Ahead of a social concertation meeting, the president of the Confederation of Farmers of Portugal (CAP) expressed concern over the “wave of tariffs” announced by the U.S. administration, noting that it will have “a significant impact on the global economy,” particularly affecting the growth, or reduced growth, of the global economy.
Regarding the agriculture sector, Álvaro Mendonça e Moura emphasized that Portugal exports “about 100 million euros worth of wine to the United States,” representing “a little more than 10% of the total” wine exports.
“Therefore, it obviously causes us great concern,” he reiterated, also voicing worries about the impact of tariffs on exports of cork and olive oil.
Donald Trump announced new 20% U.S. tariffs on products imported from the European Union on Wednesday, in addition to existing 25% tariffs on the automotive, steel, and aluminum sectors.
The president of CAP underscored the importance of being “aware” of the need to “restore the relationship with the United States” in the short or medium term, while emphasizing that “the first reaction” should involve “seriously considering” ways to “compensate” for this impact.
“And we are counting, of course, on the support of the State in promoting exports because it is not only the U.S. market that concerns us,” he indicated, pointing to “increased competition from all global wine producers in other markets.”
“The competition will be much tougher,” he warned, stressing that there will be “a global trend to divert [exports] to other markets” beyond the U.S. He also urged the country to seek other export markets, adding that “it is very important for the State to support this effort.”
Therefore, CAP argues that “at this moment” support should be given to the most affected sectors, particularly those mentioned earlier, and deemed it “normal” for the European Union to react to the announced tariffs.
The Ministry of Economy is set to meet next week with 16 business associations from various sectors to assess “the impact and mitigation measures” regarding the tariffs announced by the U.S. President, announced the executive today.
The new tariffs from Trump are an attempt to grow the U.S. industry while punishing countries for what he described as years of unfair trade practices.
The new tariffs have been imposed by the United States on all imports, with surcharges for countries considered particularly hostile to trade.
