Lorraine Williamson
Spanish Prime Minister Pedro Sánchez travels to China and Vietnam to boost exports, reduce trade deficits, and seek new investment amid ongoing US tariffs.
Pedro Sánchez is visiting Vietnam and China this week in a renewed effort to expand Spain’s trade links with Asia. The official mission seeks to increase Spanish exports and reduce the country’s growing trade deficits with both nations.
This visit, while previously planned, has gained added urgency. Global trade flows are being reshaped by US tariffs under President Donald Trump, prompting European countries to explore new routes and partnerships.
Spanish exports—especially in cosmetics, agri-food, and technology—have been hit hard by tariffs of over 40%, making goods more expensive and less competitive in the US.
Facing the fallout of a trade war
The US-led trade war has disrupted global supply chains and forced countries like Spain to adjust. As Sánchez travels east, he is also managing the domestic fallout.
Earlier this week, the prime minister posted on X: “I met with our country’s leading employers and unions to discuss the tariffs proposed by the US administration and the possible domestic and European response. Spain will protect its businesses and workers and continue to champion an open world.”
This stance reflects growing concerns in Madrid about economic dependence on volatile trade partners and aligns with calls from European institutions for broader strategic autonomy.
China and Vietnam: Strategic stops
In China, Sánchez is holding his third meeting with President Xi Jinping. In Vietnam, he will meet with top officials, including the president, prime minister, and party secretary. This marks the first official visit by a Spanish prime minister to Vietnam.
The trade imbalance is striking. In 2024, Spain imported €45 billion worth of goods from China, while exporting only €7.4 billion. The gap with Vietnam is even wider. By strengthening ties and opening access for Spanish goods, Madrid hopes to reduce these deficits.
EU strategy: Diversify, don’t replace
Sánchez and his government have been clear that the objective is not to cut ties with the United States, but to avoid over-reliance on any single partner. The mission supports the EU’s vision of “open strategic autonomy,” a policy aimed at reducing external vulnerabilities through diversified trade and investment.
Part of the mission’s agenda includes tackling regulatory barriers that limit Spain’s ability to export to Asia—these include technical standards, administrative requirements, and phytosanitary rules.
Von der Leyen: Prepared to negotiate, ready to act
European Commission President Ursula von der Leyen also addressed trade tensions today via X. She reiterated the EU’s willingness to negotiate but made clear the bloc is ready to act if necessary. “Europe is ready to negotiate with the US. We have offered zero-for-zero tariffs for industrial goods. Because we’re always ready for a good deal. But we’re also prepared to respond with countermeasures. And protect ourselves against indirect effects through trade diversion.”
Her statement underlines the EU’s dual approach—open to dialogue, but firm in defence of its industries. A former German defence minister, von der Leyen has consistently backed fair global trade while pushing for reduced dependence on single markets.
Investment and innovation on the table
Foreign investment is also high on the agenda. Sánchez is in discussions with Chinese electric vehicle manufacturer BYD about opening a production facility in Europe. Key sectors such as green hydrogen, battery production, rail infrastructure, and renewables are all in focus.
Spain’s agri-food and cosmetics industries—both hard-hit by US tariffs—are hopeful this mission can open new doors. Asian markets could offer much-needed growth opportunities.
Europe watching closely
At a broader level, the European Commission is monitoring developments in global trade. Ursula von der Leyen, President of the European Commission, has reaffirmed the EU’s commitment to defending fair trade, including potential duties on Chinese electric vehicles.
Sánchez’s trip aligns closely with these goals. He has positioned Spain not only as a participant in global trade reforms but as a country ready to lead and connect Europe with emerging economies in Asia.