Updates from Ibec CEO Danny McCoy

CEO Update: Key Takeaways from Ibec’s Recent US, UK, and EU Engagements

Friday, 21 March

The latest CEO Update to Ibec membership from Danny McCoy

Dear Member,

March has been an exceptionally busy month on our international lobbying agenda, with significant engagements on the UK-Ireland reset agenda with the launch of a macroeconomic model for Northern Ireland in advance of the intergovernmental meeting in Liverpool.

Last week’s Ibec visit to the US was one of the most important given the uncertainty generated by the Trump presidency. Our engagements in New York and Washington DC included a series of meetings and discussions with business leaders and policymakers.

Key takeaways from these discussions:

• US business sentiment on the economy is deteriorating. The initial boost in confidence following the election has long since faded. Business leaders are now feeling the costs of economic uncertainty. With no clear direction on tariffs and other measures, many businesses are reluctant to make investment decisions. Additionally, given the current labour shortages in US manufacturing (500,000 vacancies), businesses see limited economic benefits from supply chain disruptions, regulatory changes, and other consequences of the re-shoring agenda.
• Strong awareness of the Irish economy and US-Ireland ties. Sentiment toward Ireland was positive, with high awareness of the risks posed to the all-island economy—and by extension, the Peace Process—if divergent tariffs apply to Ireland versus the UK. More generally on tariffs, Ibec Chief Economist Gerard Brady provided analysis on the Irish Times Inside Business Podcast, discussing the potential fallout should tariffs materialise.
• Despite tensions, the US values its economic ties with the EU. While the US administration remains focused on addressing the goods trade deficit, it also recognises the importance of services trade with the EU’s 450 million consumers. This mutual dependence creates a strong foundation for comprehensive EU-US negotiations that could extend beyond trade to areas such as defence and security, energy, taxation, and EU regulatory issues.

This week, Ibec also hosted a series of meetings and events in Brussels, including a flagship reception in the European Parliament and attended by over 300 members and stakeholders.. The event featured speeches from Ibec President Anne O’Leary, Commissioner Michael McGrath, and European Parliament President Roberta Metsola. The programme provided a valuable opportunity to address the priorities for Irish business amid escalating geopolitical tensions with our European colleagues.

Finally, ahead of Government Trade Forum today, I spoke to RTE’s Morning Ireland programme on transatlantic trade and the potential implications of tariffs for Irish Business.

Regards,

Danny McCoy
CEO
Ibec