Behind the Money How Trump’s tariffs threaten Ireland’s pharma fortune
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May 21, 2025 Jude Webber, the Ireland correspondent for the Financial Times, dives into the intricate ties between American pharmaceutical giants and Irish towns like Westport, where Botox is produced. She discusses how Trump's tariff threats loom over Ireland's pharma prosperity, potentially driving up consumer costs and shaking investor confidence. The episode also highlights the historical significance of foreign investment and the growing concerns about Ireland’s reliance on corporate tax revenues amidst a shifting economic landscape.
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Ireland's Tax Strategy Attracts Pharma
- Ireland's appeal to U.S. pharma grew from cheap labor and low corporate tax rates.
- Tax structures known as the "double Irish" allowed companies to minimize tax payments while legally operating in Ireland.
Trump's Tax Law Boosts Ireland
- Trump's 2017 Tax Cuts and Jobs Act unintentionally increased pharmaceutical profits booked in Ireland.
- This boosted Ireland's corporate tax revenue, contributing to large budget surpluses.
Peter Flynn's Allergan Experience
- Peter Flynn worked nearly three decades for Allergan in Westport, seeing the company transform the town's economy.
- Allergan's factory is crucial in Westport, manufacturing all the world's Botox in a highly technical operation now.