On April 2, 2025, President Donald Trump officially announced a new wave of tariffs, calling the day ‘Liberation Day’ and some people are calling it ‘T-Day.’ Speaking from the White House Rose Garden, he declared that the U.S. would impose a 25% tariff on all foreign-made automobiles, starting at midnight in Washington, D.C. time approximately. The announcement was met with loud cheers from American autoworkers present at the event. He also announced a universal minimum tariff of 10% on all imports and significantly higher rates on countries with large trade surpluses with the U.S.

Trump framed the tariffs as a way to protect U.S. industries and jobs. ‘We will be taking care of our people,’ he stated, blaming ‘sleepy Joe Biden’ for the economic struggles he described. He also used the speech to give his version of the history of U.S. trade policies, suggesting that America had been taken advantage of for decades.

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Trump’s Tariff Plan: A ‘Trade War’ with the World

During his speech, Trump presented a chart showing the tariffs he planned to introduce. ‘I hope nobody gets mad,’ he said, explaining that the U.S. was simply responding to other countries’ tariffs. He pointed out that China charges the U.S. a 67% tariff, while the U.S. charges China 34%. Regarding the European Union, he said, ‘They are very tough negotiators. They charge us tariffs of 39%. We will charge them 20%.’

The President accused the EU of ‘ripping off’ the U.S., claiming, ‘We’ve been deceived for over 50 years, but it won’t happen again.’ These new tariffs follow previous trade measures, including 25% tariffs on Canadian and Mexican imports aimed at pressuring both countries to curb migration and fentanyl smuggling. China has also faced 20% tariffs on various goods. Trump made it clear that he intends to keep these tariffs as a long-term source of revenue while encouraging companies to move production back to the U.S.

LIBERATION DAY RECIPROCAL TARIFFS pic.twitter.com/ODckbUWKvO

— The White House (@WhiteHouse) April 2, 2025

Major U.S. Companies Announce Billions in Investments

Alongside the tariff announcement, Trump also revealed that several major U.S. companies, including Apple and Meta, have pledged significant investments in domestic manufacturing. These tech giants, along with other major corporations, have committed trillions of dollars toward building new production facilities in the U.S. Meta and Apple have pledged $500 billion each according to President Trump. The President framed these investments as proof that his economic policies are working, emphasizing that the goal is to bring jobs back to American workers.

Trump stated, ‘This is just the beginning. We are rebuilding our economy, and companies are seeing that America is the best place to do business again.’ The investments are expected to create thousands of jobs, particularly in the technology and manufacturing sectors, further strengthening Trump’s argument that the tariffs will benefit the U.S. in the long run.

How Spain Will Be Affected by the Tariffs

Spain, like other EU countries, is now bracing for the impact of these tariffs. The Spanish government has been on high alert for weeks, closely monitoring the situation as U.S. trade tensions with Europe escalate. Several key Spanish industries could be hit hard by Trump’s tariffs, particularly agriculture, wine, and the automobile sector, all major contributors to the Spanish economy.

Spain is a global leader in wine production and a key player in Europe’s automotive industry. Spanish companies export large numbers of vehicles to the U.S., and a 25% tariff could make these cars significantly more expensive for American consumers, leading to a drop in sales. The same goes for Spanish agricultural products, which could face reduced demand if they become more expensive due to tariffs.

Spain’s Response: A Plan to Protect Key Industries

In response to the looming tariffs, Prime Minister Pedro Sánchez has ordered a detailed action plan to protect Spain’s most vulnerable industries. This plan, which is still being finalized, is expected to include direct financial aid to affected companies, especially in the agricultural, automotive, and metallurgical sectors.

The Spanish government is also coordinating efforts with the European Union, as any retaliation against U.S. tariffs will likely come from Brussels rather than individual member states. ‘We will defend ourselves,’ Sánchez stated, insisting that Europe would respond in a ‘swift, proportional, and united’ manner. However, he also emphasized the importance of maintaining economic stability and keeping trade relations with the U.S. as open as possible.

Additionally, the Spanish government is preparing to meet with representatives from the country’s business and labor sectors to assess the full impact of the tariffs. Companies and workers in the affected industries are being urged to remain calm while the government negotiates a response.

Market Reaction and Economic Consequences

Financial markets initially reacted with volatility following Trump’s announcement, with the S&P 500 dipping early in the day before recovering to close 0.67% higher. The Dow Jones Industrial Average and Nasdaq also ended the day with gains of 0.56% and 0.87%, respectively. However, analysts warn that these tariffs could have long-term consequences for the U.S. economy, as well as for global trade.

Economists at Citi have warned that tariffs above 20% could create economic instability, potentially leading to a mix of slow economic growth and rising inflation, known as ‘stagflation.’ If the tariffs remain in place for an extended period, they could drive up consumer prices in the U.S. while also hurting export-driven economies like Spain‘s.

Future Tariff Plans

Beyond the newly announced measures, Trump has hinted at further tariffs on essential goods like semiconductors, pharmaceuticals, food products, and raw materials like copper and timber. He has also authorized a 25% tariff on countries purchasing oil from Venezuela, signaling potential future restrictions on energy imports.

With these aggressive trade policies, the global economy faces significant uncertainty as nations prepare their responses to the new U.S. trade regime.

Spain and the EU Await Further Developments

With Trump’s tariffs now set to take effect, Spain and other European nations are waiting to see how negotiations unfold and whether any exemptions or adjustments will be made. Meanwhile, all eyes are on global markets and political leaders’ responses.

Prime Minister Sánchez is scheduled to address the nation at noon on April 3 to outline Spain’s official strategy. The EU is also expected to take a firm stance in response to what some are calling a ‘trade war’ initiated by the U.S.

For now, Spain’s government is focused on damage control, looking for ways to shield its industries from the fallout while maintaining economic stability. How the situation evolves will depend on both diplomatic efforts and the reaction of international markets in the coming weeks.

President Trump Participates in the Make America Wealthy Again Event https://t.co/CDX2abcJ7J

— The White House (@WhiteHouse) April 2, 2025

Main image: X/@howardlutnick