Frederico Falcão, president of ViniPortugal
Portuguese wine producers are facing a challenging year in the United States market due to new tariffs imposed by the Trump administration. Since the beginning of the year, Portuguese wine exports to the U.S. have dropped by 5.2 million euros, according to data from ViniPortugal, the national wine promotion board. This decline coincides with Donald Trump’s second term as president and his administration’s decision to impose additional tariffs on European alcoholic beverages.
Between January and July, sales of Portuguese wine to the U.S. fell by 8.6% compared to the same period last year, totaling 55.58 million euros. Despite this significant drop, the U.S. remains Portugal’s second-largest export market for wine, behind only France.
The situation escalated on March 13, when President Trump threatened a 200% tariff on European wines, champagnes, and other alcoholic drinks in response to EU tariffs on American whiskey. After initial negotiations, a 10% tariff was implemented on April 5 for several European products, including wine. Further talks led to an agreement for a 15% tariff starting in early August, which at first did not include wine. However, on August 21, the administration reversed course and included wine in the new tariff regime effective September 1.
Frederico Falcão, president of ViniPortugal, explained that this uncertainty caused many American importers to suspend orders, leading to a sharp decline in exports. He noted that while export value dropped by 8.6%, the volume fell by only 2.9%. This suggests that Portuguese producers have been lowering prices to maintain sales volume during the period of the 10% tariff.
If the 15% tariff remains in place, it is likely that Portuguese wine exports will continue to fall through the end of 2025, though it is difficult to predict the exact impact. Some U.S. importers have indicated they may absorb part of the price increase, which could lessen the effect on consumers.
Ana Isabel Alves, director general of ACIBEV (the Portuguese Wine and Spirits Association), pointed out two additional challenges: a weaker dollar and declining wine consumption in the U.S., which has fallen by about 6%. She said importers have been hesitant to place orders because it takes about three weeks for shipments from Portugal to reach America and during that time the dollar lost about 15% of its value.
Both ViniPortugal and Portugal’s Institute of Vine and Wine hope that ongoing negotiations between Brussels and Washington will result in Portuguese wine being exempted from these tariffs, as has happened with products like cork and generic medicines. However, if tariffs remain at 15%, Falcão expects further declines in exports but notes that some importers’ willingness to share costs could soften the blow.
The latest figures show that overall Portuguese wine exports reached 544.65 million euros in the first seven months of this year, down just 0.5% from last year. While more liters were sold (+2.7%), average prices fell from 2.73 euros per liter to 2.65 euros—a drop driven largely by lower prices in the U.S.
ViniPortugal has set a target of reaching 1.2 billion euros in exports by 2030 and raising average prices to 3.19 euros per liter. Falcão says these goals remain but acknowledges that strategies are being adjusted in response to current market conditions.
Other markets have also influenced Portugal’s export performance this year. Sales to Russia dropped by more than a third between January and July, though official data is limited due to indirect trade routes and lack of recent import statistics from Russia itself.
In contrast, Angola saw a strong recovery with sales up by over a third compared to last year. Angola is traditionally Portugal’s largest export market by volume for wine but had experienced declines in recent years. The rebound is attributed to improved economic conditions in Angola and reduced promotional activity by competitors.
Despite these mixed results across different markets, industry leaders agree that any sustained loss in U.S. sales will have a significant impact on Portugal’s overall wine sector performance due to the size and importance of the American market for Portuguese producers.
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