‘Very worrying’ Trump tariffs raise Mayo job fears

THE impending US tariffs on pharmaceutical goods have been described as ‘a very worrying’ development for Mayo - where over 3,000 people are employed by just three large pharmaceutical companies.

The tariffs due to be announced on April 2 have been greeted with severe concern over the potential knock-on effect to the Irish economy.

In Mayo, pharmaceutical giants AbbVie, Baxter, and Hollister have long been among the county’s largest employers.

Over 1,300 people are employed in Abbvie in Westport, and it has been the town’s biggest employer for several years. Over 1,200 are employed in Baxter at facilities in Castlebar and Swinford, while a further 1,000-odd are employed in Hollister in Ballina.

Speaking to The Mayo News yesterday (Monday), Westport-based TD Keira Keogh said she would arrange to meet with AbbVie following the Trump administration’s official announcement on Wednesday - which has been labelled ‘Liberation Day’ by the US administration.

The tariffs aim to incentivise pharmaceutical companies to relocate to the US by increasing the cost of importing goods into the country.

WARNINGS

SEVERAL leading economists and business industry representatives have warned about the potential impact of the new tariffs on the Irish pharmaceutical industry. Last year, the country exported €58 billion of pharmaceutical goods to the US.

“It’s a very worrying time, especially with towns like my own being so dependent on companies like Abbvie,” said Deputy Keogh.

The Fine Gael told The Mayo News that representatives from AbbVie met the Minister for Health, Jennifer Carroll McNeill, in Chicago a number of weeks ago ‘and did not in any way mention job losses’.

Deputy Keogh has raised the matter with Minister for Public Expenditure, Paschal Donohoe, who has said he is ‘extremely concerned’ about the potential impact of proposed United States tariffs on Irish pharmaceutical exports. The EU are expected to impose tariffs on US goods in retaliation.

AbbVie, formerly known as Allergan, employs 2,600 people at six sites around the country. Of these, approximately 1,400 are employed at its Westport campus, which was established in 1977.

It later expanded into a 61-acre campus specialising in aseptic sterile manufacturing, encompassing a pharmaceuticals facility, two biologics plants and an ocular implant facility manufacturing a range of eye care products.

The company is the world’s leading manufacturer of Botox, a bacterial substance used for various cosmetic procedures.

Its second biologics facility was opened in early 2020 as part of a €160 million expansion.

Speaking on RTÉ’s Claire Byrne Show earlier this month, Deputy Keogh described the threat of tariffs as ‘a precarious situation’.

Two Westport-based AbbVie employees told The Mayo News yesterday (Monday) that the company had not communicated with them regarding the potential effects of the new tariffs.

The last major job losses at the Westport plant occurred in 2004, when more than 320 people were made redundant.

AbbVie have sponsored various local initiatives over the years and are the current sponsors of the Mayo GAA senior football leagues. The company also has naming rights for Westport United’s AbbVie United Park, which was officially opened last year.

Two AbbVie employees told The Mayo News yesterday (Monday) that there had been no communication from the company regarding the potential impact of tariffs on their Mayo workforce.

EXPOSED

BAXTER were established in Castlebar in 1972 with nine employees. Today, it is one of the town’s major employers.

Its Mayo facilities produce medical solutions for renal dialysis therapy and drug administration purposes. It employs nearly 2,000 people in total across five sites in Ireland.

Both AbbVie and Baxter have been contacted by The Mayo News for comment.

Hollister was established in Ballina in 1976 and produces a range of postomy care and continence care products. The company declined to comment when contacted by The Mayo News.

Local senator, Mark Duffy, said the Mayo was ‘exposed’ due to the amount of US investment in the county.

“It’s not a Ballina problem; it’s an Irish problem, especially in Mayo, where we have strong FDI from the US,” Senator Duffy told The Mayo News yesterday (Monday).

Senator Duffy noted that favourable tax arrangements, a highly educated workforce and a multi-billion euro rainy day fund could mitigate against knock-on effects from the proposed tariffs.

“I have concerns. There is definitely risk. Wednesday will tell a lot, but I also have confidence in us as a workforce, in us as a country to respond to it robustly.”

In an interview with The Mayo News in January, Minister of State Alan Dillon called for engagement with the Trump administration to protect jobs in Mayo.

“We need to ensure that any potential tariffs on exports back into the US are discussed and negotiated and have a limited impact on those important companies,” he said.