On 20 January, while signing a series of decrees in the Oval Office, the new President of the United States, Donald Trump, mistakenly referred to Spain as a member of the BRICS bloc (Brazil, Russia, India, China, and South Africa). This error has sparked significant discussion in Spain, both economically and politically.

The confusion has caused unease among many, prompting questions about whether Spain remains a strategic priority for the US. The Public Affairs sector in Spain has responded with uncertainty and concern, particularly regarding future trade relations with the European Union. With Trump’s arrival, protectionist measures are expected to increase on both sides of the Atlantic.

Uncertainty and Its Impact on Trade

The most challenging aspect to predict is the impact of the Trump administration’s ‘America First’ policies on Spain, particularly in relation to the European Union. Three key issues remain unresolved:

1. The extent of protectionist trade measures, particularly tariffs on export products.
2. New energy policies, with a shift away from the green economy prioritised by the Biden administration, and a push for nuclear energy as a cheap, efficient, and now ‘green’ option.
3. The degree to which Trump will challenge the New World Order, including potential demands for increased spending by international organisations like NATO. Trump has called for European defence contributions to rise from 2% to 5% of GDP. In his previous administration, tariffs were imposed on black olives as a punitive measure, with no possibility of renegotiation.

Considerations for the Spanish Government

Three types of companies are likely to benefit from the American administration: financial, industrial, and technological. Spanish companies wishing to capitalise on this growth should establish strategic and commercial relationships with US-based firms and build trust with Republican lobbies.

The Spanish government must acknowledge that Spain is not a strategic priority for the United States, which has recently favoured a more stable alliance with Morocco. Spain’s lack of a clear geopolitical roadmap and inconsistent foreign policy—combined with the current government’s nuanced positions on conflicts in the Middle East, Venezuela, and Cuba—have widened the gap between the US and Spanish governments. Consequently, Spain’s global influence is declining.

Despite this, Spain currently boasts the strongest macroeconomic data in the eurozone, which the government could leverage to create opportunities and shared interests with the American administration.

This article was written by Javier Corrales, Head of Public Affairs at Grayling Spain. The article originally featured in PR Noticias.