Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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266. To ask the Minister for Finance if he has conducted an assessment of the likely impact on Irish pharmaceutical exports and State tax receipts of recent tariff announcements by the United States administration; and the contingency measures being considered in Budget 2026 to mitigate any fiscal risk arising from changes in U.S. trade policy. [52761/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government is aware of the recent announcement of new US tariffs, including those on patented pharmaceuticals. It is important to stress, however, that the EU-US Joint Statement was unambiguous with respect to pharmaceuticals. Any new tariffs announced by the US on pharmaceuticals following the conclusion of the Section 232 investigation would not exceed 15 per cent for pharmaceutical products being imported from the EU. This remains the case and underlines again the value of the agreement reached in August.

The recently agreed deal represents a more optimal outcome than the alternative landscape that would have almost certainly included higher tariffs, scope for retaliation and escalation and ultimately a higher degree of uncertainty. That said, the introduction of tariffs is, of course, expected to weigh on economic growth over the coming years. My Department will publish updated macroeconomic forecasts alongside the Budget, which will inter alia incorporate the estimated impact of the introduction of 15 per cent tariffs on the Irish economy.

Given the more challenging external backdrop, it is imperative that policy remains focused on boosting the resilience of the Irish economy. That is why Budget 2026 will focus on investment, which will help to maintain competitiveness and boost productivity. Finally, it is important that we continue to build up our fiscal buffers including through transfers to the Future Ireland Fund and the Infrastructure Climate and Nature Fund.