Neither France nor Germany, this is the rising European country that’s not afraid of Trump’s tariffs

Still only a few days into his second term in office, President Donald Trump has wasted little time in getting stuck in to his agenda. On Inauguration Day he signed a record 26 executive orders, spanning everything from immigration reform to a release for 1,500 January 6 prisoners.

It seems like he’s only just getting started. Trump has made clear his intention to raise tariffs for goods entering the United States. This would require American companies importing the goods to pay extra for goods from overseas, ultimately affecting consumers when the increase is passed on to them.

This will make goods from affected nations much less desirable and many European countries - France, Italy, Germany - are fearing substantial damage to their US exports. There is, however, one major European nation that could be less negatively affected.

Why isn’t Spain affected by tariffs?

Spain’s economy is not overly reliant on the types of goods affected by tariffs, relying instead on a booming tourism industry. In recent years that has been bolstered by an influx of US visitors that has powered significant economic growth. That expansion made Spain the fastest-growing European economy in 2024, even outstripping the US economy.

The Spanish Industry and Tourism Ministry told CNN that more than 94 million overseas visitors traveled to Spain in 2024, spending an estimated $132 billion. This trend was initially fuelled, in part, by a boom post-lockdowns. However as time moves on, and the Spanish tourism industry continues to flourish, it looks like there’s more at play.

“However, that time is over and the tourism sector (in Spain) still appears to be strong,” economics professor Juan Pedro Aznar Alarcon wrote last year. “There has probably been a change in consumer priorities and the way families spend their money, cutting back on other outgoings but making well-deserved holidays one of life’s essentials.”

If the Spanish government can continue to ride this wave of tourism and continue welcoming American travellers to the country, the much-feared Trump tariffs may not have too bad an effect.

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