Portugal Urges Stronger EU-US Dialogue to Prevent Harmful Tariffs

Portugal's Call for Dialogue

Portugal's Finance Minister, Joaquim Miranda Sarmento, emphasized the need for Europe to foster and reinforce dialogue with the new U.S. administration to avert an escalation of tariffs that could negatively impact consumers, particularly the less affluent. This statement was made during a press conference in Brussels on Tuesday.

The Current Situation

With President Donald Trump now in office, he has yet to implement the extensive tariffs he had previously proposed. However, he indicated that tariffs could still be an option, particularly suggesting a 25% tariff on imports from Canada and Mexico as early as February 1. Sarmento noted that during Trump's first term, Europe was not the primary focus of his tariff increases, which were mainly directed towards Chinese goods. He added that it is too early to determine the new administration's stance on Europe.

Importance of Economic Ties

Sarmento remarked, "We will analyze the decisions of the U.S. administration and try to strengthen economic ties." He stressed the importance of a constructive dialogue, while also defending the interests of Europe and its member states. He pointed out that protectionism would ultimately harm consumers in regions implementing such tariffs.

Trade Relations with the U.S.

The United States remains the primary market for Portuguese exports outside the European Union, with significant exports including medicines, cork, clothing, and footwear. In the first nine months of 2024, Portuguese exports to the U.S. rose by 8.9%, reaching 4.9 billion euros. Additionally, a surge in American tourism has positively influenced the growth of Portugal's service exports.