany, Italy, Poland, Estonia and Ukraine, but the US is a developing market.

“It's probably a bit early to say because the discussions are still open,” Peter Clancy, CEO and co-founder of Lough Ree Distillery, said of the situation.

Peter believes a 20% hike in the cost to consumers will be difficult, “We don't have a massive volume currently going to the States, but that could change. If it does, then it would have a fairly serious impact.

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“We're not as reliant on the US market, as some of our peers. That's to our benefit. But it's a no win situation.”

Ireland, France and Italy have been lobbying to have US bourbon taken off the list given that Mr Trump threatened to hit European wine and spirits with a 200% tariff.

The Lough Ree Distillery CEO says the tariffs may not be all doom and gloom: “Within all this is opportunity, you have to look for opportunity elsewhere and be open to that. We're looking at other markets, particularly the Asian markets where we've had some success.

“The beauty of us being a small, nimble business, is that we can do that. We can pivot, for bigger businesses that is more of a challenge.”

Another Longford company counting the cost of the impending Donald Trump tariffs is Butler Manufacturing Service on the Strokestown Road, Longford.

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Managing director Seamus Butler says the imposition of high tariffs will have an immediate impact on the business. “Since 2022 we've been chasing to enter the US market. We finally got an order, which is cumulatively over half a million euros.

“That's proportionally a lot of money to us. Now it's up in the air, because nobody could have allowed for a 20% additional cost.”

Seamus is optimistic negotiations may pay a dividend. “What we've learned, if anything, about this Trump presidency is that he's a transactional person. If he can see gains, he'll talk that out.”

The loss of such a contract could present challenges. “We do have other export markets, but the US was something we could build on. The big problem with the United States is that each State has different regulations for wastewater.

“The distributor we've appointed has taken on a consultant company specialising in getting permits. Our technology is unique to the States.

“It's way ahead of their indigenous technology. It could prove a very lucrative market if we can iron out these issues. Business is all about solving problems.”

Longford businesses are very much at a point where “wait and see” is the only option. The difficulty for these companies, and many other Ireland based companies, is that negotiations are coordinated though the EU and the European Commission is purported to be targeting tech services, intellectual property, banking and public procurement in retaliation.