Lorraine Williamson
On 2 April 2025, US President Donald Trump announced a new round of import tariffs, targeting goods from the European Union. The measures, which include steep hikes on a range of products, threaten Spanish exports in key sectors such as cars, food, drink, and pharmaceuticals.
Starting on April 5, a blanket10% tariff will now apply to all imports entering the United States. For EU-origin goods, that figure jumps to 20%. Additionally, a 25% tariff will apply to vehicles and automotive components from 9 April.
Trump claims these tariffs respond to EU trade surpluses and VAT systems that he argues disadvantage US products. He described the move as “reciprocal” and long overdue.
Spanish car makers face mounting costs
Spain’s automotive sector, a cornerstone of its export economy, is among the hardest hit. The tariffs affect passenger cars, vans, SUVs, and major components, including engines and gearboxes.
With the US now imposing 25% duties on these items, Spanish manufacturers face a difficult choice: absorb the cost or risk losing competitiveness. Higher retail prices in the US are likely. Even American producers may be affected due to globalised supply chains.
Agri-food exports under threat
Olive oil and wine are also in the firing line. Spain exported over €1 billion in olive oil to the US in 2024, supplying nearly a third of the American market. Wine exports reached €335 million.
Now, with additional tariffs looming—possibly as high as 200% for some alcoholic drinks—many producers are reassessing their US strategies. Industry voices warn that years of market-building could be undone.
Rising prices for everyday goods
Major brands in food, fashion, and cosmetics are also reacting. Companies such as Puig, Adidas, and H&M have already signalled price increases. With extra costs passed down the supply chain, US consumers will pay more for everyday products.
Pharmaceuticals no longer protected
Until now, pharmaceuticals had been spared in previous trade disputes. But Trump’s latest remarks suggest that medicines are now on the list. That’s added uncertainty for Spanish pharma firms relying on US markets.
Broader economic risk remains limited—for now
The Bank of Spain has played down the overall impact. US-bound exports represent a relatively small share of Spanish trade. Yet, it warns that potential EU counter-tariffs could worsen the situation. In a worst-case scenario, Spain’s GDP might decline by 0.11% over three years.
Repsol hit by Venezuela sanctions
Spain’s energy sector is also feeling the heat. Repsol, which has significant operations in Venezuela, is indirectly affected by US sanctions. Washington has suspended export licences for Venezuelan oil, threatening supply agreements and revenue for the Spanish oil giant.
Diplomacy or escalation?
With Spain’s key export sectors under pressure, uncertainty hangs over future EU–US trade relations. While some hope for negotiation, others fear this marks a deeper rift. What’s certain is that Spanish companies are already counting the cost.