Spanish Prime Minister Pedro Sánchez on Monday voiced his support for the newly agreed trade deal between the European Union and the United States – but noted his stance came ‘without any enthusiasm’.
The agreement, reached on Sunday in Scotland by US President Donald Trump and European Commission President Ursula von der Leyen, sets a standard tariff of 15% on goods exported from the EU to the US. While this rate is notably lower than the 30% blanket tariff previously threatened by Trump, it still represents a significant increase compared to existing duties.
Whilst both sides have hailed it as a ‘good deal’, there have also been critics (see more below).
‘I value the constructive and negotiating attitude of the president of the European Commission,’ Sánchez said during a press briefing on Monday. ‘I support this trade agreement, but I do so without any enthusiasm.’
Spanish officials have downplayed the broader impact the new tariffs might have on the national economy – one of the developed world’s most dynamic – citing Spain’s relatively limited trade exposure to the US market. However, the government has flagged potential vulnerabilities in key sectors such as wine and olive oil, which rely more heavily on exports to the United States.
The Spanish Federation of Food and Beverage Industries, which advocates on behalf of over 18,000 exporters, criticised the new terms, stating the tariff ‘puts an end to the balance of free trade’.
‘An agreement is better than an open trade war, but we do not accept that exports of our products to the United States should be penalised,’ the federation added in an official statement.
According to the Bank of Spain, the US ranks as the country’s sixth-largest destination for goods exports. Still, Spain’s commercial ties with the US lean more heavily towards services compared with other eurozone countries, suggesting the overall tariff impact may be somewhat muted.
EU-USA Trade Deal
The European Union on Monday vehemently defended its trade deal with Trump, with EU capitals and businesses sharply divided on an outcome some branded a ‘capitulation’.
Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15% instead of a threatened 30% — but the deal has not been welcomed by everyone.
The 27-nation EU bloc also promised its companies would purchase energy worth $750 billion from the United States and make $600 billion in additional investments — although it was not clear how binding those pledges would be.
Full details of the agreement – and crucially which sectors could escape the 15% levy – will be known in coming days, although the EU says it has avoided steeper tariffs on key exports including cars and medicines.
But the reaction from European capitals – which gave von der Leyen the mandate to negotiate – ranged from muted to outright hostile.
French Prime Minister Francois Bayrou said it was a ‘dark day’ for Europe and said the accord was tantamount to ‘submission’.
Speaking for Europe’s biggest economy, German Chancellor Friedrich Merz gave a warmer welcome to a deal he said had avoided ‘needless escalation’.
‘I’m 100 percent sure that this deal is better than a trade war with the United States,’ top EU trade negotiator Maros Sefcovic told journalists.
Defending Brussels’ approach, Sefcovic warned that a no-deal scenario – meaning a 30% tariff and the prospect of further escalation – would have risked up to five million jobs in Europe.
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