Chambers Ireland launch trade report showing how tariffs, trade wars & protectionism hit Irish and European growth

22 January 2026

With the looming threat of additional US tariffs over Greenland and EU discussions on retaliatory actions, Chambers Ireland has said that new analysis underlines and quantifies the harmful effect of trade policy uncertainty on investment throughout the European Union.

The latest report by Chambers Ireland and Eurochambres – the association of European chambers of commerce – is based on data from 24 European countries, spanning the past 25 years. The results show that:

  1. Trade policy uncertainty (i.e. tariffs, trade wars, and other forms of protectionism) significantly harms European business investments
  2. This negative effect is systematically more damaging to export-oriented countries like Ireland
  3. The effect grows over time, suggesting that we cannot yet gauge the full consequences of current trade uncertainty

Speaking at the launch of the report, Chief Executive Ian Talbot said that the turbulent international situation has specific and direct economic consequences for Ireland:

“As a small, export‑oriented economy, we cannot ignore the real threat that trade wars and rising protectionism pose to investment in Ireland. Without investment, we cannot hope for the growth, job creation and competitiveness that businesses need to prosper and maintain their socio-economic model.

Recent global trade developments clearly illustrate these effects. While the signing of the EU-Mercosur agreement last weekend raised hopes of more predictable international trading conditions, benefits will now not be realised until the Agreement undergoes referral to the European Court of Justice. Renewed tensions with the United States are also once again undermining business confidence.

At a time when uncertainty with one of our biggest markets looks set to continue, opposition to Free Trade Agreements like Mercosur must be reviewed by Government. We urge all parties to support efforts to widen our trade relationships to help secure our future.”

More favourable business conditions inside and outside the EU

Eurochambres President Vladimír Dlouhý commented: “Our businesses are caught between a rock and a hard place: on the one hand, export-oriented strategies are being undermined; on the other hand, growth within the EU has stagnated due to regulatory burdens and single market barriers.”

He said that European businesses need more favourable conditions, both within the EU and internationally: “Eurochambres urges EU policymakers to address both sides of this equation, pursuing new trade agreements with like-minded partners in growth markets, while getting to grips with regulatory burdens and obstacles to doing business within the single market.”

-ENDS-

Notes to the Editor

Five core recommendations from the Eurochambres Chief Economists Group working paper ‘The Impact of Trade Policy Uncertainty on Investment in the EU’:

  1. Ensure stability through trade agreements and geographical and economic diversification
  2. Strengthen and expand global rules for international trade to enhance predictability for investors
  3. Strengthen business support and pursue an SME-focused industrial policy to

enhance European competitiveness

  • Deepen the single market by removing existing barriers and leverage its strength broad
  • Support business confidence as a driver for increased investment

Read the full report here: https://bit.ly/TradePolicyUncertainty

For more information contact publicaffairs@chambers.ie

About Chambers Ireland

Chambers Ireland is an all-island business organisation with a unique geographical reach. Our members are the Chambers in the cities and towns throughout the country – active in every constituency. Chambers Ireland works with Eurochambres to ensure that the interests of Irish business are represented at European level.

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