Spain: 12% of its agrifood sales to the US in danger

The Bank of Spain forecasts an impact of €130 million because of new Trump’s tariffs. This will be the damage to suffer by the Spanish agrifood sector because of its lower sales in the US market.

The Spanish economy is highly vulnerable to the increase of world tariffs linked to the intensification of the global trade war. Only the latest threat to raise taxes on several EU goods announced by the US Government will cause Spain an economic damage of €130 million, as a result of lower sales of agrifood products, according to the Bank of Spain.

The national bank’s analysis estimates a 12% reduction in agricultural sales to the US’s market with tariffs increasing from 3% to 25%. For each 1% tariff increase, sales will be affected by 0.6%.

This tax increase is directed against the whole of the EU, but will especially affect Spain due to the high exposure of its agrifood sector. One out of every five foodstuffs leaving the EU comes from Spain.

GETSHA, the Association of Customs Officers, estimates that the impact will be €120 million, while the Ministry of Agriculture, Food and Fisheries raises this figure to €200 million.

GETSHA adds, “the impact of this new US policy will only affects 0.7% of all Spanish exports”. The most damaged products will be olive oil and olives.

Source: El Mundo