The Spanish government has unveiled a €14.1 billion plan aimed at mitigating the economic repercussions of the trade tariffs imposed by the United States under the administration of former President Donald Trump.

Prime Minister Pedro Sánchez described the strategy as a necessary measure to 'protect our economy, our companies, and our workers,' emphasizing a dual support system involving both the Spanish government and the European Union.

Sánchez indicated that the financial package is designed to modernize the Spanish economy, sustain employment, support local businesses, and explore new markets and trade partnerships.

However, a significant portion of the assistance—amounting to €7.4 billion—will be classified as loans that companies will be required to repay.

The government plans to introduce two lines of guarantees and intermediate financing through the Official Credit Institute (ICO), amounting to €6 billion, aimed at facilitating access to liquidity for businesses.

Additionally, a €200 million industrial investment support fund will be established to provide loans and equity participation to upgrade or establish new production facilities.

Of the total funding, €6.7 billion will be allocated to support instruments aimed at protecting both businesses and workers, as well as reorienting Spain's productive capacity towards new markets, focusing on strategic autonomy.

However, specific details regarding these support measures remain undisclosed.

Sánchez further revealed plans to reallocate an additional €5 billion from the Recovery Plan to transform and realign production capabilities toward sectors with high demand that may be negatively affected by tariff shocks.

This will include €2 billion for credit insurance and export risk coverage, €500 million for the internationalization of small and medium-sized enterprises, and a specific plan from the Spanish Institute for Foreign Trade (ICEX) to assist sectors that face challenges in the US market.

In addition to these financial measures, Sánchez announced the launch of the Moves II Plan, which has been allocated €400 million.

This initiative aims to stimulate the automotive sector and will be implemented this year, independent of the tariff situation.

The government will also activate the RED mechanism, also known as ERTE, to support sectors in distress by preserving employment during the economic downturn.

Sánchez is set to request urgent measures from the European Commission, including activating a special state aid framework to provide greater flexibility for national support measures and establishing a fund to assist sectors adversely affected by US tariffs.

The proposal will include suggestions for reviewing specific community regulations to support vulnerable sectors and endorsing the Mercosur agreement.

To oversee the implementation of this plan, a ministerial commission will be established, led by the Minister of Economy, Carlos Cuerpo.

This body will manage the logistics of the financial package and report its findings to the Social Dialogue Table, which includes business and union representatives.

Cuerpo will lead an immediate call for a Sectoral Commerce Conference with regional government counterparts and will conduct consultations with parliamentary groups to communicate ongoing developments and adopted measures.