Spain Navigates US Tariffs: Trade Deficit with the US Up 37.7%, Economic Impact Minimal

Spain's trade deficit with the United States surged by 37.7% to €9.504 billion in the first eight months of 2025, reflecting the effects of tariffs imposed under the Trump administration which set a 15% levy on European products. Spanish exports to the US fell by 8.7% to €11.280 billion, while imports from the US increased substantially to €20.775 billion. Despite this widening deficit, the overall impact on Spain’s economy appears minimal due to the relatively small share of US trade within Spain’s total exports and imports.

According to José Luis Escrivá, Governor of the Bank of Spain, Spain is "little affected" by these tariffs because of its lower export exposure to the US compared to other European nations. Minister of Economy Carlos Cuerpo echoed this sentiment, stating there is no "significant impact" from the US tariff policy. Analysts from Funcas highlighted that Spain’s economy is coping better than expected with these protectionist measures, crediting stable family consumption and a strong investment cycle in housing.

Additionally, Spain’s trade relations with China have improved, with exports to China rising by 10.3% and the trade deficit with China increasing by 13.7% to €26.946 billion. The trade deficit with the US represents only 4.4% of Spain’s total exports (€255.920 billion) and 7.1% of total imports (€291.026 billion).

In summary, while US tariffs have increased Spain’s trade deficit with the US significantly, Spain’s broader economy remains resilient, showing minimal impact from these tariffs while diversifying its international trade partnerships.