ISME survey assessing exposure to tariffs and other trade disruptions
As Ireland gears to navigate the potential disruptions to international trade and the risk of a tariff war, ISME has conducted a flash survey of SMEs to assess any such exposure to tariffs and related challenges for trade.
Just 29% of the surveyed SMEs engage in exports, with the United Kingdom being the primary destination, and accounting for 66% of the total exports. The United States followed as the second-largest export market, accounting for 37% of the exports. Most SMEs are small-scale exporters, with over half of exports less than €250,000 per annum.
In the event of a trade war, it is essential to consider the import exposure for SMEs, as tariffs could markedly disrupt their supply chains. However, according to the ISME survey, the situation appears to be somewhat better for SMEs.
While 74% of SMEs rely on imports, the majority of these (57%) source their goods from the United Kingdom, while only 19% of imports originate from the US. This imbalance suggests that SMEs would face limited exposure to potential EU-imposed tariffs on US imports. However, the specific composition of these imports is yet to be analysed. As mentioned prior, most SMEs are small importers, with 43% importing goods valued at less than €250,000 annually.
Neil McDonnell, CEO, ISME said: “What remains clear in this survey is that despite Brexit, the UK remains of systemic importance to Irish SMEs. While ISME is hopeful that the impacts of a tariff war with the US can be avoided, a priority for the Irish Government must be to ensure that the impact on essential imports for SMEs are minimised, and that the relationship with the UK post-Brexit is sustained and further strengthened.”
Highlights
There were 120 responses to the survey, which was conducted over the first week of February 2025. 71% of those surveyed export and 74.4% import. The main export markets amongst those surveyed are: United Kingdom, United States, Belgium, France and Germany. The main import markets are: United Kingdom, Netherlands, United States, Germany, China, France and Belgium.
|
Combined Value of Top 5 Exports in Q4 2024 |
Percent |
|
Up to €250k |
54.29% |
|
€250K-500k |
11.43% |
|
€500k-€1m |
20.00% |
|
€1m-€5m |
8.57% |
|
€5m + |
5.71% |
|
Combined Value of Top 5 Imports in Q4 2024 |
Percent |
|
Up to €250k |
43.24% |
|
€250K-500k |
18.92% |
|
€500k-€1m |
13.51% |
|
€1m-€5m |
21.62% |
|
€5m + |
2.70% |
