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Portugal’s trade deficit widened to €2.98 billion in August 2025, up from €2.67 billion a year earlier, as exports fell 1.3% to a four-year low of €5.10 billion. The decline was driven mainly by fuels and lubricants (-25.6%), partially offset by transport equipment (+10.8%). By destination, exports dropped to Spain (-5.8%) and the Netherlands (-22.2%), largely due to fuel and lubricants, and to Germany (-9.9%), mainly machinery and other capital goods. Exports to the US, however, rose 36.5%, led by industrial supplies mostly linked to processing trade (work on order without transfer of ownership). Imports increased 3.1% to €8.08 billion, supported by purchases of industrial supplies (+19.4%) and transport equipment (+18.7%), while imports of fuels and lubricants fell (-28.5%). By origin, imports from Ireland surged 615.9%, largely industrial supplies linked to processing trade, while imports from Germany rose 22.2%, driven mainly by airplanes and passenger cars.