The European and national agri-food sector facing the new challenge of global trade protectionism
The European and Spanish agri-food sector is facing a new challenge due to the rise of global trade protectionism, particularly following the tariff policies introduced by the United States under the Trump administration. At a panel organized by LLYC, experts analyzed the impact of these measures, which impose 20% tariffs on European products, affecting their competitiveness compared to countries with lower rates.
Despite the growth of Spanish agri-food exports to the U.S., trade uncertainty threatens key sectors such as olive oil and black olives. The European Union is proposing a strategy of trade diversification, strengthening the internal market, and investing in innovation and sustainability.
Aware of the strategic role the food chain plays in the national economy, on April 7, the Food Office of the Marketing and Public Affairs Agency, Llorente y Cuenca (LLYC), in Madrid, invited industry experts to an insightful panel discussion. The event focused on the impact of U.S. protectionist measures on the Spanish and European agri-food sector. Moderated by Fernando Moraleda, participants included Marisa Poncela, senior advisor at LLYC, and Fernando Miranda, Agriculture, Fisheries and Food Advisor at Spain’s permanent representation to international organizations in Geneva. Artica+i, as an agri-food consultancy and partner of LLYC, joined the event to analyze the conclusions. This initiative responds to the sector’s new and growing challenges, which require a multidisciplinary approach.
The exchange of information, ideas, and forecasts was very enriching, beginning with an analysis of the evolution of the World Trade Organization (WTO), which recently celebrated its 30th anniversary amid threats of a global trade war fueled by the Trump Administration. Over this time, global trade has grown, reducing costs and supporting global economic growth and poverty reduction in countries like China and Vietnam. Free trade has brought widespread prosperity.
However, the U.S. blockade of the WTO appellate body during the Obama era, worsened by current protectionist measures, has created strong uncertainty. Trump advocates punishing trade partners and reforming the WTO—something unlikely to happen before the 2026 summit.
The European agri-food sector is facing 20% tariffs applied equally to all EU countries, which, while not discriminating among European producers, do put them at a disadvantage compared to competitors such as Chile or Turkey, which face only a 10% rate. This protectionist policy has created a highly uncertain trade environment. Spanish exports to the U.S. totaled €3.764 billion in 2024, a 26.5% increase over the previous year, with a surplus of more than €1.7 billion. However, the potential for new tariffs and conflicts like those in 2018 is worrisome, especially for products such as black olives, wine, or olive oil. Poncela advocated for trade diversification and technological innovation, as well as negotiations between the EU and the U.S.
Miranda, meanwhile, stressed the need to ease tensions and accelerate trade agreements with other regions, such as Mercosur or India, to reduce uncertainty. He highlighted tariff differences in products such as milk, which faces a 15% European rate compared to the 67% imposed by the EU on American dairy.
Experts at the panel warned that these measures could also harm U.S. farmers, due to rising production costs and potential loss of competitiveness.
Europe’s Response: Strategic Autonomy and Diversification
In this new scenario of growing protectionism, the European Union must prioritize its strategic autonomy, strengthen the internal market, and sign new agreements with regions such as Asia or Latin America, where European products are highly valued. Beyond culinary value, the Mediterranean diet and responsible consumption are key trends.
Regulatory differences between the U.S. and the EU, especially on environmental matters, may provide a competitive edge for Europe by emphasizing quality, sustainability, and food safety—particularly in markets like Japan or Scandinavian countries.
In this context, the EU must reinforce its unity and prepare for an agreement with the U.S. under new geopolitical rules. The agri-food sector must adapt with a positive outlook, viewing opportunities in this change. Spain, in particular, has the chance to lead this transformation, thanks to its productive diversity and its weight in European trade.
At artica+i, we reaffirm our commitment to the agri-food sector, supporting companies in redesigning their productive and innovative strategies to face this new reality.
