The Textile and Clothing Association Credits EU for Mitigating Trade Tensions
On July 29, 2025, concerns regarding the impending 15 percent U.S. tariffs on European imports have intensified, particularly affecting industries in northern Portugal. The tariffs, scheduled to commence in August, threaten to spark significant challenges for key sectors including arms, wine, pharmaceuticals, and luxury goods, reports 24brussels.
The arms industry is notably vulnerable, with 71 percent of Portugal’s arms exports, valued at 84 million euros (US$96.8 million) in 2024, directed towards the United States. Most of these exports originate from the Browning factory in Viana do Castelo. In addition, wine producers are bracing for impact, as the U.S. represents Portugal’s second-largest wine export market. In 2024, exports of Douro wines, including Port, to the U.S. reached 36 million euros.
Recently, over 500 wine producers in the Douro region protested in Peso da Regua, citing falling grape prices, surging costs, and contract cancellations. They are urging government intervention to avert a potentially catastrophic harvest. Joao Faria, head of the Portuguese Association of Jewelry and Watchmaking, also expressed concerns as the duty on high-value items, such as luxury watches, will increase from 5 percent to 15 percent. For instance, a Rolex priced at 20,000 euros would incur duties of 3,000 to 4,000 euros, a substantial rise from the previous 1,000 euros.
The textile and apparel sectors are awaiting further clarification on taxation structures that will affect their competitiveness. Mario Machado of the Portuguese Textile and Clothing Association referred to the trade deal as “bad but necessary,” acknowledging the European Commission for preventing an escalation into a more extensive trade conflict.
As these tariffs threaten to reshape the landscape of Portugal’s trade relationships, industry leaders are calling for sustained dialogue and intervention to safeguard their interests during this uncertain period. The broader implications of these tariffs extend beyond Portugal, impacting European economies at large as they adapt to evolving trade dynamics.
