The 20% tariff on EU exports to the US may have been postponed for now, but there is still the ten per cent baseline rate and considerable uncertainty. And although the overall impact of the 10% tariff on Balearic exports may seem limited at first glance, some specific sectors could suffer significant consequences.
Balearic Government figures indicate that exports to the US between 2017 and 2024 represented barely two per cent of total exports. The accumulated value was 312 million euros. This contrasted, for instance, with the €2.5 billion for Germany. While there has been mention of products such as wine and olive oil, the largest sales over this period were for locust bean gum, also known as carob gum - carob seeds provide a thickening agent in food technology. The value was 48.1 million euros. Footwear and cosmetics ranked second and third.
The US is the ninth largest export market, but it is the third largest supplier of imports, the share having shot up from less than four per cent in 2019 to 22% in 2022, partly because of the war in Ukraine.
From 2017 to 2024, air navigation equipment (€124.2 million) was the largest import. This was followed by chemical and pharmaceutical products, nuts, and energy machinery. Between them, these four accounted for 20% of all Balearic imports from the US.
Since 2017, the trade balance with the US has consistently been negative, except in 2020. The deficit reached its peak in 2022 - €460 million. This reflects a dependence on imported strategic products compared to exports.
The postponement of the 20% tariff has led the government to freeze some of the six million euros of funds that were announced to combat the impact. Catalina Barceló, the director-general for the economy, says: "We will have to get used to these ups and downs and to the uncertainty, which is never good for the economy because it creates instability in the market. We will support the affected sectors because it is not easy to change markets overnight."
Barceló admits the government is concerned about how the tariffs may impact tourism: "It is too early to see the consequences, but everything indicates that growth will slow. We must keep an eye on Germany, the UK, France, Italy. If things go badly for our source markets, things will go badly for us."
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Stan The ManAmmend . Should read :- America should seriously be removing Trump. Also If he continues with his Tarrif charge increases. I fear for his life. One Assasination attemp failed. The next will not fail.
Another complex article. BUT. I think America should seriously removing Trump. Already he has caused chaos throughout the world. It is time now to:- " DUMP TRUMP ".