The Spanish government approved a series of measures on Tuesday designed to counter the impact of the 20% tariff imposed by US President Donald Trump on goods from the European Union.

The Commercial Reply and Relaunch Plan was given the go ahead during the Spanish cabinet's weekly meeting, following its announcement by Prime Minister Pedro Sanchez on 3rd April.

During a press conference following the cabinet meeting, government spokesperson Pilar Alegria referred to the Plan as a protective “shield” and a “step forward in protecting businesses and workers.”

The Plan encompasses measures aimed at boosting investment, liquidity, and exports from Spanish companies, as well as providing guarantees to facilitate access to financing and extending the debt moratorium for obligations incurred during the COVID-19 pandemic.

During Tuesday's press conference, Spain's Economy Minister Carlos Cuerpo stated that while “we are in an initial moment of elevated uncertainty,” approximately 80% of the products Spain exports to the United States will be impacted by the new tariffs.

“It is too early to try and estimate the effects as there are many unknowns (...) We are going to have to follow events on an almost daily basis and adapt our response,” the minister commented, going on to add that some 500 firms would require direct help.

When Sanchez revealed the measures on Friday, he described them as “an immediate safety net” and a strategy to safeguard sectors that might be impacted by the tariffs on exports to the United States.

“They will concentrate on reorienting our productive capacity and relaunch our economy in the new global context,” Sanchez stated.

On Wednesday, Trump signed an executive order imposing a 10% “minimum baseline tariff” on all imports, with higher rates for specific trading partners, including a 20% tariff on imports from the EU.