The President of the Government of Spain, Pedro Sánchez, has unveiled a €14.1 billion aid package aimed at mitigating the impacts of tariffs imposed by the Trump administration on various Spanish sectors.

This financial initiative comprises €7.4 billion in new funding, while an additional €6.7 billion will be sourced from existing budget allocations.

Sánchez made the announcement at the Palacio de la Moncloa following a meeting with representatives from the agro-food, automotive, and steel industries—some of the most susceptible to the repercussions of U.S. tariffs.

He emphasized that the Spanish government is taking proactive measures, stating, "The Government of Spain will not wait to see what happens; we will act in advance," referring to what he termed a "trade war that no one—except one person—wants," in reference to former U.S. President Donald Trump.

Additionally, Sánchez called on the European Commission to continue negotiations with Trump, while urging for reciprocal tariffs if diplomatic efforts fail.

He requested that the EU distribute assistance to affected sectors and finance social measures that national governments will implement.

The president specifically requested a "fund for aid for affected sectors" and a "review of community regulations" intended for professionals in these industries after discussions with European Commission President Ursula von der Leyen.

Two programs involving €6 billion in guarantees from the Official Credit Institute (ICO) are set to be launched, designed to aid companies most impacted by U.S. tariffs in securing financing.

The plan also includes the reactivation of the Moves III initiative, which supports the purchase of electric vehicles, benefitting the automotive sector, alongside a €200 million fund for companies to modernize their facilities or adjust their production activities.

Employment protection measures similar to those activated during the pandemic are also included.

During his address, Sánchez likened the current situation to a pandemic response, asserting his administration's resilience in the face of multiple challenges, including threats from Russia, the COVID-19 pandemic, and now a trade crisis.

He described the unforeseen "commercial threat from the west" as necessitating a unified national response.

Sánchez stated that "19th-century protectionism is not an intelligent response to the challenges of the 21st century," criticizing the tariffs as a pretext for addressing what he termed "questionable fiscal policies," and emphasized the unjust nature of the crisis created by current trade dynamics.

Spanish exports to the U.S. account for approximately 4.7% of total external sales, and while certain sectors face significant exposure, the overall impact of U.S. protectionist policies is projected to be relatively contained compared to other European nations.

Initial assessments by the Bank of Spain suggest that the overall reduction in GDP could be limited to 0.11%.

Spain has implemented this aid package swiftly, ahead of other EU member states, many of whom have not yet enacted domestic measures in response to these trade tensions.

To coordinate the governmental response, Sánchez has announced the formation of an interministerial commission led by Minister of Economy Carlos Cuerpo.

This commission will oversee discussions regarding the response to the U.S. tariff policies.

Cuerpo will also convene a sectorial conference on trade to engage regional presidents, in addition to initiating discussions with other political parties.

Sánchez has called for solidarity, urging all parties to unite against what he described as an attack that does not differentiate between allies and adversaries.

He remarked that divisions must be avoided, emphasizing that the government will allocate different budgets to help businesses pivot in light of the new international trade environment.

In his remarks, Sánchez highlighted the resilience of the Spanish economy compared to previous decades as a shield against emerging financial challenges.