Officials in Spain are concerned that “growth will slow” following the implementation of Donald Trump’s 10% tariffs. Exports to the US from across the globe have been subject to a baseline levy after the initial higher reciprocal tariffs were paused. However, the new rate is still causing considerable panic across European countries as the tourism sector could suffer consequences.
Exports from the Balearic Islands were, like the rest of Europe, originally hit with 20% tariffs. Despite being reduced by half, the news has still raised concern among officials in the archipelago, Majorca Daily Bulletin reports. Local government figures show that exports to the US between 2017 and 2024 was €312 million (£269m).
While sales of commonly used household goods such as olive oil and wine are subject to potential impact, the largest export in that time period was locust bean gum, also known as carob gum. The product’s seed provides a thickening agent in food technology.
The total value of the shipment to the US stands at a staggering €48.1million. In second place is footwear, ranking the second largest export, followed by cosmetics.
The Balearic government had allocated €6million of funds to combat the tariff impact on the economy, yet officials have now announced it will now be freezing some of it.
Catalina Barceló, the director-general for the economy, says: “We will have to get used to these ups and downs and to the uncertainty, which is never good for the economy because it creates instability in the market. We will support the affected sectors because it is not easy to change markets overnight.”
The director-general says the government is concerned about how the levies may impact the tourism industry: “It is too early to see the consequences, but everything indicates that growth will slow. We must keep an eye on Germany, the UK, France, Italy. If things go badly for our source markets, things will go badly for us.”
The US stands as one of the largest suppliers of imports in the world, with their market share increasing exponentially over the past few years. The largest imports to the country are machinery and technology, followed by chemical and pharmaceutical products, mineral fuel and mineral fuels.