The Spanish government has announced a large-scale economic support plan worth €14.1 billion aimed at mitigating the impact of new U.S. tariffs.
Prime Minister Pedro Sánchez made the announcement on Thursday, as quoted by Reuters. According to him, the program includes €7.4 billion in new funding, while the remaining amount will be allocated through existing mechanisms, such as preferential loans.
Sánchez also called on the European Commission to create a special fund, which would be financed by revenues from retaliatory tariffs on U.S. imports. Additionally, he urged the EU to grant member states more flexibility in providing assistance to the most affected sectors, such as the automotive industry.
Spanish Economy Minister Carlos Cuerpo emphasized that the measures would serve as a “safety net” to protect businesses facing a decline in sales due to the U.S. tariffs, including a 20% levy on imports from the EU.
According to Cuerpo, the European Union is seeking negotiations to avoid a full-scale trade war. However, if dialogue proves impossible, the EU will be forced to take retaliatory measures.
On April 2, U.S. President Donald Trump officially announced the start of a trade war, imposing tariffs ranging from 10% to 50% on imports depending on their country of origin. European Commission President Ursula von der Leyen called this move a “serious blow to the global economy” and stated that the EU is prepared to respond.
