Else Beekman
The latest announcement from former US President Donald Trump has sent shockwaves through Spain’s steel and aluminium industries. Trump has declared a 25% tariff on all imports of these metals into the United States, a move that could severely impact Spanish exports worth nearly €400 million.
Spain, the tenth-largest exporter of steel to the US, now faces significant trade uncertainty, with the European Union considering a response.
Spain’s steel and aluminium trade at risk
According to US public administration data, Spain exported 290,000 tonnes of steel to the United States in the past eleven months, amounting to a total value of $263 million (€255 million). Despite a 4% increase in US steel imports overall, Spanish steel exports have declined by 2.2% compared to the previous year. In the aluminium sector, Spain ranks 28th in exports to the US, having shipped 19,664 tonnes in 2024, valued at $132.93 million (€128.9 million).
Global trade tensions intensify
Trump’s tariff decision follows a pattern of protectionist policies that have strained international trade relations. His previous administration imposed tariffs on steel and aluminium in 2018, triggering a global trade dispute. While the Biden administration later altered import regulations, Trump’s latest move could reignite economic tensions. The United States’ largest steel suppliers—Canada, Brazil, and Mexico—will also be affected, as will key aluminium exporters such as Canada, the United Arab Emirates, and China.
Possible EU retaliation
The European Union has swiftly condemned the tariff plan, arguing that there is no justification for such measures. France has led the charge, demanding that the European Commission impose immediate counter-tariffs on American goods in response. While Brussels awaits official confirmation from Washington, EU officials have warned to take retaliatory measures if necessary to protect European businesses, workers, and consumers.
A political bargaining tool?
Trump has hinted that he won´t enforce the tariffs immediately, suggesting his government could use these as leverage in trade negotiations. Similar tactics were seen last week when he threatened tariffs on Canada and Mexico but later postponed them in exchange for symbolic policy changes. Mexico agreed to deploy additional troops to its northern border, while Canada pledged increased investment in border security.
Economic consequences and industry reactions
The Spanish steel and aluminium industries are bracing for potential losses, with businesses concerned about the financial strain of higher tariffs. If implemented, these duties could disrupt supply chains, increase costs for US industries reliant on foreign metals, and further escalate trade tensions between the EU and the United States.
The European Commission has also pointed out that tariffs ultimately act as a tax on domestic consumers, increasing costs for businesses and contributing to inflation. Moreover, the uncertainty surrounding trade policies could impact economic stability and disrupt global market efficiency.
China’s stance on trade barriers
China has also voiced strong opposition to Trump’s tariff policies, emphasising that trade wars benefit no one. Chinese officials have reiterated their commitment to an open and rules-based trading system, warning that escalating trade tensions could have long-term consequences for global commerce.
Calls for a strategic negotiation approach
Luis de Guindos, Vice President of the European Central Bank, has urged a measured approach to negotiations with the US to prevent a full-scale trade war. Speaking to RTVE, he emphasised the importance of maintaining an open attitude while ensuring that Europe does not succumb to undue pressure.
According to De Guindos, Trump’s administration is using economic measures to pursue political goals, marking a significant shift in US economic policy. He also warned that additional deregulation in banking and fiscal policies under Trump could impact global markets, including Europe.
De Guindos highlighted that tariffs act as an indirect tax on trade, potentially strengthening the US dollar while destabilising financial markets. He stressed the need for strategic, level-headed negotiations to mitigate risks, stating, “Keeping a cool head is crucial. We cannot allow ourselves to be overwhelmed, but we must remain open because the US is an important economic partner for Europe.”
Also read: Trump’s trade war: How tariffs could impact Spain