During his election campaign, President-elect Donald Trump promised to cut corporate tax rates to incentivise businesses to the US.

With 11% of Irish workers employed in US-owned foreign multinationals, there are concerns Ireland's economy may suffer during Trump's term.

On Breakfast Business with Joe Lynam, IDA chairman Feargal O’Rourke said it is important to look at Trump's incoming presidency "in the wider context of a very volatile environment".

"The COVID pandemic showed how supply chains got over-stretched, we've had wars, we've had the growth of AI, we've had a slowing of direct foreign investment and we’ve had an increase in populism and nationalism in a number of countries," he said.

Mr O'Rourke said many view the incoming Trump administration as a "large tipping point" for the economy.

"If you look at the rhetoric of the election campaign, the US itself has moved into a more protectionist mindset right across the board – I think it’s going to be a bumpy ride over the next 12 months," he said.

Donald Trump at a rally in Arizona, Alamy

Mr O'Rourke said Ireland is currently in a strong economic position.

"We have a budget in surplus regularly now," he said.

"We have over 300,000 people directly employed by foreign direct investment for the third year in a row - we have effectively full employment in the country.

"If we’re sitting here next year with that sort of background, I’d personally bite your hand off.” 

Tariffs

In addition to concerns over multi-nationals leaving Ireland, there are fears Trump's plan to introduce a universal tariff on all international goods could affect the economy.

In 2023, the US was Ireland's biggest market for goods, according to the Central Statistics Office, with the US accounting for over €54 billion in exports.

Former Taoiseach Bertie Ahern previously told Newstalk Breakfast Trump's tariff plan "would be a big problem" for Ireland.

Feature image shows Donald Trump at an election rally, Alamy.