Firms expect impact from sweeping US regulatory changes
An overwhelming majority of Irish financial services organisations expect the sweeping regulatory changes emanating from the US to have an impact on Irish firms.
The area where this is most obvious is tariffs.
More than nine in ten organisations expect Irish firms to be hit by US regulatory changes, with more than two thirds concerned about the impact of these new rules.
A new survey by Ireland’s professional body for compliance professionals, the Compliance Institute, also revealed that the majority of those asked believe the EU is entering into a phase of regulatory easing on the back of recent developments, such as the EU’s adjustments to sustainability reporting rules and data protection requirements.
The survey results come against a backdrop of the looming August 1 deadline for US tariffs on almost all EU goods.
The survey revealed:
- Almost one in five (19%) financial services firms expect US regulatory changes to have “a lot” of impact on Irish firms, while a further 46% believe the policy shifts to have “some” impact.
- Almost three in ten (28%) expect US policy changes to have just “a little” impact on Irish firms.
- More than a fifth of financial services organisations are “very” concerned about the shifts in US policy since President Donal Trump was re-elected and almost half (46%) are “a little” concerned.
- Three in ten say they are not concerned about the US regulatory changes.
Michael Kavanagh, CEO of the Compliance Institute said: “The significant shifts in US trade policy since US President Donald Trump was re-elected have sparked concerns and uncertainty worldwide, including in Ireland, with both the Central Bank of Ireland and the Economic and Social Research Institute recently warning about the risks these changes pose to the Irish economy.
“This is all borne out by the results of our survey, which found that an overwhelming majority (93%) of Irish financial services organisations expect the sweeping regulatory changes emanating from the US to have an impact on Irish firms.
“The tariffs imposed and threatened by President Trump since he took up office have triggered market instability, disrupted supply chains, and increased costs for businesses. Given the large volume of goods that Ireland sells to the US, Ireland is very vulnerable to such tariffs. Furthermore, if US trade policies lead to an oversupply of goods in Europe, Irish businesses could face more competition and pricing pressures,” he said.
“Tariffs can also drive inflation – not just in Ireland, but worldwide, with sweeping repercussions. Any higher prices triggered by tariffs could prompt central banks to adjust interest rates, affecting borrowing and investment, which in turn could slow economic growth.
“But tariffs are just one element of the regulatory changes being rolled out under President Trump. His administration is also cracking down on illegal immigration and advancing an ambitious deregulatory agenda aimed at ‘reducing unnecessary, burdensome, and costly Federal regulations’. Uncertainty about the US policy environment has the potential to hurt businesses worldwide and may lead firms to hold back on investment decisions, hurting the world economy,” Mr Kavanagh said.
An EU with less red tape?
Earlier this year, the European Council moved to reduce red tape for EU companies, particularly SMEs. In light of this, the Compliance Institute survey also examined whether Irish financial services firms believe the EU is entering a phase or more relaxed rules and regulations.
Asked if they were of the view that the EU is entering a phase of regulatory easing:
- Six in ten (60%) agreed, though the majority of these (52%) still think the EU regulatory landscape will remain stricter than the US (see Table 3 in Appendix).
- About one in twelve (8%) expect “significant [EU] regulatory easing ahead”.
- A significant four in ten (40%) don’t expect any regulatory easing in the EU, with this split down the middle amongst those who believe the EU will maintain a highly regulated environment (20%) and those who don’t foresee any meaningful change in the EU regulatory landscape (19%).
Mr Kavanagh said, “While strong and good regulations are important, regulatory easing would likely be much welcomed by many businesses and firms across Ireland and the EU.
“Indeed, earlier this year, a survey conducted by the Compliance Institute found that nearly six in ten organisations in Ireland’s financial sector cited the continuous influx of new EU and Irish regulations as their biggest compliance challenge in 2025. It is clear that the overwhelming volume and pace of regulatory changes is putting significant pressure on compliance teams – so, a more measured approach to regulations and rules could ease the burden of red tape on Irish and EU businesses and perhaps be more conducive to economic growth and prosperity.”
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