How Trump's Tariffs Could Open New Doors for Portuguese Wines

Impact of US Tariffs on Portuguese Wines

The president of the Douro Intermunicipal Community (CIM) has raised concerns regarding the 20% tariffs imposed by the USA on EU wines, warning of an immediate impact on the wine industry. Luís Machado, who also leads the Santa Marta de Penaguião City Council, emphasized the need for the region to explore new markets to mitigate the effects of these tariffs.

A Market at Risk

The USA has long been a key market for Portuguese wines, particularly from the Douro Demarcated Region, ranking among the top five export destinations by volume and value. In 2024, approximately €36 million worth of Port wine was exported to the USA, reflecting a 6.5% increase from the previous year. However, the newly announced tariffs threaten to disrupt this growth.

A Chain Reaction

Machado warned of a potential chain reaction affecting both commerce and production, leading to greater constraints on North American imports. He predicted that these tariffs would cause significant harm to the Douro economy, already facing challenges in wine sales.

Seizing Opportunities

Despite the challenges, Machado views this situation as an opportunity for Douro to seek emerging markets across Eastern Europe, Asia, and Latin America. He believes that there are trustworthy administrations to partner with, which could help navigate the changing international landscape influenced by the policies of former President Trump.

Industry Response

The European Committee of Wine Companies (CEEV) echoed concerns, labeling the tariffs as a severe blow to the industry, predicting layoffs and delayed investments in a sector that accounted for 28% of total EU wine exports to the US in 2024, valued at €4.88 billion.