New Chambers Ireland analysis shows sustained damage from tariffs and protectionist measures, with Ireland among the most exposed.
Chambers Ireland has warned that rising global trade tensions are already suppressing investment across Europe and are likely to inflict deeper economic damage in the years ahead.
The organisation made the remarks as it published new research with Eurochambres that tracks the relationship between trade policy uncertainty and investment decisions over the past quarter century.
“Without investment, we cannot hope for the growth, job creation and competitiveness that businesses need to prosper and maintain their socio-economic model”
Drawing on data from 24 European economies, the study concludes that uncertainty created by tariffs, trade disputes and other forms of protectionism has a clear negative impact on business investment.
The findings show that export‑dependent economies such as Ireland face disproportionate risks when global trading conditions become unpredictable.
Unsettled economic environment
Speaking at the launch of the report Ian Talbot, chief executive of Chambers Ireland, said the economic environment facing Irish businesses has become increasingly unsettled.
“As a small, export oriented economy, we cannot ignore the real threat that trade wars and rising protectionism pose to investment in Ireland,” he said.
“Without investment, we cannot hope for the growth, job creation and competitiveness that businesses need to prosper and maintain their socio-economic model.”
Talbot pointed to recent developments as evidence of the fragile backdrop. The signing of the EU Mercosur agreement had sparked hopes of improved stability, but its benefits will not materialise until the pact is reviewed by the European Court of Justice.
He added that renewed tensions with the United States were “once again undermining business confidence,” creating further hesitation among firms evaluating expansion plans. “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,” Talbot said. “We urge all parties to support efforts to widen our trade relationships to help secure our future.”
Eurochambres President Vladimír Dlouhý said many European companies feel that their operating environment has tightened both internationally and within the EU.
“Our businesses are caught between a rock and a hard place,” he said. “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.”
Dlouhý argued that policymakers need to advance work on two fronts. “European businesses need more favourable conditions, both within the EU and internationally. Eurochambres urges EU policymakers to pursue new trade agreements with partners in growth markets while also addressing regulatory burdens and obstacles to doing business within the single market,” he said.
Alongside the report, the Eurochambres Chief Economists Group set out five recommendations. These include strengthening global trade rules to make conditions more predictable, supporting businesses through SME‑focused industrial policies, deepening the single market and prioritising measures that strengthen business confidence.
Chambers Ireland said the findings should inform the national debate on trade policy, particularly as Ireland prepares for a period of heightened geopolitical and commercial uncertainty.
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