Sligo-Leitrim TD warns of US Tariff’s impact on Northwest economy

A Sligo-Leitrim TD has raised concerns for the Northwest region following US President Donald Trump’s April 2 announcement of tariffs on the European Union.

Deputy Frank Feighan of Fine Gael described the news as a “nervous week for many exporters in Ireland,” highlighting the fears expressed by businesses in food, drink, and pharmaceutical sectors about potential job losses, short-term working and economic slowdown.

The European Union is set to face a 20 percent tariff on April 9, sparking worries among many Irish industries, particularly in food, drink and pharmaceuticals.

Just three weeks ago, Pat Rigney, founder of the renowned Shed Distillery, warned on Morning Ireland that escalating EU-US tensions under President Trump could threaten a “critical” market for Irish whiskey.

“The Shed distillery in Drumshanbo employs more than 100 people, they export 35 percent of their product to the USA,” Deputy Feighan said.

“This is a growing market thanks to excellent work of Pat Rigney and his marketing team both at home and abroad,” Deputy Feighan said.

He added that the 20 percent tariffs pose a threat to sales, profit margins, and market share in the US.

Deputy Feighan said he was “heartened” to see the Drumshanbo business actively negotiating with US distributors to stabilise prices, though this would mean a reduced profit margin.

“If this tariff war escalates and this is increased then unfortunately that will lead to a closed market for the Leitrim produced spirits,” he warned.

Leitrim's whiskey industry at risk as US-EU tensions rise

Pat Rigney, founder of The Shed Distillery in Drumshanbo, expressed concerns on Morning Ireland last Friday about the potential impact of US tariffs on the Irish whiskey industry.

Speaking in Brussels, Agriculture Minister Martin Heydon expressed concerns that EU tariffs on bourbon could hurt Europe more than the US.

Trade in spirits between the EU and US has been tariff free since 1997.

“We export a lot more alcohol and spirits and wine from Europe than we import bourbon. So, it would be counterproductive to have something on a list that would hurt Europe more than would hurt America.”

Beyond food and drink, Ireland’s pharmaceutical industry is also facing uncertainty. With over 300 pharma companies employing over 50,000 people nationwide, the sector is a major employer in Leitrim.

MedTech, the county’s largest employer, accounts for 19 percent of jobs, followed by the chemicals and pharma sectors, which together make up one-third of all industrial employment.

Deputy Feighan emphasised the importance of pharmaceutical jobs in the region: “As well as manufacturing plants operating in the county such as VistaMed, there is considerable commuting from the county, especially from North Leitrim into Sligo.”

As of Thursday morning, April 3, there has been no official word from the White House on tariffs for pharmaceuticals. Deputy Feighan urged the EU to negotiate with the Trump administration to prevent a trade war.

The Northwest region has already been downgraded by the European Commission from a ‘More Developed Region’ to a ‘Transition Region,’ reflecting its economic decline.

Feighan warned that the Northwest will suffer the most if the tariff war ‘takes off.’

“I call on the government through the EU to engage with the Trump administration, seek common ground and avoid a tariff that will only lead to economic stagnation and huge employment losses especially in the region that can least afford to take it,” concluded Deputy Feighan.

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