Sánchez will strengthen economic and trade relations with Vietnam and China following Trump’s tariff hike

The President of the Government, Pedro Sánchez, will travel this week to Vietnam and China to strengthen economic and commercial relations following the increase in tariffs imposed by his American counterpart, Donald Trump.

This is the Prime Minister’s first trip to Asia this year, to an area that is now gaining particular importance after Trump announced on Wednesday that he will apply a universal 10% tariff, in addition to additional levies reaching 20% ​​for the European Union, 34% for China, and 46% for Vietnam, among other countries.

Specifically, and given this new geopolitical context, Sánchez will visit these countries with the dual objective of trade and economy, to diversify markets in line with the strategic autonomy that the Prime Minister has championed within the European Union, with which this tour has been coordinated.

To this end, the president will be accompanied by the Minister of Foreign Affairs, the European Union, and Cooperation, José Manuel Albares, and the Minister of Agriculture, Fisheries, and Food, Luis Planas. Sánchez’s agenda includes visits to the Vietnamese cities of Hanoi and Ho Chi Minh City on Wednesday and Thursday, respectively, and Beijing on Friday.

This is the first official visit by a Spanish Prime Minister to Vietnam. Specifically, in Hanoi, Sánchez will meet with the country’s four highest authorities: the President, the Prime Minister, the Secretary General of the Communist Party, and the President of the Assembly. Therefore, the trip also has political significance, according to sources at Moncloa.

DIVERSIFY MARKETS

The same sources emphasize that this is not a trip to replace the existing relationship with the United States, but rather to diversify markets, open up opportunities, and reduce dependence. Therefore, Sánchez will travel to Vietnam accompanied by a group of Spanish businessmen and will participate in a business forum in Ho Chi Minh City.

A joint declaration is also expected to be adopted and a series of mechanisms will be promoted through the signing of memoranda of understanding to develop both political and commercial aspects. These memoranda will facilitate dialogue to implement different policies in areas such as agriculture and fisheries. A memorandum of understanding will also be developed in Culture and Sports, as Spain has a strong global presence in these areas, and this is something of great interest to the Executive, according to sources within the Executive.

Finally, a financial agreement worth 300 million euros will be signed to promote the entry of Spanish companies into Vietnam.

Sánchez will then travel to China to meet in Beijing with representatives of major Chinese companies with potential investors in Spain. He plans to sign an agreement prepared following complaints from the Spanish medical, pharmaceutical, and cosmetics sectors following his previous visit, which will facilitate his presence in the country.

This also aims to reduce Spain’s large trade deficit with both countries, according to sources at Moncloa. The government’s objective is to correct the significant trade imbalance, which represents more than 70% of Spain’s total deficit, approximately €38 billion.

Sánchez’s meeting with Chinese President Xi Jinping next Friday coincides with the 20th anniversary of the comprehensive strategic partnership between the two countries, an event on which the Chinese authorities have also invited the King and Queen to make a state visit to their country in 2025.