'We can't ignore it and we need to be prepared': Fears Donald Trump election could spark multinational exodus from Cork

A Cork TD has said the potential attempt by Donald Trump to bring multinational companies based in Cork back to America is “something that we can’t ignore and that we have to be prepared for”.

Concerns were raised locally about the future of Foreign Direct Investment (FDI) in the region following Donald Trump’s victory over Kamala Harris to become the 47th president of the United States.

Mr Trump won a historic second term in the White House after sweeping four of the key battleground states hours after the polls closed on Election Day, securing the magic number of 270 Electoral College votes and securing the popular vote by 51% to 47.5%, claiming 77m ballots to Harris’s 66m.

Among the measures Mr Trump has announced as part of his economic plans are tax cuts for corporations and import tariffs, both of which could be damaging to the Irish economy and to the Cork region which is home to large multinational tech companies and pharmaceutical companies.

Mr Trump has plans to lower the US corporate tax rate from 21% to 15% which would bring it into direct competition with Ireland’s 15% for corporations and has sparked concerns that US-based multinationals may shift investment as well as some of their operations back to the US at the expense of our economy.

Suggestions have been made, however, that these companies benefit from the decades spent investing in the Cork region and building on their workforces and infrastructure.

Speaking to The Echo, Fianna Fáil TD for Cork South West, Christopher O’Sullivan, said: “From a Cork point of view, I can understand why there may be concerns expressed because of the amount of US Foreign Direct Investment in the Cork area because of the very important pharma companies such as Lilly and Pfizer and the tech companies here in Cork, American-owned.

“Obviously there is a suggestion that Trump will cut the corporation tax and try to bring those companies home and that’s something that we can’t ignore and that we have to be prepared for.

“I would say though that having visited the likes of Lilly and Pfizer and having met a lot of the tech companies, it is more than the corporation tax that is keeping them here. I think the educated, skilled workforce that we have on hand here is probably an even bigger factor and I don’t think that’s going to change.” 

Sinn Féin TD for Cork North Central, Thomas Gould, said: “The bumper corporate tax receipts of recent years have always been shaky. Trump’s election makes them more so. 

"By failing to invest adequately in our critical infrastructure, including in housing, and in our own domestic businesses, the Government has wilfully ignored these risks to date.” 

Mr Gould said that with Trump now elected it is even more important to do what he said Sinn Féin has been advocating all along - invest the revenues currently available to us now.

A spokesperson for IDA Ireland told The Echo that its mandate is to attract FDI into Ireland for the good of the economy and that its focus is to remain closely engaged with its client companies.

“The choice of the US president is the democratic decision of the American people. IDA Ireland’s mandate is to attract FDI into Ireland for the good of the economy – and in this regard we’ve been building our relationship with American businesses since we were established in 1949 – that’s over 75 years and 14 US presidents, including President Elect Trump,” the spokesperson said.

“Our focus is to remain closely engaged with our client companies ensuring that Ireland delivers on the capabilities and competencies required to enable further investment and growth.” 

Speaking about the outlook for Europe, former Cork TD Michael McGrath, who on Tuesday was confirmed as the European commissioner for democracy, justice and rule of law at the European Parliament, said: “The relationship between the EU and the US is a strategically important one for the world. It is also a close relationship, and I have no doubt the transatlantic partnership will remain strong under incoming President Trump.

“Once the new Commission takes office, I will work to continue to strengthen the cooperation between the EU - US on the areas under my portfolio including justice, consumer rights and data protection.”