Portugal's textile and clothing (T&A) industry is trying to negotiate a new deal with the Trump administration to lower tariffs. The new 15 per cent tariffs on European Union (EU) goods went into effect on September 1, and the industry is concerned that products that previously had a lower tariff will now have to pay 15 per cent, while those with a higher tariff will not see a reduction.

According to Ana Dinis, Director-General, Textile Association of Portugal (ATP), the process has been difficult with ongoing negotiations where information seems to change daily. Still, the ATP remains hopeful for a positive outcome soon.

César Araújo, President, National Association of Clothing and Apparel Industries (Anivec), noted, there are various interpretations of the new tariffs, and it's still uncertain which products will be affected and by how much.

According to ATP data, Portugal exported €435 million in textile and clothing products to the US in 2024. The US market accounts for 8 per cent of the sector's total exports, with revenues of around €500 million.

The ATP estimates, the new tariffs could lead to 10,000 layoffs in the textile industry across more than 6,000 companies in Portugal. The Bank of Portugal reported, two years ago, the sector had a turnover of over € 8 billion.

A global leader in commercial credit risk management, Coface believes the new 15 per cent tariff is a compromise that avoids the 30 per cent double tariff initially proposed by the U.S. president. However, it still represents a significant increase from the 1.2 per cent rate applied in 2024.

As part of the new agreement, the EU has committed to investing $600 billion in the US and purchasing $750 billion in US energy products over three years. The feasibility of these commitments has been widely questioned by analysts and European leaders.