Group 1 - The core issue facing the Portuguese wine industry is the uncertainty caused by the U.S. government's announcement of a 30% tariff on EU products, which has led to a halt in orders from the U.S. market, a key export destination for Portuguese wines [1][2] - The Favaios Cooperative, established in 1952, is one of the most representative sweet wine producers in Portugal, with over 500 member farmers. The cooperative's exports to the U.S. accounted for approximately 10% of its total exports last year [1] - The cooperative had anticipated a doubling of exports to the U.S. by the end of this year, but the new tariff policy has made this goal unattainable, leading to concerns about the recovery of investment costs in grape growing and winemaking [1][2] Group 2 - The impact of the tariffs extends beyond the cooperative to the local economy, affecting not only wine producers but also related businesses, such as bakeries, as the anxiety over U.S. tariffs spreads throughout the community [2] - The U.S. is projected to be the largest customer for the Porto and Douro Valley regions in 2024, making the recent tariff news particularly damaging, as it has led to order cancellations and a significant decline in exports [2] - According to the Portuguese Wine Association, exports to the U.S. decreased by 9.7% in the first five months of this year, highlighting the immediate negative effects of the tariffs on the industry [2]