The Spanish government will roll out a 14.1-billion-euro ($15.66 billion) plan to mitigate the economic impact of new U.S. tariffs, Prime Minister Pedro Sanchez announced on Thursday.
The plan includes 7.4 billion euros in new financing, with the remaining funds coming from existing instruments such as soft loans.
Sanchez also called on the European Commission to establish a fund financed by revenue from tariffs on U.S. imports, which are set to rise in response to the recent tariff hikes. He further requested EU approval for more flexibility in providing large-scale domestic aid to industries severely impacted by the tariffs, such as the automotive sector.
“This tariff attack by the U.S. administration makes no distinction between friends and enemies, and it doesn’t consider ideology or trade balance; it’s an attack on everyone,” Sanchez stated. The measures aim to act as a safety net, offering protection in the short term to industries facing a decline in sales due to U.S. tariffs, including a 20% levy on EU imports announced by President Donald Trump on Wednesday.
Economy Minister Carlos Cuerpo added that the European Union is keen to negotiate to avoid a trade war but will be forced to retaliate if negotiations fail.
