Northern Portugal industries face heavy blow from incoming U.S. Tariffs

LISBON, July 29 (Xinhua) -- Industries in northern Portugal are particularly vulnerable to the new 15 percent U.S. tariffs on European imports, set to take effect in August. Key sectors impacted include arms, wine, pharmaceuticals, and luxury goods, Portuguese daily newspaper Jornal de Noticias reported on Tuesday.

The arms industry is the most exposed, with 71 percent of Portugal's 84 million euros (96.8 million U.S. dollars) arms exports in 2024 going to the United States, nearly all from the Browning factory in Viana do Castelo.

Wine is another major concern. America is Portugal's second-largest wine export market and the fifth-largest for Douro region wines, including Port. In 2024, Douro exports to the U.S. market totaled 36 million euros. Over 500 producers in the Douro region recently protested in Peso da Regua, citing plummeting grape prices, rising costs, and contract cancellations, urging government intervention ahead of a potentially devastating harvest.

The watch and jewelry sector is also bracing for impact. Joao Faria, head of the Portuguese Association of Jewelry and Watchmaking, warned that the duty hike from 5 percent to 15 percent on high-value items will have a serious effect. A 20,000-euro Rolex, for instance, will now incur 3,000 to 4,000 euros in duties instead of 1,000 euros.

Textile and apparel firms are awaiting details on how competitors will be taxed. Mario Machado of the Portuguese Textile and Clothing Association called the deal "bad but necessary," crediting the European Commission for averting a wider trade war. (1 euro = 1.15 U.S. dollar) Enditem