Trading Partner Portal: Portugal
Overview
Trade Overview
Portugal lies on the Atlantic coast in southwestern Europe, with Spain as its neighbor and surrounding its entire boarder. It is closely tied, culturally and geographically, with its Mediterranean and European neighbors. It hosts a variety of climates from coastlines, mountains, and lowlands, and has nearby island autonomous archipelagos of Maderia and the Azores. Its capital city Lisbon is the cultural and economic center, as it has a rich maritime history. Britannica
Portugal is classified as a high-income country that has developed a strong service market-based economy that accounts for approximately 66% of its GDP. In 2024, its population totaled 10.7 million people, with nominal GDP at $308.68 billion. Like other European countries, a great deal of Portugal’s trade is within Europe and surrounding countries; however, the United States is Portugal’s fourth largest export destination. Travel services, renewable energy, and tourism have been key industries in economic growth since the Covid-19 pandemic, with renewable energy expected to grow by 20% by 2026. OEC World, Statista, U.S. Department of Commerce.
U.S. – Portugal Trade
Two-way goods trade between the U.S. and Portugal totaled $ 9.02 billion in 2025, with the U.S. exporting roughly $2.77 billion to Portugal. Top exports to Portugal were oil and gas ($806 million), transportation equipment ($557 million), agricultural products ($294 million), chemicals ($261 million), and computer and electronic products ($186 million).
In this same year the U.S. imported $6.26 billion in products from Portugal. The top imports were chemicals ($1.97 billion), petroleum and coal products ($583 million), plastics and rubber products ($443 million), apparel and accessories ($427 million), and computer and electronic products ($278 million). U.S. Department of Commerce
Services trade between the U.S. and Portugal was $6.18 billion in 2025, with exports totaling $2.24 billion, top exports were travel, transport services, financial services, telecommunications, computer & information services, and other business services.
Services imports from Portugal to the U.S. totaled $3.94 billion in the same year. Top imports were travel, transport services, other business services, telecommunications, computer & information services, and financial services.
Portugal – California Trade
California continues to be the state with the largest Portuguese population. About 390,000 Portuguese Americans live in California, with most from the Azores islands. The first wave of Azorean immigrants came in the late 1900s to 1920s seeking better opportunities in America. On the west coast in California there are Portuguese communities in San Francisco, Oakland, San Jose, Santa Cruz, as well as in dairy farming areas in the Central Valley, the Los Angeles Basin, and San Diego, in connection to Portuguese fishermen and settlers emigrating to California from the Azores. The oldest company in Portugal is Azores Airlines.
In 2025, California exported a total of $75 million in products to Portugal, with top products being computer and electronic products ($18 million), non-electronic machinery ($12 million), transportation equipment ($7 million), fabricated metal products ($7 million), and agricultural products ($5 million). U.S. Department of Commerce
California is also one of the top U.S. states for importing for Portugal, with total imports to Portugal being $510 million. Top products were plastics & rubber products ($120 million), wood products ($117 million), apparel & accessories ($54 million), leather & allied products ($28 million), and chemicals ($28 million). trade.gov
FDI – Portugal
The foreign direct investment position from the U.S. into Portugal was roughly $1.65 billion in 2024. Portugal FDI dd not have any reportable position as of 2024, but has supported 1,600 jobs, invested $56.2 billion in innovative research and development, and contributed $24 million to expanding U.S. exports. Key sectors for investment would be in energy, software and IT services, hotels and tourism, pharmaceuticals, and business services. Select USA
Trade Agreements
Trade Agreements and Issues
Portugal has many trade agreements through its membership with the EU, which gives it free trade agreements with EU member countries, and outside agreed upon treaties. Through the customs union it has trade agreements with New Zealand, Singapore, South Korea, Japan, the U.S., and others. It is also currently negotiating and renegotiating with China, Chile, the Philippines, and Singapore.
Portugal has steadily beat expectations for economic growth within the EU, however, is does face issues of possible overvalued real estate and increased interest rates as of 2023. The CFP, Public Finance Council has also noted that productivity growth is a large concern macroeconomically, as it could mean low wages for Portuguese workers. U.S businesses may also face issues of competition with European companies, as they will know the business culture and not have the same the tariffs and regulations. There are currently issues with low birth rates and a growing number of an aging workforce, which can have long-term consequences on the economy.
Events
Events
Azores Delegation Visits CalChamber for Portuguese Heritage Month
The California Chamber of Commerce hosted a gathering with representatives having Azores connections.
Present at the June 24, 2024, meeting was Artur Lima, the vice president of the Azores, who was visiting Sacramento for the presentation of Assembly Concurrent Resolution (ACR) 205 (Aguiar-Curry; D-Winters) in honor of Portuguese Heritage month.
Also present were Diniz Borges, president of the California Portuguese American Coalition, and Cliff Costa, vice president of California Advocates.
Greeting the delegation was Susanne T. Stirling, CalChamber senior vice president of international affairs.
ACR 205 establishes June as Portuguese Heritage month, recognizing June 10 as the Day of Portugal and May 20 as the Day of the Azores. The measure honors the continued influences of Portugal and the Azores communities in California that have established themselves and contribute to the state and its economy.