During an address outside the White House yesterday, US President Donald Trump referred to 2 April 2025 as “one of the most important days in American history” as he announced a range of tariffs on imports of goods from around the world.
But what does it all mean, who is affected, and how might they respond?
Here is a quick summary of what you need to know.
What did Donald Trump announce last night?
US President Donald Trump announced a raft of tariffs yesterday evening on goods imported to the US from overseas.
He set a baseline minimum tariff for imports from all countries at 10%.
That baseline tariff is set to take effect on 5 April.
However, Mr Trump also announced a series of what he called “reciprocal tariffs” or retaliatory tariffs, which he says are being imposed on countries in response to the tariffs those countries have set on US goods.
Read more: US tariff move is first round in trade war with EU
These reciprocal tariffs range from the baseline of 10%, which has been applied to the UK and Australia among others, to as high as 50% for goods imported from Lesotho.
A tariff rate of 20% has been imposed on US imports of goods from the European Union.
The reciprocal tariffs are set to take effect on 9 April.
European Commission President Ursula Von der Leyen said the consequences of the tariffs will be “dire for millions of people around the globe”.
Which tariffs affect Ireland?
Ireland, as part of the EU, will be subject to a 20% reciprocal tariff rate.
Taoiseach Micheál Martin said he saw “no justification” for the tariffs and that disrupting the trade relationship between the EU and the US “benefits no one”.
He has called for unity in the EU, adding that the response must be “considered and measured”.
The estimated total impact of the US tariffs for Ireland could be a 2-3% drop in Irish exports to the US, experts have said.
Exports of Irish goods to the US amounted to €11.7 billion in January 2025, accounting for 48.4% of total Irish good exports.
How will the EU respond?
Donald Trump announced that a reciprocal tariff of 20% would be imposed on goods imported to the US from the European Union.
Imports from all EU nations, including Ireland, are therefore subject to this particular tariff rate.
EU officials have said some €380 billion worth of EU exports will be affected by the tariffs.
This amounts to about 70% of all EU exports to the US.
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70% of EU exports to be impacted by tariffs – officials
All eyes are now on the EU to see how it will respond.
EU officials have said the bloc will immediately retaliate against Donald Trump’s 25% tariffs on steel and aluminium, which he announced on 12 March.
However, the EU is expected to take time to analyse the impact of last night’s reciprocal tariffs before deciding on further so-called countermeasures.
Some countries have suggested targeting US services as part of any EU response.
Taoiseach Micheál Martin, however, said targeting services would not be wise, citing the fact that it would damage the tech sector in Ireland, and instead said the EU should focus on negotiating with the US.
Ursula von der Leyen warned the world economy will suffer massively as a result of the tariffs
Are the tariffs really ‘reciprocal’?
Donald Trump has labelled the new tariffs announced yesterday as “reciprocal tariffs”, which he says are being imposed as a response to countries which have tariffs in place on imports of US goods.
He claimed that the EU charges the US 39% in tariffs and is therefore charging the EU a “discounted” rate of 20% for its imports.
“We’re being very kind,” Mr Trump said.
However, RTÉ’s Europe correspondent Tony Connelly has referred to the 39% figure as nothing short of “mystifying”.
You would be hard pressed to find any credible estimate that puts the EU’s average tariff rate on US exports anywhere near that level, as RTÉ’s Deputy Foreign Editor Edmund Heaphy pointed out.
Read more: There is nothing ‘reciprocal’ about Donald Trump’s tariffs
“While the bloc does impose steep tariffs – exceeding 30% – on certain agricultural products like dairy, the weighted average tariff on American goods hovers around just 3%.
“This makes Mr Trump’s 20% tariff neither kind, nor reciprocal,” Edmund Heaphy writes.
What about the pharma industry?
Pharmaceuticals were among a number of goods given an exemption from the reciprocal tariffs announced by Donald Trump.
Other goods exempted included semiconductors, wood and copper.
That means that for the time being, they will not be subject to the 20% tariff rate imposed on US imports of EU goods.
However, it is still unclear whether the baseline tariff of 10% will apply to pharmaceuticals.
Read more: Irish pharma sector avoids 20% US tariff in immediate future
The US administration could still implement higher tariffs on pharmaceuticals at a later date, with the White House warning that future good-specific or sector-specific taxes may be announced.
One senior trade expert said the likelihood that pharmaceuticals will be singled out for similar treatment was “quite high”.
Around 45,000 people are employed by pharmaceutical companies, while €58 billion in pharma and chemicals is exported from Ireland to the US every year.
Will the tariffs harm Irish businesses?
Experts have said that Ireland’s thriving indigenous business sector will not emerge unscathed from the sweeping tariffs levied by the US.
The Irish Farmers’ Association said the relative differences of the tariffs announced last night will impact the competitiveness of Irish products on the US market, including Kerrygold.
Read more: Warning over impact of tariffs on Irish dairy and whiskey
The Irish Whiskey Association has said the effects of the US tariff announcement will be immediate on sales of Irish whiskey, as well as other Irish spirits and liqueurs in America.
Ireland exports €900m worth of drinks products – predominantly whiskey – and €830m worth of dairy products to the US each year, according to the IFA.
Northern Ireland
US imports of goods from Northern Ireland, as part of the UK, will be subject to a tariff rate of 10%.
This means the island of Ireland will have two separate tariff rates for US imports, with Irish goods hit with a 20% EU-wide rate.
Experts have said the lower tariffs on goods from Northern Ireland could create short-term advantages for Northern Ireland’s exports.
However, they are keen to note that the EU and UK response, and how they relate to one another, will be key in determining how the tariffs ultimately affect Northern Ireland.
Read more: Must ensure NI continues to thrive after tariffs, says O’Neill
Under the Windsor Framework, Northern Ireland must levy EU tariffs on imports from the US rather than UK imports.
If it can be established that the goods are remaining in Northern Ireland rather than moving into the single market, those tariffs can be claimed back.
The US is the second biggest market for Northern Ireland exports after the Republic of Ireland.
Rest of world
More than 60 countries and trading partners were targeted by Donald Trump’s reciprocal tariffs announcement.
China was hit with a 34% tariff, on top of the 20% Mr Trump previously imposed earlier this year, bringing the total new levies to 54%.
It urged Mr Trump to lift the tariffs and vowed to retaliate.
Read more: What’s in Trump’s sweeping new reciprocal tariff regime?
Tariffs of 27% were placed on goods from India while Japanese goods were hit with a 24% tariff.
The new 10% global tariff rate was not imposed on goods from Canada and Mexico.
However, a previous order remains in place for up to 25% tariffs on many goods from the two in connection to border control and fentanyl trafficking issues.
Other tariffs
The reciprocal tariffs and baseline minimum tariff are not the only duties that Donald Trump has announced on US imports in recent weeks.
Some existing tariffs will not stack on top of the reciprocal duties.
Imports that are subject to separate, 25% tariffs under Section 232 of the Trade Act of 1962 will be excluded, including autos and auto parts, steel and aluminum.
A 25% tariff on US imports of automobiles took effect today.
A tariff of 25% on steel and aluminium products imported to the US came into place on 12 March.
