City on the Tagus River (6)

I believe the answer is:

toledo

(Other definitions for toledo that I've seen before include "Spanish city famous for manufacture of steel blades" , "Covering, hiding" , "City in central Spain famous for swords" , "Maker of 3 [[COLD STEEL]" , "Spanish city famous for weapons" .)

I've seen this clue in The Wall Street Journal.

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