Portugal’s trade deficit widened to €2.86 billion in March 2026, up from €2.51 billion a year earlier. Imports surged 11.6% to €10.37 billion, matching the record high set in July 2025, driven by strong demand for transport material (up 20.2%), particularly passenger cars from Spain, as well as machinery and other capital goods (up 20.0%), mostly from the Netherlands. Imports of industrial supplies also rose 8.5%, led by chemicals and metals from Spain and the Netherlands. Exports climbed 10.6% to €7.50 billion, the highest since July 2024, fueled by increased sales of machinery and capital goods (up 17.4%), primarily to Germany, as well as transport material (up 12.7%), boosted by passenger car exports to Turkey, and consumer goods (up 12%), particularly to Spain and France. In the first quarter of 2026, the trade deficit widened to €8.42 billion from €6.30 billion in the same period of 2025, as imports outpaced export growth.