US Tariffs and the Irish Food and Beverage Industry

The US administration recently announced a tariff on imports from the European Union. Our Employment Law & Benefits team discuss the employment-related challenges and opportunities that the tariff might create for the Irish food and beverage industry

What you need to know

• Labour cost management: Increased labour costs may lead to redundancies or restructuring in the sector.
• Renewed focus on the domestic and EU labour market: With potential challenges in international trade, there may be a shift in focus to the domestic and EU market for food and beverage companies.
• Reviewing skill requirements: Employers will need to identify any new skills required to stay agile.
• Employment permits: The need for employment permits may be decreased where redundancies or restructuring is envisaged, or rise with increased recruitment.

The US administration recently announced a tariff on imports from the EU. The Irish food and beverage industry is particularly sensitive to shifts in international trade policies. The proposed tariff creates both employment-related challenges and opportunities for the sector.

Labour cost management

The imposition of the proposed tariff could make Irish food and beverage products less competitive in the US market, leading to a decrease in profits. If declining revenues impact the cost of managing labour, employers may have to make difficult staffing decisions. These could include restructuring, layoffs, and redundancies.

Renewed focus on the domestic and EU labour market

Facing potential challenges in international trade, employers may shift their focus to the domestic and EU markets. This may require employers to review their staff recruitment and retention strategies, to ensure they are best placed to increase their market share in new markets.

Reviewing skill requirements

If Irish food and beverage companies wish to retain a foothold in the US market, or to intensify their domestic/EU market share, adaptability is key. This might require strengthening sales, marketing and distribution networks at home and abroad. Employers will need to identify these skill requirements and invest in upskilling their existing workforce or recruiting those with the relevant expertise.

Employment permit holders

The Irish food and beverage sector relies on employment permit holders to fill certain roles, especially on a seasonal basis. The Government acknowledged this last year by introducing a new Seasonal Employment Permit (SEP) under the Employment Permits Act 2024. The SEP is a short-term work permit designed to allow foreign nationals to take up seasonal jobs. It applies to sectors such as agriculture and horticulture. A pilot programme was announced in February 2025 for horticultural operatives “in the soft fruit or vegetable growing sector”.

See our August 2024 article for more information.

The US tariffs are likely to create both staffing challenges and opportunities for growth. Challenges may include redundancies, layoffs, and restructuring. On the other hand, opportunities could arise through expansion in domestic or EU production and increased recruitment. As a result, employment permit holders are likely to be affected.

Key takeaways for Irish employers in the food and beverage industry

• Legal compliance with redundancy obligations: Employers who are negatively affected by the introduction of US tariffs and who choose to explore redundancy options should comply with their legal requirements. These include fair selection, consultation and statutory payments. Depending on how challenging the landscape becomes, there may be a move towards layoffs or short-time for employees, similar to what happened during COVID-19.
• Review recruitment and retention strategies: If a greater focus on the domestic/EU market is anticipated, employers should review their recruitment and retention strategies, considering factors such as compensation, benefits and remote/flexible working arrangements.
• Identify future skill requirements: Employers should assess whether shifting trade dynamics will impact on the skill sets they require and seek to upskill existing staff and/or recruit appropriately skilled individuals.
• Review employment permit requirements: Employers should understand the employment law and immigration implications for work permit holders if redundancies are considered or if new skills are required that necessitate the recruitment of non-EEA workers.
• Seek legal advice: Employers should seek legal advice when undertaking any significant changes to their workforce or business operations due to the introduction of tariffs.

Conclusion

The US administration's tariffs promise both challenges and opportunities for the Irish food and beverage industry. While job losses are possible, the need for adaptation also presents the prospect of upskilling, and of strengthening local market share. For employers, it is crucial to have a good understanding of Irish employment law when navigating the evolving business landscape.

For more information, please contact our Employment Law & Benefits team.

The content of this article is provided for information purposes only and does not constitute legal or other advice.