With eight of the world’s top medical technology companies based in Galway, the recent announcements on corporation tax by newly inaugurated President Donald Trump are being monitored closely behind closed doors.

None of the biggest employers among the American multinationals were willing to speak publicly to the Galway City Tribune for fear of drawing the ire of the notoriously prickly businessman, who begins his second term.

Within hours of being sworn in, President Trump told officials in a memorandum to notify the Organisation for Economic Co-operation and Development (OECD) that any promises made by the Biden administration on the global tax deal no longer stood.

That OECD Global Tax Deal signed by more than 100 countries including Ireland was meant to level the international tax playing field with a 15% minimum tax rate on companies in a bid to stop multinationals from shifting profits to countries with low or zero corporate tax rates.

He said the agreement allowed extraterritorial jurisdiction over American income and limited the country’s ability to enact tax policies that serve American interests.

He ordered his officials to identify foreign countries that had tax rules that were “extraterritorial or disproportionately affect American companies” and gave them 60 days to come up “protective measures” his government should take in response.

Levies on the €54 billion worth of pharmaceuticals exported by companies in Ireland to the US every year could spell disaster for the Irish economy. In 2023, just three companies paid €10b of the total €23b collected in corporation tax.

Tariffs on the EU during his previous presidency affected Irish butter, cheese and cream liqueurs but there were later suspended.

During the presidential race, he spoke about the possibility of reducing American corporation tax to 15% which is the same level as Ireland.

While the interim CEO of the Galway Chamber of Commerce acknowledges that these pronouncements may be causing uncertainty among the American Irish business leaders here, Galway’s lure for multinationals remains.

“It does not change the fact that Galway is a very attractive location for the American multinationals due to our indigenous highly educated labour force and Galway’s world-renowned position as an innovative ‘medtech’ hub,” Deirdre MacLoughlin stated.

“There is little to be gained by being obsessive about what may or may not happen, we need to look to the evidence that identified Galway as a world class location for business, investment, and people in an inclusive and sustainable manner.”

She recalled that in 2019 the threat of Brexit was the greatest geopolitical risk on the horizon, which was quickly followed by the Covid crisis, war in the Ukraine and the Middle East, causing global discord and severely disrupting supply chains.

“Yet, in spite of all those challenges, GDP would grow by over 30% and our employment levels would be at a historic high of over 2.7 million people.

“Similarly now, with this new threat on the horizon, economic success in Galway and the northwestern region will be achieved by, not only continuing to attract and sustain Foreign Direct Investment (FDI), but also by supporting and promoting successful indigenous Irish businesses that drive local innovation and job creation.”

She pointed to the success in Galway of Aerogen — the largest indigenous ‘medtech’ company, which recently announced a €300 million investment over the next decade to develop new products and expand into the biopharmaceutical sector, leading to the creation of 725 jobs in Galway and Shannon.

“The need to champion successful indigenous businesses and support more SMEs to scale and grow is a business imperative. Platform94, a Galway Chamber subsidiary, is key to fostering innovation and growth within the tech sector, supporting those companies that wish to scale internationally.”

Pictured: Boston Scientific and Medtronic are among Galway’s biggest employers.