Inward investment by US companies has long been a cornerstone of the Republic’s economic model. Almost 970 US companies directly employ 211,000 people across the State and indirectly support a further 168,000 jobs.
It is a two-way street. The Republic is the sixth-largest investor in the US, with some 203,000 people directly employed by Irish companies there.
In the current difficult geopolitical environment, the good news is that US companies continue to hold a positive view of Ireland as a location for investment and growth, according to the latest American Chamber of Commerce Ireland (AmCham) Quarterly FDI Insights survey.
Nine in 10 respondents said their corporate headquarters have a positive view of Ireland as an investment location. Moreover, 80 per cent said they continue to have a positive view of Ireland as an investment location regardless of tariffs being imposed by the US on the EU.
But tariffs aren’t the only headwind. Almost two-thirds of respondents said they were experiencing a skills gap while a significant number identified housing and cost competitiveness as key challenges.
“In the wake of Brexit, Ireland is a strategic entry point for US companies seeking access to the EU market. Ireland offers a familiar legal framework and language, which simplifies operations for US firms,” says Orla Gavin, head of tax at KPMG.
“Ireland, with its successful history of attracting and retaining businesses with global operations, may be impacted by the ongoing economic uncertainties to a greater extent than other countries. Amidst this uncertainty, Ireland should continue to present itself as a stable destination for inward investment.”
Gavin says this will involve introducing tax measures in Budget 2026 focused on propelling business activity forward.
“To build resilience in the economy, both for FDI and domestic business, the Government should focus measures to position Ireland as an innovation hub, encourage greater investment in housing and reduce the cost of employment,” she says.
“It is important that the Government continues to proactively advocate for and protect Ireland’s interests at an EU and OECD level in the formation of any response to the US concerns on BEPS and the US trade tariffs.”
The good news is that, in addition to its strategic location within the EU, several other features make the Republic an attractive location, as Gavin’s colleague, KPMG tax partner Cillein Barry, points out .
“These include a long-standing stable tax regime, providing certainty to investors, the force of attraction from most, if not all, peer companies establishing in Ireland, a highly skilled, English-speaking workforce and a competitive R&D tax credit regime,” he explains.
“The new participation exemption for foreign dividends alongside our strong double tax treaty network positions Ireland as a leading destination for US multinational corporations seeking an EU base.”
Barry believes the Government should prioritise tax certainty and enhance its value offerings to businesses and highly skilled individuals.
“We would advocate for introducing positive policy measures to position Ireland as an innovation hub, such as increasing the R&D tax credit, expanding qualifying investment to include key emerging areas such as AI, and introducing an enhanced tax credit for innovation in green technologies,” he says.
Unfortunately the current geopolitical uncertainty is already having an impact, with some investment plans paused while companies see how things settle, says Brussels-based Ibec EU policy executive Róisín de Bhaldraithe.
On the plus side, not alone does the Republic have a strong skills base, de Bhaldraithe points out, it also has access to skilled labour from right across the EU, something the UK no longer has.
At the same time the State’s deep links with the UK adds to our attractiveness for US FDI. “We have doors to various markets,” she says.
There are other reasons for optimism too. “There is still good interest and a good pipeline of investment both among existing US multinationals that are in Ireland and also some new ones,” says Harry Harrison, tax partner at PwC Ireland.
“So yes, there is uncertainty, and uncertainty does cause decision making to pause, but I don’t think it’s going to upend the whole Ireland-US relationship; it’s too entrenched, with too strong a track record.”
That said, the Government must work hard to support competitiveness, including in relation to housing and transport. “We need to double down on the ways that makes the day-to day-lives of the US multinationals operating in Ireland easier,” says Harrison.
Ireland remains ideally positioned as a launch pad for US multinationals entering the European market, says Rhonda Doyle, country president of digital automation and energy management specialist Schneider Electric Ireland.
“With sector expertise in digital, cleantech and high-value business services, alongside a strong pipeline of sustainability initiatives, Ireland offers the infrastructure and talent [multinational companies] need to scale and lead across Europe,” says Doyle.
“As the world grapples with escalating climate and energy crises, cross-border cooperation is essential to delivering effective, collective solutions. Eliminating trade barriers and fostering cross-border investment are key to developing the infrastructure necessary for Europe, the US and other nations to enhance resilience and accelerate decarbonisation efforts.”
It’s vital for Ireland Inc too, given how many companies here have grown thanks to strong relationships with US multinationals. For example, construction giant Sisk has been working with US companies in the life sciences, data centre and semiconductor sectors since the 1980s.
“Their investment in Ireland, and now in Europe, has seen us grow and learn with them and understand what they need from us a partner in construction delivery. This has enhanced our business and the wider construction sector in Ireland as we have developed the skills and supply chain partnerships to support this inward investment flow,” says Donal McCarthy, Sisk’s chief operating officer, data centres, life sciences and tech.
“It is key that Ireland remains an attractive location for continued foreign direct investment, that current headwinds in relation to power and planning are addressed urgently at Government level to ensure continued growth, and that we retain the highly skilled workforce.”
