Portugal’s trade deficit widened to €3.217 billion in May 2025, up from €2.282 billion a year earlier, as imports surged 12.1% to €10.231 billion while exports rose just 2.5% to €7.014 billion. The increase in imports was driven mainly by industrial supplies (+31.3%), particularly chemical products from Ireland and the Netherlands. Excluding these, industrial supplies rose only 1.5%. Transport equipment imports also jumped (+26.3%), especially passenger cars. In contrast, fuel imports dropped sharply (-28.1%) due to lower crude oil prices (-27.7%), despite stable volumes. On the export side, capital goods (+13.7%) and transport equipment (+11.3%) led the growth, especially to Spain and Germany. However, fuel and lubricant exports fell (-31.6%), particularly to the US. Notably, exports to Spain and Germany rose 7.1% and 12.7% respectively, led by strong demand for capital goods and transport equipment.