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Economy

Spain's response to U.S. tariffs on EU imports

Tuesday 08 - 16:35 By: Zahouani Ilham

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The Spanish government has assessed the impact of the new 20% tariff imposed by the United States on all imports from the European Union. According to the Ministry of Economy, Trade, and Industry, the new trade tariffs will affect 80% of the Spanish products sold in the U.S. In monetary terms, this translates to 14.88 billion euros out of the 18.6 billion euros worth of Spanish goods sold in the U.S. last year.

Carlos Cuerpo, the ministry's representative, mentioned that a specific plan will be presented by ICEX to assist and protect nearly 500 Spanish businesses exporting to the U.S. This estimate was shared during a press briefing after a Council of Ministers meeting, which approved Spain's plan to mitigate the impact of the U.S.'s "trade war" launched by former President Donald Trump. Global concerns have increased as further details about U.S. trade policy under President Joe Biden have emerged, confirming the tariffs are more severe than expected.

Cuerpo emphasized that it is too early to determine the exact effect of U.S. trade policy on Spain’s GDP, as the uncertainty surrounding the duration of the tariffs complicates predicting their full impact. This news comes just hours after the European Commission unveiled its collective response to Trump's tariffs.

Spain’s economy, which is less exposed to the U.S. market, with exports to the country representing only 5% of total national exports, could still face secondary effects. Particularly concerning is the automotive components sector, which plays a crucial role as a supplier to German manufacturers that are major U.S. clients.

In 2024, Spain experienced its second-largest trade deficit with the U.S., reaching 10.01 billion euros, only surpassed by 2022’s deficit. The Spanish government had already anticipated a slight growth impact due to the tariffs, reducing its growth forecast to 2.6%. The European Commission has estimated the tariffs could cost the EU a total of 81 billion euros.

Industries such as chemicals, machinery, and energy products are among the most affected, accounting for 67% of Spain’s exports to the U.S. The government has stated that it will monitor the situation closely, adjusting its response as necessary and considering whether additional support measures, such as direct financial aid, will be required.