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An Irish town produces Botox – Trump's trade deal could have consequences
Westport, Ireland produces the world's Botox and profits from its pharmaceutical industry. But Trump's new tariffs are endangering the local economy and raising questions about the future.
An Irish town produces Botox – Trump's trade deal could have consequences
In the picturesque coastal town of Westport, located in County Mayo, a surprising industrial hub has emerged: the Abbott plant, known as the world's most important center for Botox production. The facilities, operated by the pharmaceutical company AbbVie, employ at least 1,300 local employees and about 500 other contract workers, forming the economic backbone for a city with barely 7,000 residents. Therapeutic Botox is used for a variety of medical applications, including muscle spasticity, migraines and overactive bladder, and generated an impressive $3.3 billion for AbbVie last year. Sales revenue from cosmetic Botox, which is often used to smooth wrinkles, also contributed $2.72 billion to the balance sheet.
Tariffs and their impact on industry
But recently US President Donald Trump took a decisive step towards relocating this multi-billion dollar industry back to the USA. He announced a 15% tariff on all pharmaceutical exports from the European Union. This move is viewed with concern by many, particularly Westport residents, as the city has been transformed by the Allergan plant, which opened in 1977, and its acquisition and expansion by AbbVie in 2020.
The concerns of Westport residents
Within the sprawling 61-hectare site, which sits picturesquely at the foot of Croagh Patrick - one of Ireland's most famous pilgrimage sites - Botox vials are processed and packaged into powder form before being exported to around 70 countries. The USA is the main buyer and accounts for 70% of sales at the Westport facility, which also produces eye care products.
Uncertainty over how the new tariffs will affect the company has caused concern in Westport. “People are worried about their jobs and don’t know what will happen next,” said Anne-Marie, a daycare worker. These fears are also reflected in the public, as the long-term benefits of real estate are always emphasized, such as supporting infrastructure, sports teams and local charitable events.
Political decisions and their consequences
Brian Cusack, a member of Westport United football club's development committee, expressed optimism about the future but admitted there were "a lot of changes ahead, perhaps not for the good". No one in Westport wants to imagine the reality without the American pharmaceutical industry.
The new tariffs represent a real challenge for the city. While some see the US-EU negotiations as progress, other European leaders see the forced changes as a barrier against greater damage. Trump made it clear that tariffs on imported pharmaceutical products could reach 250% in the next 18 months. This threat is making the rounds as the US deliberates on the safety of foreign medicines.
The future of the location within the framework of new investments
Despite the uncertainties, the Westport company's long-term prospects are unclear. AbbVie itself has not yet announced any plans to relocate its production facilities. In a recent conference call, AbbVie President Robert A. Michael said the company is having "constructive discussions with the government about sector tariffs" and reiterated its long-term willingness to invest in the United States.
How the new tariffs might affect Ireland remains to be seen, but the signs are not good as pharmaceutical products accounted for €44 billion of the €72.6 billion in exports to the US last year. Fears are growing that rising drug prices could ultimately weigh on American consumers - which would of course also impact the Irish tourism sector.
Conclusion: an uncertain future
Concerns about the future of the pharmaceutical industry in Westport are high. As hotelier Michael Lennon, who caters to American guests crucial to tourism in the region, notes: “We need to have all these Americans in Ireland.” Whether Trump's policies are actually beneficial for the Americans and therefore also for the Irish remains questionable. However, the hope for innovative approaches and adaptability shows that Westport residents are ready to face the challenges and actively shape their future.