A recent survey conducted by the Portuguese Industrial Association (AIP) and submitted to the Ministry of Economy reveals a noticeable decline in demand, with cancellations and suspensions of orders attributed to tariffs imposed by President Donald Trump.
According to the survey findings, 14% of participating companies predict a revenue decrease between 10% and 20% in the coming months. Furthermore, 58% estimate a reduction ranging from 20% to 35%, while 28% anticipate a drop exceeding 50%.
The companies express concern over the “geopolitical implications arising from trade wars,” emphasizing that a “government response plan should focus on businesses whose products are most affected by U.S. customs policies, rather than applying a blanket approach across the sector.”
Businesses are advocating for alignment between Portugal’s positions and the decisions of EU member states in the realm of common commercial policies and bilateral negotiations with the U.S. They recommend that “negotiation measures be adopted initially, considering retaliation only if necessary to avoid market fragmentation, or if deemed essential, focusing on the technological services sector.”
Responses to the survey came from various sectors: textiles and apparel (27%), ceramics and glass (26%), metalworking (14%), machinery and equipment (14%), beverages (14%), and others (5%).
AIP noted that the most adversely affected sectors include chemical industry, mineral products, machinery, textiles, plastics, and agri-food products.
“It is noteworthy that within these sectors, some products are more directly impacted than others,” it stated.
AIP mentioned that “in 2024, the structure of goods exports to the U.S.” was dominated by the chemical industry (including pharmaceuticals), accounting for 24.9%, followed by mineral products (20.4%), machinery and electrical appliances (10%), textiles (8.2%), plastic and rubber (8%), metallurgy and metalworking (5.8%), and wood (3.9%).
“The mineral products category (including petroleum products) experienced a 57.6% year-on-year decline in exports, while the metalworking sector (machines and appliances) saw a 43.7% reduction,” it reported.
The Ministry of Economy is set to meet with business associations from various sectors today and on Wednesday to assess “the impact and mitigation measures” for the tariffs announced by U.S. President Donald Trump last Wednesday, imposing a 20% charge on products imported from the European Union, in addition to the existing 25% tariffs on the automotive, steel, and aluminum sectors.
These new tariffs from Trump are an attempt to boost U.S. industry while penalizing countries for what he described as years of unfair trade practices.
The U.S. tariffs have been imposed on all imports, with additional charges for countries perceived as particularly hostile to trade.
Also Read:
