2 days ago
Trade uncertainty denting confidence in Irish businesses, warns report
One in every three Irish businesses now see global political and trade uncertainties as a key concern, with geopolitical tensions beginning to erode business confidence, the latest All-Island Business Monitor has warned.
InterTradeIreland's latest All-island Business Monitor shows that business sentiment across the island remains resilient in 2025, with most firms holding steady and staying profitable. Yet, beneath this stability, trade uncertainties rank among the top three concerns for businesses, with 32% of SMEs viewing it as a key issue.
InterTradeIreland director of strategy Martin Robinson said the fast-evolving nature of the tariff situation is fuelling the uncertainty. 'The lack of clarity is making it increasingly difficult for business leaders to plan with confidence,' Mr Robinson said.
The survey noted the number of businesses citing business and consumer confidence itself as a concern has risen to 21%, an increase of 16 percentage points compared to 2024.
The All-island Business Monitor collects the views of 750 business owners and managers. It was conducted between April 7 and May 9, immediately after the announcement of new US trade tariffs.
The number one concern for businesses remains rising costs of other overheads (56%), which includes staffing costs and insurance while energy bills remain a concern for half (51%) of businesses. Skills shortages remain persistent and competitive pressures are also rising with more firms flagging issues such as weakening demand and late payments.
According to the All-island Business Monitor, 14% of businesses surveyed are directly exposed to the impacts of US trade tariffs and potential retaliatory measures. Those who reported they were most concerned about the impact of tariffs were in the manufacturing sector, with worries about increased raw material costs and supply chain disruption.
This comes as the 2025 All-Island Industry 4.0 Future Skills report launched on Thursday in Dundalk reveals that the advanced manufacturing sector is facing a growing skills challenge that threatens to impact innovation, competitiveness and economic growth unless coordinated action is taken.
On Thursday, Taoiseach Micheál Martin is joining business leaders and stakeholders from across the island in Dundalk for the annual Ibec and Confederation of British Industry (CBI) All-Island Economy Conference.
'The rise in global uncertainty stemming from US trade and tariff policies and growing geopolitical disruption means the all-island economy must focus on building resilience and deepening collaboration,' said Ibec chief executive Danny McCoy.
