InterTradeIreland’s latest All-island Business Monitor shows that business sentiment across the island remains resilient in 2025, with most firms holding steady and staying profitable. Yet, beneath this stability, new data uncovers a rising tide of uncertainty, as geopolitical tensions begin to erode business confidence.
The survey, which is the biggest of its type across the island, collects the views of 750 business owners and managers. It was conducted between 7th April and 9th of May, immediately after the announcement of new US trade tariffs.
This is the first comprehensive, all-island sentiment survey since the announcement of tariffs - and it’s timely in the context of ongoing developments. While core business indicators like profitability remain strong, the fast-evolving nature of the tariff situation is creating real uncertainty. The lack of clarity is making it increasingly difficult for business leaders to plan with confidence.
Martin Robinson, Director of Strategy, InterTradeIreland
The survey results reveal a clear sense of unease, with global political and trade uncertainties ranking among the top three concerns for businesses – three in ten (32%) SMEs identified it as a key issue. This growing anxiety appears to be directly impacting sentiment, as both business and consumer confidence are cooling – the number of businesses citing this as a concern has risen to 21% which is an increase of 16 percentage points compared to this time last year.
The number one concern remains rising costs of other overheads (56%), which includes staffing costs and insurance while energy bills remain a concern for half (51%) of businesses. Skills shortages remain persistent and competitive pressures are also rising with more firms flagging issues such as weakening demand and late payments.
According to the All-island Business Monitor, 14% of businesses surveyed are directly exposed to the impacts of US trade tariffs and potential retaliatory measures. Half of those affected have close trading connections with the US. Those who reported they were most concerned about the impact of tariffs were in the manufacturing sector, with worries about increased raw material costs and supply chain disruption.
This report once again shows the incredible resilience of our businesses as they navigate an uncertain trading environment. While many SMEs may not be directly affected by tariffs at this stage, I am acutely aware this is a volatile situation with a great deal of uncertainty around sectoral tariff rates and upcoming deadlines for negotiated outcomes. I am committed to supporting our business community through this time and have established a tariffs working group, tasked with monitoring the impact on businesses here. To assist start-ups and SMEs, I have also recently announced a £250 million Access to Finance funding which is valuable support to businesses across the north who are the backbone of our economy.
Dr Caoimhe Archibald, Economy Minister
Since taking office as Minister, I have made supporting small businesses a top priority. I have recently announced the establishment of a dedicated Small Business Unit in my Department and this week, we held the inaugural meeting of the Cost of Business Advisory Forum. I remain in close contact with colleagues in Enterprise Ireland who are engaging directly with SMEs exporting to the US and are offering advice and supports in this regard. My Department is focused on ensuring that SMEs have the support to run their business successfully, to continue to provide the vital economic benefit and employment to communities across the country.
Peter Burke, Enterprise Minister
The latest All-island Business Monitor survey also asked SMEs about their approach to sustainability and achieving net zero. While over half (55%) of respondents recognised its importance to their business, only 17% currently have a plan in place, with a further 12% developing one.
Among those without a net-zero strategy, eight in ten (86%) do not expect to have one within the next three years. When asked about the main barriers, four in ten (41%) cited the demands of daily operations as taking precedence over sustainability planning.
On sustainability and net zero, intentions are not translating into action. There is a sense from the survey findings that companies do not have the time to focus on strategic priorities like skills development, sustainability, and competitiveness. At InterTradeIreland we have a number of innovation programmes that can help businesses to address these challenges and become more productive and resilient.
Martin Robinson, Director of Strategy, InterTradeIreland
To sign up for InterTradeIreland’s research and a full report on the latest findings of the All-Island Business Monitor, visit the All-Island Business Monitor page.
