On Wednesday, April 9, President Donald Trump’s tariffs on nearly all U.S. trading partners went into effect at 12:01 a.m. ET. One of the most significant measures is a hefty 104% tariff on China. Trump’s tariffs are part of his broader economic strategy, which he describes as ‘reciprocal’ to correct what he believes are unfair trade imbalances that have existed for 35 years. The president has claimed these tariffs will encourage countries to negotiate trade deals, ultimately boosting the U.S. economy.

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Immediate Effects on Global Markets

The immediate fallout from these tariffs has caused major losses in global stock markets. In the U.S., investors are anxious, and President Trump has worked to reassure them by stating on social media that ‘everything is going to work out well.’ Meanwhile, the White House has prepared a relief package for U.S. farmers, anticipating the negative impact of these tariffs.

Russia Criticizes Trump’s Trade Policies

Trump’s tariffs have also garnered international criticism. Russia’s Foreign Ministry spokesperson condemned Trump’s policies, arguing they contradict the principles of the World Trade Organization (WTO). The spokesperson expressed concern about the escalating trade war between the U.S. and China, which could further disrupt global trade.

Billionaire Bill Ackman Calls for a 90-Day Pause on Tariffs

Billionaire investor Bill Ackman, a supporter of President Donald Trump, has urged the president to pause tariffs for 90 days. Ackman believes this pause would give Trump time to reach his trade goals without hurting small businesses in the U.S. He warns that if the tariffs continue, many small businesses could go bankrupt, and medium-sized businesses might be next. Ackman’s suggestion comes as businesses struggle with rising costs and supply chain issues, and he stresses the importance of protecting them from further damage during this time.

Our stock market is down. Bond yields are up and the dollar is declining. These are not the markers of successful policy.

I am receiving an increasing number of emails and texts from small business people I do business with or have invested in, expressing fear that they will…

— Bill Ackman (@BillAckman) April 9, 2025

EU Countermeasures Against Trump’s Tariffs

In response to the tariffs, the European Union (EU) has taken significant countermeasures. On Wednesday, EU member states approved 25% tariffs on a wide range of U.S. products, including almonds, orange juice, poultry, soybeans, steel, aluminum, tobacco, and even yachts. This retaliation targets U.S. imports following the 25% tariffs the U.S. imposed on EU steel and aluminum. These measures mark the EU’s first major retaliatory actions in the ongoing trade war, which Trump has escalated with his protectionist policies aimed at various global trading partners.

The decision was made after intense lobbying from EU member states, with some countries voicing concerns about the impact on their industries. Notably, Hungary refused to vote in favor, while countries like France, Ireland, and Italy successfully pushed to have bourbon whiskey removed from the list of targeted products after Trump threatened a 200% tariff on European alcohol. Despite these discussions, the full list of U.S. products affected was not immediately released.

EU tariffs are set to come into effect between April 15 and December 1, 2025, with the timeline extended to allow room for further negotiations with the U.S. However, the EU has made it clear that these tariffs can be suspended at any time if the U.S. agrees to a fair trade agreement. According to Olof Gill, the Commission’s trade spokesperson, the EU’s goal is to push the U.S. to negotiate a balanced trade deal that will prevent further escalation.

The EU’s countermeasures are a direct response to the U.S. actions, which include 25% tariffs on EU cars and reciprocal tariffs on all EU imports, affecting 70% of EU exports to the U.S. With a total value of €26 billion annually, U.S. tariffs have already begun to have a significant impact. The EU is also preparing additional retaliatory measures, which will be unveiled next Tuesday.

Spain’s Economic Outlook Amid Tariff Impacts

The Bank of Spain has revised its economic growth forecast downwards due to the impact of Trump’s tariffs on European goods. The central bank had initially projected a 2.7% GDP growth for 2025, but this estimate may now be too optimistic. Bank Governor José Luis Escrivá noted that growing tensions and uncertainty pose significant risks to the Spanish economy.

Sánchez Faces Pressure Amid U.S. Tariff Tensions

While Spain deals with the fallout from the tariffs, President Pedro Sánchez is navigating delicate international relations. The U.S. Treasury Secretary, Scott Bessent, warned Spain against getting closer to China, suggesting that such a move could harm Spain’s economy stating it would be ‘like cutting your own throat.’

Sánchez, however, has hinted at strengthening ties with China as a countermeasure to Trump’s trade policies. This diplomatic balancing act highlights Spain’s struggle to adapt to an increasingly protectionist global trading environment.

Pedro Sánchez Visits Vietnam Ahead of Upcoming China Trip

Spanish Prime Minister Pedro Sánchez is currently in Vietnam as part of his official diplomatic visit. During his stay, Sánchez is meeting with Vietnamese leaders to discuss strengthening bilateral ties, particularly in areas of trade, technology, and climate change cooperation. The visit highlights Spain’s commitment to expanding its presence in the Asia-Pacific region.

Sánchez’s trip to Vietnam is part of a broader strategy to enhance Spain’s international partnerships. The Spanish leader is expected to travel to China next, where he will engage in discussions with Chinese officials on a range of issues.

How Tariffs May Impact Spain

As global tariffs continue to change, Spain’s economy faces both challenges and new opportunities. The ongoing trade tensions between the US and China are pushing the EU to respond, adjusting tariffs to protect local industries. For Spain, this means possible price increases on imported goods and changes in trade relationships, but it also offers a chance to explore new markets.

Pedro Sánchez’s recent trip to Vietnam and his upcoming visit to China show Spain’s efforts to build stronger ties with countries around the world. These diplomatic moves could help Spain deal with the impact of changing tariffs and bring in new business deals.

These changes in global trade rules are especially important for businesses in Spain that rely on exports or imports. While this situation could lead to higher costs, there is also the potential for Spain to find new ways to grow its economy.

How do you think these changes in tariffs will affect Spain’s economy and international trade? Share your thoughts with us.

Main image: lamoncloa.gob.es