Trump’s tariffs trigger Spain’s trade deficit with the US as exports fall by 7.4% until September

The generalized 15% tariff that the White House imposed on the vast majority of European exports – with specific types and conditions for automobiles, pharmaceuticals and semiconductors – has had an obvious impact on exports of Spanish goods to the United States. The trade deficit of the country with the greatest economic power on the planet it shot up 38.7% between January and September compared to the same period a year ago and now exceeds 10,785 million euros.

This hole grows as merchandise exports have decreased by 7.4% to 12,604 million, according to the data collected in the Monthly Foreign Trade Report prepared by the Ministry of Economy, Commerce and Business. This amount represents around 4.4% of all national sales abroad, which amounted to 288,339 million in the first nine months of the yearthe second highest figure for this period.

While exports decreased, imports of US products increased 9.4% to 23.39 billion. This amount represents 7.1% of Spanish purchases abroad, which totaled 329,446 million euros from January to September. The United States was, thus, the second country that contributed the most to the increase in Spanish imports in the accumulated exercise, especially with medications and gas. Also notable were the contributions from Italy, from which Spain bought medicines, non-ferrous metals and general-use machinery, and from Germany (automobiles, aircraft and electrical appliances).

Consumption and investment take over from the foreign sector

However, the weakness of the foreign sector is not only reflected in the data with the United States, given that in general terms sales abroad stagnated – with a slight growth of 0.5% – while imports increased by 5%. The countries with respect to which the Spanish economy registered the largest surpluses until September were France (13,840 million), Portugal (13,089 million) and the United Kingdom (10,899 million).

In September alone the trade hole shot up more than 82% to 6 billion. Exports totaled 32,419 million, registering their second historical high for that month; while purchases abroad rose 10% to 38,420 million, also the second historical maximum for September.

The complex situation faced by Spain’s main trading partners in the Eurozone (Germany, France and Italy) can be seen in the data from the quarterly National Accounts. The export of goods registered its biggest decline in two years in the third quarter, 1.3% compared to the previous quarter. However, the Spanish economy maintains its dynamism, thanks to the push of national demand and, specifically, private consumption and investment.