Spain Maintains Firm Stance on Chinese Car Tariffs Amid EU Debate

Spain Rejects U-Turn on Tariffs Despite Internal Pressure
Spain’s Finance Minister, Carlos Cuerpo, has reaffirmed the country’s position on Chinese car tariffs, rejecting any notion of a U-turn despite growing calls from Prime Minister Pedro Sánchez to reconsider the European Union’s stance. Cuerpo’s comments come as part of a wider debate within the EU on the imposition of tariffs on Chinese electric vehicles (EVs), with Spain joining 17 other countries in abstaining or voting against the measure.

The proposed tariffs, which could rise as high as 45%, are seen as retaliatory for China’s subsidies to its EV sector, which critics argue distort global competition and threaten European manufacturers. Despite Spain’s abstention, the measure passed, supported by France, Italy, and the Netherlands. While the EU moves forward with its position, Spain remains committed to pursuing diplomatic channels to resolve the issue, avoiding escalatory protectionism.

Spain’s Call for Diplomatic Solutions to Avoid Trade War
Cuerpo emphasized the importance of exhausting all negotiation avenues before resorting to retaliatory trade actions. He cautioned that the worst-case scenario would be a tit-for-tat escalation that harms both the EU and China, as well as the global economy. “We need to find joint solutions,” said Cuerpo, signaling Spain’s willingness to engage in discussions rather than rushing into punitive tariffs. Spain’s position aligns with the EU’s broader concerns regarding Chinese state subsidies, which the European Commission has been investigating for some time.

The debate around Chinese tariffs is part of the EU’s ongoing struggle to level the playing field for European industries competing against state-backed companies. Cuerpo noted that Spain has supported the Commission’s inquiry into Chinese subsidies, but it is crucial that the EU addresses these issues through diplomatic measures rather than solely through protectionist trade policies.

Spain’s Engagement with US Trade Policies and Transatlantic Relations
When questioned about US trade policies under President Donald Trump, Cuerpo noted that Spain is prepared to engage constructively with the new US administration. Trump’s recent pledge to impose a 10% tariff on a wide range of imports is a concern for European exports, but Cuerpo stressed the need for a cooperative approach to avoid exacerbating tensions. Spain is committed to maintaining strong transatlantic relations and working towards mutually beneficial solutions, he said. The finance minister’s comments underline the importance of dialogue and collaboration in addressing global trade challenges.

Focus on EU Trade Relations and Protectionism
The central theme of the interview revolves around the EU’s complex trade relations with China and the US. Spain’s reluctance to engage in aggressive protectionist measures, coupled with its call for diplomatic solutions, highlights the challenges of balancing national interests within the broader EU framework. Spain’s stance on tariffs reflects its cautious approach to trade policy and its desire to avoid exacerbating global economic tensions. As trade disputes evolve, Spain remains committed to engaging with key international partners and finding solutions that do not lead to harmful protectionist escalations.