Lisbon is urging businesses to maintain ties with the United States despite escalating trade tensions and the impact of tariffs imposed by the Trump administration. While the US market isn’t defined by volume for Portuguese exports, officials emphasize its significant value and purchasing power.
Recent data indicates that over a third of American companies operating in Portugal have experienced negative consequences from the tariffs implemented by former President Trump. A survey conducted by the Luso-American Chamber of Commerce (AmCham) revealed that 37% of managers reported increased costs or reduced competitiveness for their products and services due to the tariffs. A small percentage, 3%, indicated a benefit from reduced competition, while 39% reported no significant impact and 21% stated the question was not applicable.
The impact of the tariffs was also measured by the survey, with 34% of respondents reporting ‘some’ impact and 8% experiencing ‘significant’ impact. Conversely, 34% felt ‘little’ impact, and 16% reported ‘no’ impact.
João Rui Ferreira, the Secretary of State for Economy, stressed the importance of continued engagement with the US market, despite the ongoing commercial instability. “The US plays a very important role. Regardless of the circumstances, it’s a market where companies must continue to invest,” he stated. He further elaborated that the US market is valued for its purchasing power, not necessarily its volume. “It’s not about how much we export, but the added value. It’s an important part of profitability, a market with significant purchasing power.”
Ferreira Dias highlighted the importance of the average export value in maintaining profitability and competitiveness, adding that Portugal has a “umbilical” relationship with the US that needs to be preserved.
The AmCham survey, carried out by PwC, also explored how companies adjusted their strategies in response to the tariffs. 26% of respondents reported making adjustments, while the remaining 74% did not. Mitigation strategies included establishing commercial agreements and strategic partnerships (50%), optimizing internal costs (40%), and relocating production (30%).
Looking ahead, sentiment among American managers in Portugal is mixed. 16% expressed pessimism and 2% ‘very pessimistic’ about the performance of the Portuguese economy. However, a substantial 47% are optimistic, with 4% ‘very optimistic’. 31% remain neutral.
Regarding their own businesses, 78% anticipate an increase in sales volume, while 22% expect to maintain current levels. 65% foresee new investments in their companies. In terms of employment, 54% predict an increase in hiring, 32% expect to maintain current staffing levels, and 12% anticipate a reduction in the workforce.
The primary challenges identified by managers operating in Portugal include market competitiveness, regulatory complexity and bureaucratic processes, and cybersecurity. For the country as a whole, the biggest hurdles are perceived to be regulatory complexity and bureaucracy, difficulties in attracting and retaining qualified talent, and economic instability/uncertain recovery.
The impact of US tariffs on Portuguese exports has been significant. According to data released in December 2025, exports to the United States fell by €50 million in the third quarter, the lowest level since mid-2023. Cumulative exports to America between January and September decreased by 6.8%. The tariffs currently consist of a base duty of 15% on most EU goods, with punitive 50% levies remaining in place on steel and aluminum. Sectors particularly affected include fuel, machinery, transport equipment, chemicals, and pharmaceuticals.
Despite these challenges, the US remains Portugal’s fourth-largest customer, accounting for 6.2% of all goods sold abroad. The Portuguese government has responded with a €10 billion rescue package, known as Programa Reforçar, aimed at shielding companies and protecting jobs. However, a recent study by the Porto Commercial Association indicates that the North of Portugal will be the most affected region, potentially losing almost 3,300 jobs. The study recommends that the government give “special attention” to this region.
The situation is further complicated by broader global trade dynamics. A report from the Information Technology and Innovation Foundation suggests that export controls, rather than helping US firms, have inadvertently aided Huawei and harmed American companies. President Trump’s tariff policy, which included a baseline 10% tariff on all imports to the United States and a 20% tariff on EU products as of April 2025, has triggered economic repercussions across global markets. The Bank of Portugal has begun assessing the potential damage to the nation’s economy.
In August 2025, S&P Global Ratings upgraded Portugal to ‘A+’, citing the economy’s resilience and a shift in growth drivers from investment to exports. However, the agency also acknowledged the impact of US tariffs on Portuguese goods.
