U.S. President-elect Donald Trump's recent tariff threats have been dismissed by Spanish residents, though many believe the move will likely have a limited impact on consumers.
Trump stated in December 2024 that the European Union should increase its imports of U.S. oil and gas or face tariffs on its exports, which include goods such as cars and machinery.
Throughout his election campaign, Trump threatened to impose tariffs ranging from 10 to 20 percent on all products from the United States' trading partners, including the European Union.
Speaking in street interviews with China Global Television Network (CGTN) in Madrid, residents criticized the U.S. president-elect's move as a protectionist approach that bears bad consequences.
"He already did that during his previous term, which created challenges for the entire planet. It appears to me that this complicates international relations," said Juan Grau, a resident.
"It looks like yet another action from Donald Trump – unreasonable and one-sided, without regard for the potential consequences for his people and country, as well as the conflicts that might emerge," said Marta Linares, another resident.
"It's a mistake in a globalized world where goods and trade have a general flow, and nothing will go well in that protectionist way," said resident Pablo Martinez.
Most of those interviewed said they believe the U.S. imposing tariffs will have a negative economic impact on Spain and Europe overall.
"I believe the impact on Spain will be significant because, after all, we have a series of businesses or products that the American market demands," said Linares.
"I believe it will affect the European economy overall, because, broadly speaking, when one country imposes tariffs on other countries, those countries will also take similar retaliatory measures against that country, resulting in a contraction. Everything will grind to a standstill," said Martinez.
However, people expressed the belief that the move will have a limited impact on individual consumers.
"As a consumer, I realize that ultimately, this creates a snowball effect. Initially, it shouldn't impact me too significantly since I'm not a business owner. However, this is indeed a snowball effect. When one product gets more expensive, it triggers a chain reaction, and eventually, it will certainly affect me in some way," said Linares.
"I don't believe it will affect me at all. It may have an impact on the global economy, which could lead to a decrease in people's purchasing power, but beyond that, I can't really say," said Pamela Ravina, another resident.
"In the short term, I don't anticipate any impact since that's more of a business issue. As a consumer, I think it won't affect us in the immediate future," said resident Yago Martinez.
Spanish residents share views on Trump's tariff threats
A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.
Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.
"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.
U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.
The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.
"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.
South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.
A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.
"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.
Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.
"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.
South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.
Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.
US tariffs rock South Africa’s auto industry
