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Andalucían exports to the United States dropped sharply in May, the first full month after new 10% tariffs came into effect. Sales to the US fell by 40% compared to May last year, falling from nearly €350 million to just €205 million.

 

While overall global sales from Andalucía only declined by 2.6% that month, the US drop was much more dramatic. The decline is partly due to falling prices in key products like olive oil and refined petroleum.

 

These two items make up a big share of Andalucía’s exports to the US. Olive oil sales to the US fell by 18%, while refined petroleum sales dropped by a staggering 88%, from €117 million to just €13 million.

 

Even when fuel is excluded, exports to the US still fell by 8%, which is three times more than the total drop in Andalucían exports that month. Though refined petroleum is not affected by the tariffs directly, global market instability and fears of a recession have driven prices down.

 

Other important Andalucían goods also saw reduced demand. Aeronautics dropped by 39%, ceramics by 44% and products made from stone and plaster by nearly 24%. Electrical equipment fell by 8% and cereals and pastry goods declined by 4%.

 

However, there were some exceptions: fish, crustaceans and molluscs grew by 35%, and olive sales ticked up 2.7%, though that increase is likely temporary.

 

From January to March, Andalucían exports to the US were down 12%. But once the 10% tariffs kicked in on April 5, the fall deepened. In April and May combined, the drop was 28%. In May alone, the full tariff impact was visible. The US now represents 6.2% of Andalucían exports, compared to 7.8% this time last year.

 

Overall, Andalucían exports grew slightly by 0.92% in the first five months of the year, reaching €18.2 billion. Imports dropped by 2.3%, which helped double the region’s trade surplus to €1.066 billion.

 

The tariffs are part of wider US measures announced by President Donald Trump, who initially proposed a 20% duty on EU goods before scaling it back to 10%. He has threatened to raise tariffs again on August 1, possibly up to 30%.

 

The EU is preparing a €72 billion response if no agreement is reached. Spain’s economy minister has confirmed that €22 billion worth of national exports are affected, €3.1 billion of which come from Andalucía.

 

 

Image: Michael Vadon via Wikimedia Commons