SPAIN: Trump’s Tariff Threats & more – 16th Oct 2025

Buenos días from Gracia! This is the Rorshok Spain Update from the 16th of October twenty twenty-five. A quick summary of what's going down in Spain.

First up this week, on Monday the 13th, a peace deal was signed between Israel and Gaza.

Returning from the Sharm el-Sheik peace summit, President Pedro Sánchez stressed that Spain will pursue accountability for Israel’s actions under Prime Minister Benjamin Netanyahu through the International Criminal Court.

He confirmed that Spain will maintain its arms embargo on Israel despite the peace deal and may send peacekeeping troops to Gaza to support reconstruction and a two-state solution. Sánchez defended Spain’s early recognition of Palestine, which he said strengthened its international credibility.

From foreign to home affairs, on Tuesday the 14th, the government unveiled its proposal to add the right to abortion to the Constitution, creating a new section in Article forty-three that recognizes women’s right to terminate pregnancy, guaranteeing public authorities will ensure it under equal conditions.

Ministers Ana Redondo and Mónica García from the Socialist Party presented the reform, calling it a constitutional shield for women’s rights. The Socialists and Sumar reached a last-minute agreement on the proposal after intense overnight negotiations.

However, the reform is unlikely to pass without the support of the opposition, the Partido Popular.

According to the National Institute of Statistics, Spain’s inflation rate hit 3% in September, its highest level in eight months, driven mainly by higher food, fuel, and electricity prices.

Core inflation, which excludes energy and fresh food, held steady at just over 2%, but the total figure has moved Spain away from the European Central Bank’s 2% target. Olive oil prices in September fell sharply after previous record highs, as well as key food items such as coffee, chocolate, eggs, and beef.

Economists warn that global trade tensions and higher U.S. import costs could further disrupt supply chains and slow the disinflation process.

Speaking of the US, on Wednesday the 15th, President Trump threatened to impose tariffs on Spain after it refused to raise its defense spending to 5% of GDP, accusing Madrid of disrespecting NATO.

Speaking at the White House, Trump said he was very unhappy with Spain and was considering a trade punishment through tariffs. He has long pressed NATO allies to boost defense spending and recently suggested the alliance should expel Spain over its refusal to meet the new target.

Spain remains the only NATO member not to commit to the 5% goal, maintaining its current plan to spend 2.1%, which President Pedro Sánchez called sufficient and realistic.

Heavy rainfall from Storm Alice has caused severe flooding across eastern Spain, trapping residents in cars and forcing evacuations.

The storm began on Tuesday, the 7th, and wrapped up a week later on Tuesday, the 14th. Catalunya has been hit the hardest with muddy rivers surging through streets in Tarragona; however, a state of emergency has been declared in five regions across the peninsula.

Authorities evacuated residents in Murcia in the south and opened emergency shelters after receiving thousands of distress calls. The Balearic Islands, just off the coast of Catalunya, including Majorca and Ibiza, remain under amber and yellow weather warnings as further rainfall is expected.

Luckily, no deaths have been reported, and clearer skies have already moved into the affected areas.

Next, on Monday the 13th, the city of Santiago de Compostela in North-western Spain announced it would ban the opening of new souvenir and specialty shops in its historic center to curb overtourism and preserve local life.

The city is one of Spain’s top tourist destinations, and already has nearly one hundred souvenir stores packed into just a few streets. Officials say the measure aims to repopulate the old town with residents and local businesses after decades of growing commercialization linked to the Camino de Santiago, the famous walk that Christian pilgrims from across the world undertake.

While globalization has turned souvenirs into a thriving business, city leaders insist that restricting new stores is essential to protect Santiago’s cultural heritage.

In crime news, on Sunday the 12th, Spanish police arrested two women activists from the Futuro Vegetal movement after they vandalized a painting of Christopher Columbus at Madrid’s Naval Museum.

The demonstrators threw red paint over the artwork to protest Spain’s National Holiday and denounce the legacies of historical and contemporary colonialism. Museum staff quickly detained the activists until authorities arrived and restored the painting within hours, allowing it to return to public display.

The incident reignited debate over protecting artworks that represent Spain’s history and cultural heritage.

On Tuesday, the 14th, news outlet Reuters reported that Spain has become the leading candidate for BYD, a Chinese multinational car company, to build its third European new energy vehicle manufacturing plant.

The vehicle manufacturer favors Spain due to its relatively low production costs, well-established clean energy infrastructure, and position as Europe’s second-largest car production hub after Germany.

The government incentivizes electric vehicle products through its five-billion-euro support package that was announced in twenty twenty.

Analysts expect the facility to create jobs, boost local supply chains, and further solidify Spain's position as a strategic location for sustainable automotive production.

Keeping with tech, IBM, one of the world’s largest tech companies, has inaugurated the IBM Quantum System Two computer in San Sebastián, Northern Spain, placing the country at the forefront of quantum computing in Europe.

The computer features a powerful processor, the first of its kind in Europe and third globally, surpassing IBM’s previous Eagle processors in Germany.

Quantum computing is powerful because it can solve complicated problems in record times and could potentially optimize traffic planning and medicine design, or improve AI.

According to a recent article by news outlet Variety, the country has become a global powerhouse in streaming and audiovisual content.

Government incentives and investment have boosted local productions, attracted foreign projects, and encouraged Latin American creators to establish bases in places like Madrid. Spain even opened a support office in Singapore, reflecting growing demand in Asia.

Popular hits like Netflix’s Money Heist (La casa de papel) and Society of the Snow (La sociedad de la nieve), and Prime Video’s Red Queen (Reina Roja) have strengthened Spain’s reputation. Between twenty twenty-two and mid-twenty twenty-five, Spanish titles accounted for just over 6% of global non-English streaming revenue.

Now, a story from the world of bullfighting. On Sunday, the 12th, Morante de la Puebla, Spain’s top matador, retired at forty-six after a dramatic final fight at Madrid’s Las Ventas.

Despite a heavy injury earlier in the afternoon, Morante delivered a strong performance, earning the audience’s highest honor as he was carried through the arena, where he symbolically cut off his own ponytail in the ring.

His retirement leaves bullfighting without one of its most popular figures, at a time when public sentiment is turning against the sport. A BBVA Foundation study showed that seven in ten Spaniards now oppose bullfights, particularly younger and university-educated citizens.

On Monday, the 13th, news outlet El País released an article exploring the wealth differences within Spanish generations.

Since two thousand four, the median income of retired citizens has risen from 20% below the national average to 5% above it, while families with children now earn the least. Poverty, once concentrated among seniors, has shifted in recent years. Since two thousand four, roughly 15% of retirees have been living in poor conditions, compared with 21% of young adults and 29% of children.

El País’ research also showed Spain now spends about 5% more than the EU average on pensions.

Closing with a story for doughnut fans, on Wednesday, the 15th, doughnut giant Krispy Kreme officially entered the Spanish market with the opening of its first store in Madrid, aiming to expand rapidly across the peninsula with fifty more outlets in the next four years.

The brand, known globally for its signature Original Glazed doughnuts and coffee offerings, seeks to build a strong retail and café presence in Spain’s competitive bakery and coffee sector. But if you know anything about Spain, that’s going to be a tough challenge, as there is a cafe or bar on every corner.

Aaand that’s it for this week! Thank you for joining us!

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¡Hasta la próxima!