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Donald Trump signing decrees in the Oval Office after his inauguration as President. Reuters
Trump's Tariffs on the EU Threaten 1,800 Jobs in Alicante Province

Trump's Tariffs on the EU Threaten 1,800 Jobs in Alicante Province

Agriculture, footwear, and ceramics are the sectors most affected by the policies proposed by the new US President

Óscar Bartual Bardisa

Alicante

Viernes, 24 de enero 2025, 13:11

Donald Trump's entry into the White House has left no one indifferent. Among his many controversial measures are the tariffs he intends to apply to the European Union in foreign trade. These price increases could result in a significant number of direct job losses in the province of Alicante.

If these levies imposed by the American president come into effect, 1,800 jobs in Alicante province would be at risk, many of them in the footwear sector. This is according to the Institute of Economic Studies of the Province of Alicante (Ineca), which has produced a report detailing the impact of the new US government's foreign policies.

Alicante is the twelfth Spanish province that exported the most to the United States between January and November 2024, with 406 million euros, far behind others like Barcelona, Madrid, Valencia, and Castellón. However, Alicante's role is more significant when analysing the two products most sold to North America.

The first group is agriculture, and of the 3,116.85 million euros that Spain exports to the United States, Alicante ranks sixth in trade volume, with 165 million euros. Regarding consumer manufactured goods, Alicante rises to third place in Spain with 145 million euros.

Two very important sectors in Alicante's economy would be affected by these tariffs, with a total of 1,800 direct jobs at risk, but also indirect jobs from companies that provide services to the primary sectors. Thus, Ineca estimates that 42% of these jobs, about 700, would be in the footwear sector, followed by 23% in food and 6% in ceramics and stone.

The president of the Institute, Nacho Amirola, has expressed "concern" about this announcement despite the decline in trade relations with the United States, which only accounts for 6.5% of the total exported from Alicante. Nevertheless, Amirola has emphasized that these sectors "are the ones with the highest added value" and urges them to "seek new markets to avoid endangering the province's per capita income."

It is worth noting that the relationship between the province and the American giant has declined in the 21st century. At the beginning of 2000, they accounted for 13% of the total, and 23 years later, they have fallen to half, representing only 1% of the provincial GDP. This change is directly related to the increase in sales to the European Union, according to the report's author, Francisco Llopis, director of Studies at Ineca.

Sectors most affected

The most exported products to the United States are manufactured goods, which reached 149 million euros last year. Between January and November, foreign trade with this country totalled 406 million euros, with footwear registering the highest sales volume at 111.7 million euros.

The products are experiencing a mixed situation. While footwear sales account for 11% of the total, sugars and confectionery items make up 44.3% of total foreign sales, which could pose a serious problem for specialized industries in the sector, which last year billed 35.91 million euros.

Other products that have a significant market in the United States, representing 29% of their sales, are organic chemicals. If the tariff increase is confirmed, other activities, such as books, publications, and graphic arts, would be seriously affected, as the US market is the main export destination.

Thus, this sector exports 2.45 million euros, half of its foreign trade revenue. It is followed in importance by sugars and antiques and art objects, which sell 43.9% to this market, although the value of what is exported does not reach 900,000 euros.

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