SPAIN: US Tariff Tension & more – 10th April 2025

Buenos días from Gracia! This is the Rorshok Spain Update from the 10th of April twenty twenty-five. A quick summary of what's going down in Spain.

To begin this week, an update on the US’s economic tariffs. Spain is urging the European Union to launch a coordinated emergency support plan for industries impacted by Trump’s new 20% tariff on EU imports.

Carlos Cuerpo, the Economy Minister, emphasized the need for an EU-wide response ahead of a meeting with other trade ministers, warning that national efforts alone are insufficient.

Spain has already pledged over fifteen million dollars as part of an aid package to help its industries, especially the agriculture and food sector, which is expected to suffer the most.

Cuerpo argued that any EU-imposed tariffs as a response could generate revenue for the EU budget, potentially funding broader industry support and helping businesses adapt.

Keeping with tariffs, one of the industries that is feeling the full force of Trump's changes is Spanish olive oil.

Spain is a major exporter of olive oil, wine, and cava to the US. In twenty twenty-four, Spanish olive oil exports to the US averaged around nine dollars per liter, meaning the new tariff adjustments will raise prices by nearly two dollars per unit, a potentially devastating change for producers.

Santiago Niño Becerra, a Spanish economist, warned that if the tariffs persist, it could mark the end of the global trade model as we know it. He emphasized that 40% of Spain’s olive oil production is exported to the U.S., so the new tariffs could deal a serious blow to Spain’s olive oil industry.

While this may seem like a small issue when looking at the entire EU, for Spain, the impact could be significant.

Meanwhile, President Pedro Sánchez visited Vietnam and China to strengthen trade ties and boost Spanish exports.

Sánchez met with Vietnamese leaders and business figures in Hanoi and Ho Chi Minh, followed by talks with China’s president Xi Jinping. Spain wants to reduce its trade imbalance with China, as in twenty twenty-four it imported forty-nine billion dollars annually but exported only eight billion dollars.

Sánchez hopes to attract green tech investment, especially after the Chinese car company, Chery, chose Barcelona for its first European factory. While Sánchez has faced criticism for having talks with China, the EU has also signalled its openness to improving ties with Beijing amid shifting global alliances.

Looking closer to home, tens of thousands of people across Spain protested on Saturday the 5th against the escalating housing crisis, with around 150,000 marching in Madrid and smaller demonstrations in forty other cities.

Protesters condemned soaring rents and the rise of tourist apartments. The issue of housing was once concentrated in tourist-heavy areas like Barcelona and the Balearics, but now affects the entire country.

According to research conducted by the Guardian news outlet, in cities like Barcelona, rents rose 70% in a decade based on last year's figures, while wages grew only 17.5% over the same period.

Young people are particularly impacted, with 85% under thirty still living with parents due to unaffordable housing. Protesters have been demanding lower rents, indefinite leases, and an end to landlord-induced issues, such as premature eviction.

While the housing crisis has become a big-picture issue in Spain, anti-tourism sentiments have started to gain speed again as summer gets closer.

According to the Ministry of Tourism and Industry Statistics, Spain welcomed over ninety million visitors in twenty twenty-four, showing an increase compared to twenty twenty-three, when there were over seventy million tourists. Now, some projections estimate over 100 million by twenty forty. The influx has strained infrastructure, pushed up housing costs, and displaced residents.

Demonstrators targeted short-term rentals and tourist developments, with slogans like Get Airbnb out of our neighborhoods. Authorities are responding, with Barcelona planning to eliminate tourist flat licenses by twenty twenty-eight, and Málaga cancelling plans for over 1,000 tourist homes. However, tensions remain high, with activists warning of more direct action.

In transport news, the Ministry of Transport has announced key changes to its free rail travel scheme.

The ministry has made it easier to get a refund on Renfe’s train passes by lowering the required number of trips from sixteen to eight for Media Distancia, Cercanías, and Rodalies trains. The current scheme allows passengers to buy a Cercanías pass by paying a ten-euro deposit and a Media Distancia pass for twenty, which is then refunded if you meet the number of required trips.

Starting Tuesday, the 8th passengers can request the new two-month passes through the usual channels, either online or at a local ticket office, but these will only be valid until July. However, in Asturias and Cantabria in the North, the free rail travel scheme will continue throughout the year.

From July, these free travel passes will be replaced with a twenty-euro per month commuter pass. Those aged between fifteen and twenty-six will pay ten euros per month, while children under fifteen travel free.

It seems AI is becoming ubiquitous, and whether or not you're a fan, many companies are embracing its potential. The latest to jump on the AI bandwagon is French supermarket chain Carrefour, which has chosen Spain as the location to pilot its new AI solution using OpenAI ChatGPT.

According to the company, this technology will improve the overall customer experience. Amongst the many plans, there will be an advice robot, which will help customers by planning meals, choosing products based on algorithms, and helping the company write product descriptions, among others.

For now, it's only been rolled out to around 3,000 employees and will eventually be available for consumers.

While Carrefour is stepping into the future with cutting-edge AI solutions, another global brand is making its own mark in Madrid. After its humble beginnings at Pike Place Market in Seattle in the US, Starbucks has become a global household name and in Spain, that's no different.

Despite having the most stores across the peninsula, Madrid is about to gain one more shop: a first-of-its-kind flagship store inside Santiago Bernabéu football stadium. The coffeehouse run by restaurant operator Alsea in Spain will offer coffee tastings and will sell some hyper-localized products that can't be found across other Spanish stores, never mind other countries.

Next up, despite initial predictions, Spain managed quite well economically last year, as its GDP went from just over 2% in Spring twenty twenty-three, to just over 3% during the same timeframe in twenty twenty-four. According to the latest Forbes article released on Tuesday the 8th, these positive numbers could be down to tourism, technology and financial sectors but who is behind the positive numbers?

The article, titled: Forbes Best CEO Spain twenty twenty-four, has named the Spanish CEOs who have played a crucial role. Key figures include Ana Botín, from the banking group Santander, José Damián Bogas from the energy group Endesa, and Oscar García Maceiras from the fast fashion clothing company Inditex.

Want to know more? Link to the article in Spanish in the show notes!

For anyone living in Catalunya, the 23rd of April should be a date to remember.

Saint George’s day, or Diada de Sant Jordi in Catalan, is the Catalan equivalent to Valentine's Day, and involves the tradition of gifting books and roses to loved ones.

The regions capital, Barcelona, will host around 500 stalls in central spots like Passeig de Gràcia and La Rambla, alongside a new Literary Route or Ronda Literaria, which will stretch from the Jardins de Gràcia to Santa Mónica in Raval.

And finally, this week, here’s an interesting story for nature seekers. Spain is full of bodies of water but not all of them are by the coast. There are more than 300 reservoirs spread out across the peninsula, surrounded by mountains and beautiful landscapes. Extremadura in the west boasts the largest, with the Serena Reservoir in Badajoz.

It's created a thriving habitat for waterfowl and it has been named a special protection area for birds under EU legislation.

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

Enjoying the update? We hope so! Wanna chat, toss us an idea, or ask something? Email us at info@rorshok.com.

¡Hasta la próxima!