Portugal Voices Skepticism on EU-U.S. Tariff Agreement

(MENAFN) Portugal has voiced serious reservations regarding the newly finalized tariff agreement between the European Union (EU) and the United States, labeling it a modest step forward that fails to achieve genuine free trade and imposes heavy costs on both parties.

In an official release, the Ministry of Economy and Territorial Cohesion acknowledged that the pact—which caps U.S. tariffs on European products at 15 percent—may offer some predictability. Yet, it emphasized that "nothing replaces the freedom of trade" and reiterated Portugal's dedication to advocating for the phased removal of tariffs and other trade restrictions.

The Confederation of Portuguese Business (CIP) expressed only “relative relief” over the agreement, stressing that the financial burden is “high for both parties.”

“When a hurricane is expected, one feels happy with a mere storm,” said CIP Director-General Rafael Alves Rocha. Still, he cautioned that the negotiated tariff rates represent a sharp increase from the current average of about 2.5 percent, signaling a setback for exporters and underscoring the disparity between EU and U.S. tariff frameworks.

CIP highlighted that the deal’s outcome is unbalanced, placing European producers at a disadvantage when compared with the average customs duties the EU applies to imports from the United States.

To address potential negative effects, the Portuguese government has rolled out financial aid initiatives designed to support local businesses.

The government pointed to the “Reforcar” program, launched in April to mitigate adverse trade impacts. So far, 14,000 applications have been submitted under the BPF INVEST EU credit line, totaling €3.2 billion (US$3.71 billion), with €2.5 billion approved and €1.6 billion already distributed.

Furthermore, a dedicated credit line, BPF INVEST EXPORT PT, targets export-driven SMEs. It has received 2,600 applications amounting to €1.3 billion, with €600 million approved.

Under the new PT2030 incentive framework, a non-repayable grant line has also been introduced to boost internationalization efforts, focusing on joint ventures and collaborative external market strategies. The ministry announced that the first public calls for collective internationalization projects will launch on July 31.

Despite these interventions, Portugal’s guarded response and critical business reaction reveal wider skepticism within the country about the long-term advantages of the EU-U.S. trade deal—raising concerns that short-term certainty may come at the expense of sustainable economic balance.

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