Engineering Industries Ireland (EII) is calling for the establishment of a State-backed Export Credit Insurance Scheme.
The Ibec group, which represents the engineering sector, says the scheme is needed to mitigate risks in the current trading environment, such as the recently introduced 15% US export tariff.
The group warned in their 2026 Budget submission that the US import tariffs of 15% on EU-manufactured industrial products, auto parts and semiconductors, introduced in July, are placing significant pressure on key Irish export margins and undermining sectoral competitiveness.
Export credit insurance (ECI) protects an exporter of products and services against the risk of non-payment by a foreign buyer.
EII, members account for €8.8bn in exports (3.6% of national exports), 10,800 enterprises employing 50,751 people, and a 65% share of indigenous companies.
The body also flagged that 71% of engineering firms identify attracting and retaining talent as a top priority.
To bridge skills gaps and drive a low-carbon, innovation-led economy, the group says Ireland must update its National Skills Strategy, promote lifelong learning, and improve real-time labour data for workforce planning, according to the submission.
Pauline O’Flanagan, Director of EII, said: “Ireland’s engineering firms are on the frontline of the US tariff escalation.
"Many are facing immediate financial strain and growing uncertainty about future trade prospects.
"We need a strong and strategic response to help these businesses navigate global volatility and stay competitive, while also supporting market diversification.
"Despite being one of the EU’s most open economies, Ireland remains one of the few Member States without a fully fledged export credit insurance scheme.
"This puts Irish exporters, particularly small and mid-sized enterprises (SMEs), at a disadvantage compared to their European peers."
He added: "EII has consistently called for the introduction of a national scheme that reflects the realities of modern international trade.
"In today’s climate of geopolitical risk, supply chain reconfiguration and intensified global competition, that call has become more urgent than ever. It is time to level the playing field.”
