Midwest businesses gather to discuss ripple effect of geopolitical uncertainty and tariffs

Business leaders from across the Midwest met at the Limerick Strand Hotel recently for an EY Limerick event focused on Indirect Tax and how organisations can best navigate the shifting landscape of tariffs and geopolitical uncertainty.

Limerick and the wider Midwest is a significant global hub for multinational companies, including pharmaceutical and medical technology firms, meaning businesses in the Limerick region may be impacted in this evolving economic landscape.

While the world of VAT faces its own challenges with most countries, including Ireland, seeking to modernise the administrative system of VAT with the introduction of real-time reporting and e-invoicing, it is global trade and tariffs that remain top of the agenda in the boardroom for 2025.

For Aideen Farrell, an Indirect Tax Partner at EY in Limerick, the current landscape is fraught with uncertainty.

“Substantial shifts in indirect tax policy – with global tariff rates shifting rapidly in recent weeks - are a significant concern for many businesses, particularly those with global supply chains, footprints and markets. This is a challenge for domestic and multinational organisations, requiring careful consideration from businesses to navigate the current climate and adapt to change.

"Moreover, the uncertainty on tariffs rates beyond the current “90 day pause”, makes it challenging to assess the potential longer-term impact and evolve their businesses accordingly.

"However it is the businesses that use this ‘90-day window’ not just as a pause—but as a chance to strengthen operational resilience and lay the groundwork for a durable strategy that will succeed, especially in a world where trade flows, regulations, and political winds are increasingly volatile.

"Limerick is home to major multinational firms and therefore the region is likely to experience the effects of these global shifts."

Ronan Guest, Supply Chain & Operations Consulting Partner at EY, observes that companies are reassessing their supply chains and pricing strategies to counteract cost increases and stresses the complexities involved in tracking supply chain origins.

To navigate these challenging times, EY recommends that businesses focus on understanding their supply chains, establishing a dedicated tariff team, exploring ways to mitigate tariff impacts and collaborating on supply chain restructuring and supplier optimisation.

Mark Hegarty, Managing Partner at EY Limerick, noted that while there were challenges on the horizon, the Midwest had a strong and durable economy.

"In recent decades, Ireland has developed into one of the world’s most dynamic and competitive countries, with an innovative and open trading economy, and the Midwest is a key part of this. Despite the ongoing geopolitical uncertainty, the innovative businesses and entrepreneurs here will ensure it continues to thrive now and into the future."

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