Ireland and U.S. tariffs: Relocations could hit 'like dropping a bomb'

On Tuesday 8 July, U.S. President Donald Trump threatened to impose up to 200 percent tariffs on imported pharmaceuticals "very soon."

Big pharma could be a big problem for Ireland if tariffs of that level are introduced, forcing mass repatriation to the U.S. of giant multinationals.

While the industry has kept mostly quiet, there has been some push-back and warnings that these levies could drive up costs, deter investments and disrupt international supply of medicines, putting people at risk.

Nine out of the top 10 big pharmaceutical companies have significant operations in Ireland, particularly in County Cork's pharma hub in the south of the country. Across Ireland, 60,000 people are directly employed in the industry, which brings in billions in tax revenue to public coffers, not to mention the indirect value.

At the Shamrocks of Shanbally club a two-minute drive from the entrance to the Pfizer manufacturing plant in County Cork, the concern is real.

The Shamrocks play Ireland's ancient Gaelic games of hurling and Gaelic football, pastimes that go back thousands of years.

These days the Gaelic Athletic Association (GAA) clubs are the heartbeat of local and rural communities, completely run by volunteers, from the administrations to coaching to players to lining the pitch.

John Twomey has been a Shamrocks volunteer for over half a century, and has seen more than most.

"I am a trustee and a lifelong member of the Shamrock Hurling and Football Club which is based in Shanbally, Co. Cork," he tells CGTN. "The club was founded in 1898 and this is my 57th year involved with the club.

"I remember when Pfizer came first, they were number one here around 1966 and it was absolutely huge, and not only to this area, but to County Cork and to Ireland nationally."

A 200 percent tariff could potentially decimate the area.

"It'd be like dropping a bomb on the area," Twomey continues. "I don't think people really realize how serious it would be. It would just be devastating.

"First of all, the people working there will lose their jobs. And all the suppliers, and everybody engaging with them in one way or another, would be all cut off – the farmers, for example.

"So young people in particular will head out for the airport, get a one-way ticket to Canada or Australia or New Zealand, wherever there's an opportunity."

Twomey fears the Shamrocks could lose players, coaches – an entire generation.
 

Professor says fears 'grossly overstated'

Shanbally is right next to Ringaskiddy and Cork harbor, which claims to be the world's second largest natural harbor after Sydney in Australia.

The area is home to multinationals like Johnson & Johnson, Pfizer and Eli Lily, part of a complex global supply chain built up over decades.

Experts say Pfizer and others just upping and moving back to the U.S. isn't as simple as it sounds.

To find out more, CGTN spoke to Professor Ron Davies. Originally from the U.S., Davies has spent 20 years living in Ireland.

"The concerns that people have with regards to pharma and the Trump administration trying to bring jobs back to America, I think are grossly overstated," he says.

"But even suppose that these companies do say 'OK, maybe we do want to relocate.' What does that take? You have to find a site. You have to build your facility. That's going to cost a billion and take years to do.

"So much of what makes Pfizer Pfizer is the knowledge that's embedded in people. But this is true not even just for Pfizer. It's true for your Google. It's true for your Alphabet. It's true for Apple. 

"So much of what makes those companies unique is what's in people. And people are a lot less mobile than everyone pretends that they are.

"It's not just about 'OK, we're going to reallocate production from here to here.' They have to re-allocate lives from here to here, they've got to re-allocate leadership from here to here. And that is really difficult to do."

The future of Shamrocks GAA club and their rising hurling stars rest on experts like Davies being right.

On tariffs: 'The Irish government should be worried'

While Davies remains unruffled about the imminent dangers from company relocation, he sees a more immediate problem in U.S. tariff threats.

"The Irish government should be worried, because the U.S. is a big trading partner for us," he says. "The U.S. is our main source of foreign direct investment, which is a big part of our economy. And the U.S. is a cultural partner to us.

"When one of our biggest partners seems to have gone off the rails, that's bad. If nothing else, if investment slows down, it just freezes up for the next four, five years, that's really gonna slow down our growth.

"I'm not concerned about things running away, what I'm concerned about are things stagnating. And that, I think, is the real thing to be worried about."