Spanish premier calls for unity against Trump's tariffs

GENEVA

Spanish Prime Minister Pedro Sanchez has called for unity with "strategic and reliable partners" to confront US President Donald Trump's protectionist approach and his "so-called reciprocal tariffs," EFE reported on Thursday.

During a Spain-Paraguay business forum in Asuncion, Sanchez stressed the need to respond to what he described as an unfolding trade war.

"We cannot sit back in the face of measures we consider unfounded and unfair," he said, referring to Washington's proposed tariffs on the EU.

Sanchez emphasized that while avoiding a trade war must remain the goal, Europe must also be ready to act. He defended Spain's "Commercial Relaunch and Response Plan," which was unveiled a day after the Trump administration announced its tariff intentions.

The Spanish leader proposed that any revenue generated from EU countermeasures be used to create a European fund to support the sectors most affected by potential US tariffs.

"To confront the rise of protectionism, we must work hand in hand with strategic and trustworthy partners," Sanchez said. "Now more than ever, we need to defend a multilateral, rules-based order and strengthen international cooperation."

He also described the pending EU-Mercosur agreement as a "fundamental milestone" and highlighted the role of Spanish companies in Paraguay’s development, pointing to the country’s solid economy and untapped potential.

The EU and US are heading towards a trade deal that would impose 15% tariffs on European goods, the Financial Times reported on Wednesday.

Three sources told the newspaper that Brussels and Washington, DC, were close to a 15% tariff deal, similar to the one finalized between the US and Japan.

The sources said the bloc could accept reciprocal levies to avoid Trump's planned hike to 30% starting Aug. 1.

Both sides could lift tariffs on certain goods, such as aircraft, spirits, and medical devices, they added.