**Belfast**: InterTradeIreland warns that impending US tariffs on the EU could affect Northern Ireland businesses. Despite this, optimism remains following a meeting between Taoiseach Micheál Martin and US President Donald Trump, highlighting potential for collaboration and resilience in the local economy.
InterTradeIreland has voiced caution regarding the potential opportunities for businesses in Northern Ireland as the United States prepares to impose tariffs on the European Union, while exempting the United Kingdom. The all-island agency expressed optimism about the recent meeting between Taoiseach Micheál Martin and US President Donald Trump, seeing it as a vital chance to fortify trading relations with an important partner.
In an interview with Morning Ireland, Martin Robinson, Director of Strategy at InterTradeIreland, indicated the uncertainty surrounding the specifics of the forthcoming tariffs. He stated, “We don’t have the specifics as to where the tariffs are going to apply; what particular areas and products. It’s difficult and not that helpful to speculate on what the opportunities will be.” Robinson highlighted a positive sentiment regarding trade on the island, emphasising potential for collaboration across various sectors despite the tariffs.
InterTradeIreland’s latest business monitor suggests that global market volatility is dampening business investment enthusiasm, leading many firms to adopt a “wait and see” stance amid the tumultuous economic climate. The survey results indicated that over half of participating companies (55%) are maintaining a stable footing, while a significant number (32%) reported signs of growth, although investment ambitions remain subdued.
Looking ahead to 2025, a mere 5% of firms expressed intentions to pursue major investments in new markets, while nearly half (49%) are concentrating on sustaining their current businesses. Robinson remarked, “It seems that external pressures are forcing most businesses to play it safe and adopt a ‘steady as she goes’ approach rather than plan for growth.” These pressures include uncertainties surrounding trade policy, geopolitical tensions, and rising overheads, particularly due to increased energy costs, which affect more than half of businesses surveyed.
The monitor also flagged recruitment challenges as a notable issue, with 40% of employers who sought new talent in the past two years encountering difficulties. Despite these challenges, a slight rise in hiring expectations was noted, especially among larger firms, suggesting a glimmer of optimism in recruitment.
Despite various challenges, the data presented indications of economic resilience, with two-thirds of firms reporting profitability and sales expectations reaching the highest levels since before the Covid-19 pandemic. Approximately 44% of businesses expect sales growth within the next six months.
Peter Burke, Minister for Enterprise, expressed satisfaction with the report’s findings, particularly regarding business profitability and optimistic sales forecasts. He reaffirmed the government’s commitment to supporting the enterprise sector through initiatives such as the forthcoming Small Business Unit aimed at delivering targeted assistance to small businesses.
While the majority of firms reported that post-Brexit trading disruptions have had minimal impact, approximately 20% acknowledged the necessity for adjustments in their operations. Notably, 68% of those affected stated they modified their supply chains, and over half (54%) adapted to increased paperwork requirements.
Caoimhe Archibald, the Economy Minister, underscored the commitment to fostering a globally competitive and sustainable economy, aligning with the Executive’s Programme for Government. She emphasised the resilience of businesses in Northern Ireland and the importance of leveraging the unique opportunities presented by dual market access.
Looking ahead, Robinson remarked that businesses with ambitious plans are often those engaging in cross-border trade. He encouraged firms to seek support to innovate and tackle skill gaps, underscoring that while current conditions may be uncertain, innovation remains a cornerstone for long-term growth. He recommended businesses connect with InterTradeIreland for assistance in navigating challenges and capitalising on opportunities within the cross-border market.
Source: Noah Wire Services
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