Pedro Sánchez, Prime Minister of Spain, has publicly criticized U.S. President Donald Trump for initiating what he termed a "unilateral trade war" through the imposition of tariffs.

These tariffs include a 25% levy on the automotive sector and a general 20% tariff on other products.

Sánchez accused Trump of instigating this trade conflict to "punish countries" and to generate revenue to offset a questionable fiscal policy.

In light of these developments, Sánchez announced a comprehensive Response Plan amounting to €14.1 billion aimed at mitigating the impact on affected sectors.

This plan includes €7.9 billion in new funding, supplemented by an additional €6.7 billion from existing budgets, including €5 billion from European Union funds.

The proposed aid package features several components, including €2 billion allocated for credit insurance and export risk coverage, and €500 million dedicated to assisting small and medium-sized enterprises in their internationalization efforts.

Additionally, specific initiatives through the Spanish Institute for Foreign Trade (ICEX) will help impacted sectors consolidate their position in the U.S. market.

Sánchez noted that the plan will also facilitate access to financing for companies through two lines of guarantees and interim financing from the Official Credit Institute (ICO), amounting to €6 billion.

Furthermore, a €200 million investment support fund will be established to provide loans and equity participation aimed at modernizing existing production facilities or establishing new ones.

The recently approved MOVES III Plan to stimulate the automotive sector will be executed this year, and the RED mechanism (equivalent to temporary layoffs) will be activated for sectors in need of support.

Sánchez also challenged Trump’s narrative regarding European tariffs, asserting that the figure cited by Trump—39% on U.S. products—is erroneous.

He clarified that the actual tariffs imposed by Europe on U.S. products stand at just 3%, emphasizing that the trade balance between the two regions is nearly equal.

The Spanish leader warned Trump that he would ultimately be the true loser in this trade war, and announced that Ursula von der Leyen, the President of the European Commission, would soon present a collective response from the European Union.

He called for negotiations, stating that "Europe's hand is extended" in an effort to reach a trade resolution.

Trump's decision to impose tariffs affects multiple countries, with Europe facing a general 20% tariff, while China faces a 34% tariff, and the United Kingdom and Australia are subject to a 10% tariff.

Economists had previously anticipated even higher tariffs, with projections suggesting rates could reach approximately 34.8%, a level not seen since the late 19th century.