Lisbon, March 13, 2025 (Lusa) - Portugal's wine producers are apprehensive about the impact of the 200% tariffs announced by the US, one of the country's main markets, and hope that the European Commission will act to resolve the situation, while expressing their frustration at Donald Trump's threats.
The US president on Thursday threatened the EU with tariffs of 200% on champagne and other wines and distilled drinks if the EU's planned 50% tariff on US whisky is not dropped.
"This news cannot be considered good; quite the opposite," said the president of Companhia das Lezírias, Eduardo Oliveira e Sousa, in statements to Lusa. "Our main export market, if we include Port wine, is the US. If we remove port, the US is in second place and Brazil is in first."
The tariffs, he added, "have a direct and brutal impact on our exports, which will be reflected in European competitor countries, which means less commercial and internal competitiveness."
Even so, Oliveira e Sousa, a former president of the Confederation of Farmers of Portugal (CAP), said that he hoped that this is "another one of the bombs that President Trump throws in the air and then regrets."
Oliveira e Sousa called for an immediate but measured response from EU officials to ensure that no door is closed.
At the same time, he warned that US tariffs on wines from the EU would have an impact on the entire chain, including cork, of which Portugal's is a major producer.
Companhia das Lezírias, a state-owned company that has around 130 hectares of vineyards, said that it was not easy to anticipate the impact of tariffs, arguing that other producers could seize the opportunity to enter or expand their presence in the US market, taking some of Portugal's current share.
The director of Caves da Montanha, Alberto Henriques, said that tariffs would have a big impact on the company, which has been exporting to the US for over 40 years and which has the country as one of its main markets. However, he challenged Trump to go ahead with the tariffs.
"These days, President Trump threatens everyone with tariffs," he said. "Let him not threaten this time; let him do what he thinks he should do. Portugal existed before the US.
"When he leaves we'll have our arms wide open to continue buying from the US, receiving them and selling to them," he said of EU-US trade in general.
For Henriques, it's "a question of dignity" and that's why Portugal should not bow before "threats and reveries" from the US.
Caves da Montanha, which sells sparkling wines, liqueurs, brandies, spirits and waters, also emphasised that there are no commercial alternatives to some major markets, such as the US, but that the company's strategy will continue to be to open up new markets and focus more on other geographies.
"When you have a knife to your chest, you have to advance towards the knife and not against the wall," he insisted.
The executive director of Sogrape, João Gomes da Silva, told Lusa that any measure that creates uncertainty represents a challenge, but argued that the solidity of the group's brands, combined with the interest in Portuguese wines in the US "will allow us to overcome any obstacles and continue to grow in this market."
According to Sogrape's preliminary 2024 figures, exports to the US accounted for around 20% of total sales.
Sogrape, which owns port and wine brands such as Casa Ferreirinha, Sandeman, Mateus and Gazela, has adopted a "preventative approach" to tariffs, having already reinforced the stock of Evaton, its importer in the US.
"Anticipating orders in periods of uncertainty allows us to ensure continuity of supply and respond in the best way to our customers' needs," he said. "For critical products, we've reinforced our stock to guarantee around six months of availability."
In the first half of 2024, Portugal's wine exports were worth a total €965.8 million, according to ViniPortugal, the main sector association, from 347.5 million litres.
The main export markets are France, the US, Brazil, the UK and the Netherlands.
PE/ARO // ARO.
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