Trump's tariffs are now projected at 15%, which is likely to result in considerable economic repercussions. The €1 billion reduction in VAT for the hospitality sector has been postponed to July 2026. This delay is intended to allow the government to have more flexibility for potential tax cuts in the upcoming Budget. Initial indications from Finance Minister Paschal Donohoe suggested that the VAT reduction would take up a significant portion of next year's tax adjustments, but current developments have changed that outlook.
The anticipated 15% tariffs from Trump are likely to inflict significant economic damage, pushing businesses to reassess their financial strategies and market positioning.
The postponement of the €1bn VAT reduction for the hospitality sector until July 2026 aims to provide the government with flexibility to implement additional tax cuts in the Budget.
Finance Minister Paschal Donohoe's earlier statements suggested that the VAT change would consume a substantial portion of next year's tax package, but recent developments indicate a shift from that expectation.
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