Peak Ireland?

Ireland’s Diplomatic Challenges and the Lessons for the UK

October 30, 2025

This new study by Policy Exchange issues the stark warning that the UK must heed the lessons of the waning Irish influence in Washington. The Republic of Ireland’s divergences from Washington on core interests across tax, trade, defence and foreign policy have driven a wedge between Dublin and Washington as the Trump Administration recalibrates American diplomacy toward a more reciprocal footing. In this era of conditional diplomacy, the British Government cannot afford to make the same mistakes as Dublin, it must recognise that trade-offs and a broader alignment are the requirements for the maintenance of a close partnership with the U.S.

In the foreword to the report, Hon Ambassador Robert O’Brien, former National Security Adviser to President Trump, writes:

“Ireland has long enjoyed a privileged status in Washington, DC. This has served Dublin well through challenging times…But in an era in which the United States under President Trump is seeking to put the American interest first, the U.S. relationship with Ireland is coming under unprecedented scrutiny.”

“The Trump administration seeks to bring back jobs and production in critical sectors to the United States. But Ireland, a low-tax haven for international business, has gained a huge advantage for its own economy by offering sweetheart tax deals for American tech and pharmaceutical companies to leave our shores for theirs.”

“All the while, despite its professed neutrality, Ireland pursues an increasingly activist foreign policy that is marked by its divergence from everything the Trump administration stands for, particularly in the Middle East.”

“This Policy Exchange report brings together a wealth of information about the Irish model of economics and foreign policy in a dispassionate and forensic way. It should be required reading for American lawmakers, given the special status that Ireland continues to enjoy on the Hill…For strong believers in the Irish relationship, all is not lost. Importantly, this report shows that a growing number of voices in Ireland are worried about the consequences of such an approach.”

The launch of this report was covered by: