Nearly three-quarters (72%) of Irish businesses have not taken steps to mitigate the potential impact of trade tariffs from the US despite ongoing uncertainty, ACCA Ireland has found.
The survey was conducted immediately prior to the 90-day pause on tariffs announced by US President Donald Trump last week.
One in six (15%) businesses had undertaken a risk analysis prior to the postponement, while 7% had started to look at new markets due to the potential tariffs.
The majority of companies were confident that the initial tariff posed by the Trump administration wouldn't proceed as planned, with 60% believing that President Trump would seek to negotiate with the EU, as opposed to implementing the punitive 20% tariff.
From the outset, almost 70% of businesses did not want immediate responsive tariffs. Instead, they wanted the EU to engage and negotiate a deal with the US.
More than a third (36%) of those surveyed thought that government supports would be required if the tariffs were to proceed, with 43% seeking clearer guidance and advice from the government and 38% of businesses seeking assistance to explore new markets.
The potential impact of tariffs has created uncertainty too, as just 41% of businesses believe the Irish economy will grow over the next 12 months, reflective of global attitudes as found in ACCA’s Global Economic Conditions Survey.
"These findings not only underline the vulnerability of many Irish businesses to the impact and uncertainty that could be caused by potential US tariffs on exports, but they shine a light on the need for businesses to scenario plan to support operational continuity and growth," said Stephen Noonan, head of ACCA Ireland.
"President Trump’s 90 day pause provides businesses with some breathing space to consider their options and plan for a range of scenarios with government, trade and professional bodies playing an important role to help them plot their specific course.
“On the international stage with a dip in economic confidence globally, it is vital that there are calm heads both in Government and within the EU ensuring that we can safely navigate this period of deep uncertainty.”
*This article was originally published on BusinessPlus.ie.
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