According to the Gipuzkoa Chamber of Commerce, when protectionist tariffs are introduced, companies should increase their productive presence in the destination country.
The Basque economy is watching closely election results in the United Statesand are willing to do so change your foreign strategy towards that country, despite the economic policies that this will entail Donald Trump.
The Republican candidate’s victory could mean an increase in rates, just like during his first term. Currently, 1,000 companies in the Basque Autonomous Community regularly export to the United States. Last year they exported 2,737 million euros.
It is the third destination for CAV exports, after France and Germany, but given the weakness of European countries, the United States has become a very important market.
Likewise, after Mexico, it is the second country with the largest presence of Basque companies, something that could strengthen Trump’s victory. Although it is still early to know the exact impact of the Republican victory on Basque companies, it could mean a change in the companies’ foreign strategy.
According to the Marketing Director of the Gipuzkoa Chamber of Commerce: Inigo MuguruzaOne of the consequences of Trump’s victory could be that his market ‘closes more’. Therefore, “you have to change your strategy to achieve sales in those markets.”
“If tariffs are imposed, it will be the companies that increase their investments in these countries and perhaps we will see more implementations,” Muguruza explained. Currently, there are 137 Basque companies based in the United States.
Javier Zubiageneral director of the Chamber of Gipuzkoa, adds that “the company is going to adapt,” and it is possible that Trump’s greater protectionism “will force greater productive implementation of companies in the United States.”
Furthermore, the growth of the US economy will “continue to provide good opportunities” for Basque companies. “In good logic, we will be able to benefit from this,” he says.
The Spanish stock market fell
While US stock markets rise, Spain’s stock market falls sharply on the day of Trump’s victory.
Julen Bollainprofessor at Mondragon Unibertsitatea, explains that imposing tariffs of 10-20% “will affect a number of important sectors: automotive, chemicals, etc.”
“The problem will lie with European companies,” he says. Massimo Cermelliprofessor at the University of Deusto.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
