Donald Trump’s imposition of universal tariffs of 10% and specific rates of 20% on the European Union , effective since April 5, represents a direct blow to European foreign trade .

The decision is part of an aggressive trade policy that is already being hailed as the most protectionist of the century and was taken as a declaration of trade war.

From Brussels , European Commission President Ursula von der Leyen announced that the bloc is “prepared to respond” to what she described as “a deeply damaging decision for the global economy.”

In line with this, several member countries are evaluating countermeasures to cushion sectoral impacts , especially in the steel, automotive, and energy sectors.

Spain, facing the impact on energy

In an interview with Strategic Energy Europe, Alejandro Labanda, director of Energy Transition at beBartlet, stated that these tariffs generate “great uncertainty in the short term for industrial investment,” especially in key sectors such as the manufacturing of components and technology linked to renewable energy.

“These measures will have an impact on investments and costs throughout the entire value chain,” he asserts.

The concern extends not only to manufacturers, but also to companies that already export products or services to the United States.

According to José Donoso, Director General of UNEF, the Spanish solar industry could be affected by rising costs in specific technologies.

“It’s going to have higher costs because there isn’t a competitive product in the United States; the quantities are small. Therefore, everything that’s imported is going to have an increase,” the executive explains.

Donoso points out that this impact will depend on the local US industry’s ability to replace European products: “If the US industry isn’t able to produce it in the short term, it will have to continue purchasing Spanish technology, but at a more expensive price.”

Consequently, the rebound effect could be reflected in electricity prices. “The company that buys technology to sell electricity will have to sell it at a higher price. In the end, it’s the American electricity consumer who pays,” Donoso points out.

Indirectly, this rise in prices could reduce the competitiveness of European companies compared to other markets and slow down energy industrialization initiatives in the region, something that is particularly worrying in contexts like Spain, where the focus is on attracting investment.

The concern is widespread. A relevant fact is that, according to a recent survey conducted by beBartlet, 70% of Spaniards are concerned about the impact of tariffs on domestic companies. This is a topic of debate across all political parties, but it is more pronounced in regions with high levels of exports to the United States, such as Catalonia, Valencia, and the Basque Country.

Nervousness in the markets

The other major direct consequence of the measures is felt in the financial markets. Energy company stocks were the first to register fluctuations, especially those with greater international exposure.

Market consultant Jon Belda Sánchez describes the current outlook as “a state of high volatility and fragility,” a product of the uncertainty generated by Trump’s policies.

“Repsol is the most directly affected stock, but these measures will resonate throughout the energy market,” he warns.

Repsol ‘s shares over the past month clearly reflects the impact of the new geopolitical and tariff scenario.

According to market data, the stock price fell 6.25% in 30 days , from around €12 to €11.40 on April 3.

The sharpest decline came after Trump’s formal announcement of the tariff measure, suggesting a direct market reaction to the uncertainty surrounding international trade and Repsol’s exposure to Venezuelan crude oil and other international operations.

This behavior also aligns with the downward trend observed in other energy stocks on the IBEX 35.

Belda points out that, although no serious short-term consequences are expected, stock market fluctuations have already been identified that could affect stocks such as Acciona in the coming weeks.

Furthermore, he argues that the Repsol case, following the revocation of its operating permit in Venezuela, further exposes its vulnerability to geopolitical measures such as tariffs.

“I think there’s a lot of general nervousness, and this is a planned and conceived opportunity. Trump knows how to focus and shake up the markets,” the expert says, referring to the president’s ability to influence financial expectations.

The IBEX 35 index also reflected the impact with a drop of more than 1%, in line with the performance of other European stock markets.

The price of crude-linked stocks, such as Repsol, plummeted, and further pressure on the sector is anticipated due to a possible rise in raw material prices and restrictions on specific imports.

Belda recommends hedging strategies: “I would focus on diversification, both in terms of stocks, commodities, and geographic opportunities. Market instability will impact the performance of other stocks,” he warns.

Trump’s tariff offensive opens a new era of trade tension that is testing the resilience of the European energy sector.

Faced with this scenario, industry voices agree: the European response must be swift, strategic, and cohesive, to prevent external protectionism from resulting in paralysis or setbacks on the path toward a cleaner, more competitive, and more autonomous energy system.

Spain, with a strong exposure to renewable technology and a growing interest in attracting industrial investment, is concerned about how these movements could affect its competitiveness and energy transition goals.

The plan announced Thursday by President Pedro Sánchez to counter the impact is valued at €14.1 billion and is structured around two pillars: immediate protection measures for businesses and employment, such as €6 billion in guarantees from the ICO (Spanish National Institute of Statistics and Census), industrial loans, and incentives for the automotive sector; and a recovery block, which includes a specific fund financed with EU tariffs, a special framework for state aid, and the reorientation of €5 billion from the Recovery Plan to transform vulnerable industries. 

On April 9, European Union member states will discuss possible responses to the US tariff offensive.

Labanda anticipates that this meeting will be crucial for the future of transatlantic energy trade: “That day, the bloc’s common position will be discussed, and Spain will have a leading role in determining whether to respond with countermeasures or internal incentives to strengthen the industry,” he maintains.

According to the official, there is consensus that the European Union must adopt a response strategy that is not limited to a one-off or symbolic reaction, but rather includes structural measures to protect the European industrial fabric.

“It is necessary to put protection mechanisms on the table for the European renewable energy industry, which could now lose competitiveness to technologies manufactured in Asia or the United States without the same barriers to entry,” he emphasized.

He also argues that the real risk lies not only in the rise in export prices or the fall in foreign direct investment, but in the loss of industrial autonomy that Europe has been trying to reverse since the pandemic and, especially, since the 2022 energy crisis.

In this regard, he warns about the mistakes that could be made if a short-term vision is adopted. 

“If Europe responds with poorly designed protectionist measures, it runs the risk of repeating cases like Argentina, where import tariffs protected local industry but also generated serious quality problems when those products were released to compete abroad,” Labanda reflects.

And he adds: “The key is not to close in, but to invest in automation, technological innovation, and new industrial capabilities that improve structural competitiveness.”

On the other hand, he highlights that Spain could occupy a strategic position in this transformation, thanks to its growing leadership in renewable energy and its ability to attract investment in storage, photovoltaics, and green hydrogen.

“If incentives are well articulated from Brussels and a stable regulatory framework is ensured, Spain has the opportunity to be one of the big winners in a new, more decentralized European industrial landscape,” the expert notes.

Within this framework, industry players await concrete decisions from the Spanish government, which has yet to officially announce whether it will promote accompanying or compensatory measures for the sectors most exposed to the trade war.