Spain's Economy Shows Resilience Amidst Global Trade Challenges in 2026

Spain's economy under the Sánchez government continues to grow above 2%, despite facing global trade uncertainties and the impact of new U.S. tariffs. Economy Minister Carlos Cuerpo highlighted the recent changes in U.S. trade policies following a Supreme Court ruling that led to the implementation of a new temporary global tariff of 10%, with some products effectively facing up to 15%. This new tariff regime, announced by President Donald Trump, has introduced uncertainty in transatlantic trade relations, prompting ongoing coordination between Spain's Ministry of Economy and the European Commission to evaluate potential legal and commercial impacts. Cuerpo emphasized that while the average tariff rate has decreased compared to the previous EU-U.S. agreement—from 14.4% to around 12.6%—the situation remains fluid, especially since the new tariffs can only last 150 days without Congressional approval, suggesting the U.S. is considering alternative trade measures.

In 2025, Spain achieved a 0.7% increase in exports, reaching €387.092 billion, marking the second highest figure in its historical records. However, imports rose by 4.6% to €444.146 billion, resulting in a trade deficit of €57.055 billion. Key export sectors include machinery, food and beverages, and chemicals. The agro-food sector notably generated a surplus of €1.546 billion, reaffirming its critical role in Spain's trade balance. Regionally, Andalusia stood out as the third-largest exporting community with over €40 billion in exports, solidifying its status as the global leader in olive oil exports, accounting for 72% of Spain's sales in this product category, despite a 19.2% drop in value due to a bountiful harvest lowering prices.

Geographically, the European Union remains Spain's main export market, making up 62% of exports and yielding a surplus of €19.762 billion. Exports to Africa and Asia grew by 6% and 3% respectively, while exports to the United States declined by 8%, reflecting ongoing tariff tensions and geopolitical volatility.

Domestically, challenges persist with high youth unemployment and housing issues. Nevertheless, the government is optimistic, with Cuerpo affirming ongoing productivity improvements, migration benefits, a stronger business fabric, and rising private sector wages proving counter to the belief that small businesses cannot increase salaries. The government also plans to present its budget proposal within the first quarter of this year, aiming to address these challenges and foster further economic stability and growth.