Spain launches €5 billion support plan amid Trump's new tariff war with EU
As Trump reignites a global tariff war, Spain finds itself walking a tightrope—defending its economic ties with both Washington and Beijing while launching a multi-billion euro lifeline for its industries.
The Spanish government has launched a support plan of up to €5 billion in guarantees, managed by the Official Credit Institute (ICO), to assist companies impacted by Donald Trump’s renewed tariff war. Initially, €1 billion will be released: €750 million for liquidity and €250 million for investment projects. This move comes as tensions rise due to the U.S.'s protectionist stance. Economy Minister Carlos Cuerpo is in Washington to meet with Treasury Secretary Scott Bessent. The visit aims to preserve Spain–U.S. trade relations amid geopolitical friction.
Spain seeks global trade balance amid U.S. criticism over ties with China
Scott Bessent recently criticized Spain’s outreach to China following Pedro Sánchez’s meeting with Xi Jinping. However, Spanish officials insist that the Washington trip was planned in advance, not as damage control. Government spokesperson Pilar Alegría emphasized the strategic importance of maintaining strong economic ties with the U.S. The administration is attempting to balance its global trade ambitions. Meanwhile, political opponents accuse Sánchez of risking Spain’s standing with Washington.
Jordi Hereu, Minister of Industry and Tourism, stated that Spain seeks commercial cooperation with all global regions, including China and Mercosur. He reaffirmed the strategic importance of the Atlantic axis and Spain’s commitment to dialogue with North America. The government is positioning itself as open to diversified international trade. The goal is to avoid overdependence while preserving key transatlantic relations. Spain aims for balanced diplomacy amid rising global polarization.
Government defends strategic diplomacy as opposition questions trip to Washington
Opposition leader Dolors Montserrat criticized the Sánchez government’s foreign policy shift. She suggested that the Economy Minister's trip to Washington was to “clean up” the president's diplomatic misstep with China. In her view, Spain has been placed in the crosshairs of the U.S. due to the Asia visit. The government strongly denies this interpretation. They maintain that their actions follow a long-term economic and diplomatic strategy.
The Council of Ministers has formally approved the ICO guarantee line, with an initial €1 billion rollout. The government pledges to support businesses facing hardship due to the U.S.'s new tariff framework. Cuerpo’s Washington trip is framed as a normal continuation of Spain’s economic diplomacy. Officials argue that Spain’s global positioning is strategic, not reactive. In a complex trade landscape, Spain is working to safeguard its commercial future.