Posted By Global Banking and Finance Review
Posted on January 21, 2025
LISBON (Reuters) - Europe should establish and strengthen dialogue with the new U.S. administration to avoid an escalation of tariffs that would harm consumers, especially the least wealthy, Portugal's finance minister said on Tuesday.
President Donald Trump, who took office on Monday, did not immediately implement the wide range of tariffs he had promised, but said they were still an option and indicated that tariffs of 25% on Canada and Mexico could be imposed as early as Feb. 1.
Portuguese Finance Minister Joaquim Miranda Sarmento said that Trump had not specifically targeted Europe in his first term, increasing tariffs on Chinese goods instead, and it was premature to say what his policy towards Europe would be now.
"We will analyse the decisions of the U.S. administration and try to strengthen economic ties," he told reporters in Brussels.
"It is necessary to have a constructive attitude of dialogue, but also naturally in defence of what is the interest of Europe and its member states," he said, adding that protectionism would only harm consumers in the countries or blocs that were raising tarriffs.
The United States is the main destination for Portuguese exports of goods, such as medicines, cork, clothing and footwear, outside of the European Union.
In the first nine months of 2024, Portuguese exports of goods to the United States increased by 8.9% to 4.9 billion euros, while a record number of American tourists also propelled growth in exports of services.
(Reporting by Sergio Goncalves; Editing by Alex Richardson)
