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Date Published: 07/04/2025

Spain cosies up to China to soften blow of US tariffs

The country is looking to Asia to diversify trade as the new American tariffs threaten European exports

President of the Government of Spain, Pedro Sánchez, is set to visit China and Vietnam this week, aiming to open new markets and strengthen trade ties in response to sweeping US tariffs recently announced by Donald Trump. The trip comes just days after the US president unveiled a 10% universal tariff and a 20% tariff specifically targeting European Union products.

Although Moncloa insists that the visit is not designed to counter the United States or replace existing trade relationships, government sources admit the trip is part of a broader strategy to diversify Spain’s economic partners amid escalating global trade tensions.

Sánchez will be in Vietnam on April 9 and 10, followed by a visit to China on April 11, when he is scheduled to meet Chinese President Xi Jinping in Beijing. The meeting coincides with the 20th anniversary of a key bilateral cooperation agreement between the two countries.

While Spanish officials stress that plans for the visit were in place since September 2024, when the two leaders last met, the timing aligns closely with the implementation of Trump’s tariffs, which take effect on April 9.

China and Vietnam are among the countries hardest hit by the new US trade measures, with China absorbing the highest tariff burden at 54%, followed by Vietnam at 46%. This context places Sánchez’s visit at the centre of a shifting global trade landscape.

The Spanish government has framed the trip as an opportunity to push forward its goals of strategic autonomy and market diversification. Though China remains a complex partner – viewed by the EU as simultaneously a collaborator, competitor and rival – Sánchez intends to focus on strengthening cooperation in trade and investment.

A key issue on the agenda is Spain’s significant trade deficit with China. Imports from the Asian giant total around €45 billion, while exports sit at just €7.4 billion, leaving a deficit of approximately €38 billion. Sánchez is expected to raise this imbalance in talks, while also encouraging reciprocal investments.

Vietnam presents a similar imbalance, with Spain importing €5.2 billion and exporting just €530 million in return. However, the Spanish government notes that Spain’s exports tend to be of higher added value, suggesting untapped potential for a more balanced economic relationship. With Vietnam’s economy expanding rapidly, the Spanish government sees a window of opportunity to boost trade and address export barriers.

During his two-day visit to Vietnam, Sánchez will first stop in the capital Hanoi for a round of high-level meetings with the country’s top political figures, including the general secretary of the Communist Party, the president, the prime minister and the president of the National Assembly.

On April 10, he will travel to Ho Chi Minh City, Vietnam’s economic hub, to meet with business leaders and attend an economic forum. The event will aim to help Spanish companies increase their foothold in the Vietnamese market, particularly in sectors with high growth potential.

Image: La Moncloa

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