Despite a 12.3% decline due to tariffs, the US market "remains a strategic focus" for footwear. Association describes "difficult" period for companies, but with gains over the competitors.
After two years of declining foreign sales, the Portuguese footwear industry managed to reverse this trend and close 2025 with slight growth of 0.8%, to €1.718 billion, through the sale of 68 million pairs of shoes abroad.
The year was “atypical” because of the trade war, which has since been ruled ‘illegal’ by the US Supreme Court, and sank exports across the Atlantic, but the executive director of the employers’ association (APICCAPS – Portuguese Footwear, Components, Leather Goods Manufacturers’ Association) anticipates a “normalisation” in 2026.
With the industry’s eyes focused these days on Milan, where the world’s most important trade fair for the sector began on Sunday and ends on Tuesday, in an interview with ECO, Paulo Gonçalves talks about a sector that already exports more than 90% of its production to 172 countries and which, through the agreement between the European Union (EU) and the Mercosur countries, is putting Brazil “on the radar for the first time, especially for high-end segments”.
The slight growth in exports in 2025 was mainly sustained by performance in European markets, which grew by 3.3%. More specifically, which countries drove the sector?
In 2025, the footwear sector exported 60 million pairs to Europe, worth 1.42 billion euros. Growth was recorded in Germany (+8.4%, to €416 million), France (+1%, to €342 million), Spain (+10.3%, to €183 million) and Sweden (+6.2%, to €50 million).
On the other hand, there were declines in the Netherlands (-3.2% to €192 million) and Denmark (-7.2% to €65 million). It was a difficult year for our companies, but we ended on a positive note and gained market share from our competitors.
Sales to the US fell by 12.3% to €84 million in 2025, interrupting a growth trajectory in what was the industry’s sixth largest market and where sales had risen by 25% in the previous three years. They had said they would not give up on the US, even with Donald Trump. After these results, what is the feeling among manufacturers?
The year 2025 was atypical. Uncertainty about new trade policies penalised the sector and the US market itself declined. Even so, the US remains a strategic market for Portuguese footwear. We believe it is a market where we will see sustained growth in the coming decades.
Do you expect the US to continue to reduce its footwear purchases from Portugal this year?
We hope that 2026 will be a year of normalisation. The new trade agreement tends to favour Portugal over many major players [the customs agreement between the European Union and the US provides for a 15% tariff on European products vs. 50% for Brazil, 30% for China and over 20% for India and Vietnam] and we want to take advantage of this opportunity.
Apart from tariffs and losses in the US, what are the other major threats to Portuguese industry?
The sector’s performance is conditioned by global economic activity. We are experiencing a complex economic period, with modest growth, and the reference markets, especially in Europe, are performing poorly, which concerns us.
On the contrary, where do you see the greatest opportunities at this stage, which could even offset the losses in the US?
The sector already exports more than 90% of its production to 172 countries. Strategically and commercially, Europe and North America remain central, as they account for a large part of the demand for quality footwear. In addition, markets such as Colombia, South Korea and Japan deserve immediate attention due to their dynamics and purchasing power.
If the trade agreement between the European Union and India is said to be “dangerous” for national companies, the agreement with Mercosur opens up good prospects for tackling the Brazilian market, which currently has customs duties of around 35%. What is its potential and in which segments?
Due to high tariffs, Brazil has historically been largely inaccessible to Portuguese companies. The agreement with Mercosur opens doors, but liberalisation will be gradual and may even take decades to consolidate. It is not yet a priority market, but it is now appearing on our radar for the first time, especially for high-end segments.
Although the growth of Portuguese exports in 2025 was short, it compares with contractions in major competitors such as Italy (-1%) and Spain (-3%), and in large producers such as China (-11%), Turkey (-13%) and Brazil (-2%). What factors contributed to this gain in market share for the national industry, particularly in relation to Italy and Spain?
The market is evolving rapidly. Portugal stands out for its continuous investment in companies, productive flexibility and sustainability, which strengthens its responsiveness. Under the Recovery and Resilience Plan (PRR), the footwear sector has invested more than €100 million in recent years, a clear sign of confidence for the markets.
We have now expanded the market and are targeting new customers in the defence, health and professional footwear sectors. This is a path we intend to pursue further.
How does the average price of a pair of Portuguese shoes for export compare with Italian shoes, which are the most highly valued worldwide?
We do not yet have all the final data for 2025 that is comparable with other countries. Historically, Portuguese footwear has been among the highest average export prices, even ranking second among the main international producers [according to data published in the World Footwear Yearbook].
In 2024, the average price in Italy was $68.14 per pair and in Portugal $27.57 per pair. We still have a long way to go. However, as Portugal invests in alternative materials to leather, this difference may increase. We are fine with that.
(ECO travelled to Italy at the invitation of APICCAPS – Portuguese Association of Footwear, Components, Leather Goods and their Substitutes Manufacturers)