Jamie Spencer
Sentiment hits lowest level in nine months amid tariff threats
Consumer sentiment in Ireland dropped sharply in March, hitting a nine-month low as concerns mounted over the possible fallout from a U.S.-Europe trade war. The Credit Union Consumer Sentiment Index fell to 67.5, down from 74.8 in February, marking the steepest monthly drop in two and a half years.
The report blamed the sharp decline on fears that the Irish economy—particularly vulnerable to global trade disruptions—could be badly hit by new U.S. tariffs announced by President Donald Trump.
Pharmaceutical and auto exports in the crosshairs
On Wednesday, Trump announced a 25% tariff on all foreign-made cars and trucks and hinted at additional levies targeting Irish-made pharmaceuticals. The development raised alarm across Ireland’s export-heavy sectors, especially its Big Pharma industry, which relies heavily on access to the U.S. market.
The survey noted that Ireland is more exposed to U.S. trade policies than most Eurozone countries, which could explain why Irish sentiment fell more sharply than that of the broader Euro area or even the U.S.
Inflation pressures compound consumer gloom
In addition to trade worries, Irish consumers were spooked by a slew of announcements about upcoming price hikes in essential services. Expected increases in health insurance, energy, broadband, and mobile phone bills have heightened pressure on household budgets.
“It is not surprising that the March sentiment survey paints a picture of a much more nervous Irish consumer as they face into the uncertain impact a threatened trade war could have on the economy and their own personal financial circumstances,” said David Malone, CEO of the Irish League of Credit Unions.
