07-05-2025
- Business
- Irish Independent
Majority of Irish businesses preparing for weaker economy amid trade war as firms look to cut reliance on US, survey shows
Irish businesses and IT firms with over 250 employees said one of their key economic concerns for the next year is a trade war with the US, the survey from consulting company Expleo said.
A majority of the companies said they are already preparing for a weaker Irish and global economy – with 64pc of them saying they've assigned at least one person or a team to assess the impact of US policies on their businesses.
As a result, 57pc of the companies surveyed said they were looking into how to reduce their reliance on the US.
Managing director for Expleo Ireland Phil Codd said Irish businesses would need to diversify to work against the uncertainties.
'Our research clearly points to a nervousness among the largest enterprises in Ireland about geopolitical risk,' he said.
'By diversifying their trading relationships and reducing overreliance on any one market – even one as significant as the US – organisations can build greater resilience against global economic shocks.'
With 28pc of large enterprises saying a trade war with the US would be their second-greatest threat, Mr Codd also warned against knee-jerk reactions.
'The US remains the world's largest economy and an important trading partner. The goal should not be to abandon trading relationships with the US, but to supplement it with new ones,' he said.
'Now is not the time to retreat – it is a time for bold action. The most successful organisations of the future will be those who embrace change, not fear it. In times of uncertainty, they will step forward, innovate and transform.'
The survey spoke to 200 people from across Irish businesses who also worried about other local challenges they needed to face in order to be more prepared for trade barriers.
Business leaders said other concerns were constraints for digital infrastructure in Ireland and cybersecurity threats to their firms. A majority of the enterprises viewed Ireland as a good location for digital innovation. Despite their economic concerns, 66pc of large organisations are expecting their businesses to grow over the next 12 months.
