Ireland sees 2025 economic growth slowing to 2% if tariffs stick

DUBLIN, May 6 (Reuters) - Growth in Ireland's domestic economy is expected to slow to 2% this year if a 10% tariff on U.S. imports from the European Union remains in place or 2.5% if tariffs are removed, Ireland's finance ministry forecast on Tuesday.

That compared to a forecast before U.S. President Donald Trump's election that modified domestic demand (MDD) - officials' preferred way to measure the economy - would grow by 2.9% in 2025 and similarly in 2026. MDD grew by 2.7% last year.

The finance ministry said MDD growth would slow further to 1.75% next year if the tariffs are still in place or expand by 2.8% without them. It said it truncated its updated forecast horizon to the end of 2026 due to the elevated uncertainty.