The Government has announced a new “market diversification” strategy to mitigate the impact of US tariffs on Irish businesses

The action plan, developed jointly by the Department of Enterprise and the Department of Foreign Affairs, will offer exporting firms grants and other supports to explore new market opportunities outside of the US.

It comes in the wake of the recent European Union-US trade deal which includes a 15 per cent tariff on most European Union (EU) exports to the US, a levy that is seen as particularly damaging to the food and drink sector here.

Minister for Enterprise Peter Burke said the plan was a response to the “huge uncertainty” hanging over the global trading environment which left Ireland, as a small export-led economy, “exposed”.

[ Enterprise Ireland unveils support grants for clients impacted by tariffsOpens in new window ]

He said the plan should be seen as Ireland entering a new phase of trade development rather than a move away from the US market.

The US is Ireland’s largest trading partner, accounting for 30 per cent of the State’s total trade (in goods and services) last year.

Minister Burke noted that his department’s €3.6 billion budget allocation under the revamped National Development Plan (NDP), which includes €600 million in additional money, would help fund the 100-point action plan.

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Under the plan, Enterprise Ireland will offer client companies market research grants of up to €35,000 to assess “the full impact of tariffs, gain market insights and develop mitigation strategies”.

There would also be a new markets validation grant of up to €150,000 for companies to develop market entry strategies for new markets or new products.

As part of the plan, the Government will also review its “incentive offering”, across grants and tax which support existing businesses.

[ Ireland has a golden economic opportunity. Don’t blow itOpens in new window ]

It will develop a new “strategic air access fund” with the aim of introducing new long-haul routes into and out of Ireland while allocating more resources to support faster processing of legal migration visas and permissions.

Of the 950 Enterprise Ireland client companies that currently export to the US, the agency estimates that approximately 450 will be “most impacted” by the new 15 per cent tariff.

Mr Burke insisted the Government would not be scaling back its planned budget spend in face of Washington’s new US tariff regime.

As part of the Summer Economic Statement, Minister for Finance Paschal Donohoe announced the upcoming budget would be framed around a €9.4 billion spending and tax package.

“The budget arithmetic still stands,” he said, while hinting the Government’s growth projections could change in tandem changing growth patterns in export markets, including the US and China.

“Ireland’s economic model is built on open access to global markets, underpinned by free-flowing trade and investment,” he said.

“That openness makes us agile, but it also means we are exposed to changes in global trade patterns and currency movements. This action plan is about ensuring we stay ahead of those changes, on behalf of the many innovative Irish businesses with high-value products to export,” Mr Burke said