8 ILLINOIS BUSINESS LEADER CONNECTING Tariffs may be (or may be not) “the most beautiful word in the dictionary” but the uncertainty they bring is surely not appealing neither for importers (the main goal of current US trade policy) nor exporters (the unwanted side effect of that policy). The reason being is that quite often, companies are both exporters and importers at the same time. That is in fact what lies behind global value chains: an interconnected network of multiple companies in several countries trading goods and adding value at each step. Such global value chains were already affected a few years back with the Covid-19 pandemic and the Russian aggression on Ukraine, which resulted in new terms such as near-shoring or friend-shoring, concepts which translate into shortened value chains as a way to reduce global risks. Tariffs are just another straw on the camel’s back (although I hope the camel can carry on). In conclusion, if life gives you lemons, make lemonade or, in other words, if life gives you tariffs, then try to produce locally. If this holds true for Spanish exporters to the US, so it does for US exporters that are part of global value chains, who need to think how to better cater their customers in foreign countries as they are also affected by import tariffs on some (or most?) of their inputs. And if those customers are located in Europe, North Africa or even Latin America, here is where Spain has something to say, as it is a natural gateway to those markets. Spain, with a population of 48 million people (and almost 100 million tourists that visited our country in 2024) is the 4th largest economy in the European Union (EU) and 15th in the world. Moreover, in 2024 it grew by 3.5%, three times faster than the EU average. In its most recent World Economic Outlook, IMF forecasts Spain to grow by 2.9% this year 2025, well ahead again of most developed economies, while keeping inflation under control. Rapid growth in international trade and foreign investments has made Spain one of the most internationally engaged countries in the world. In fact, in 2024, Spain was ranked 19th in the world as an exporter and 15th as an importer, while in the trading of services it occupies 11th place as an exporter and 20th place as an importer. In terms of investment, Spain is also a key world player: according to UNCTAD, WIR 2025, Spain is the 12th largest recipient of FDI worldwide (and 6th in the EU) with SPAIN | Your Partner in Europe Erik Rovina Trade Commissioner of Spain in Chicago
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