The Spanish and US governments held their first high-level meeting on Tuesday after Donald Trump returned to the White House on January 20. Spain is not a priority for Washington, currently at opposite ideological poles. According to the administration's rhetoric, it is at most a problem for being the country that spends the least on NATO Defense. For leading in the EU the thesis of approaching China after Trump's anti-transatlantic turn. Or for the 'Google tax.' Hence, the meeting between Treasury Secretary Scott Bessent and Economy Minister Carlos Cuerpo comes at a crucial time, with markets in turmoil and tariff negotiations stalled.
A fair agreement with the US is essential, stated the Economy Minister, "but China also has to be a strategic partner," he reaffirmed. It was a "very constructive, very useful meeting, a very good initial contact to continue maintaining relationships from now on in all matters that benefit us and are of mutual interest, commercial, economic, financial relationships. But also a review, of course, of the current situation," Cuerpo explained upon leaving the Treasury Department, after just under an hour.
The perspective from Washington, very brief in words, in adjectives and in the usual courtesy formulas, gets to the point. "The Secretary and the Minister had a frank conversation on issues related to trade between the United States and Spain. During their discussions, Secretary Bessent emphasized the need for increased defense spending by Spain in the context of NATO. The Secretary also reiterated the United States' continued opposition to the digital services tax imposed by Spain and other countries, as well as other non-tariff barriers," said the statement released by the Treasury hours later.
The positions are known, but not necessarily closer. Spain is concerned about tariffs, the future for the wine sector, olive oil, and many others, and the growing distance. The US is concerned about Defense spending, China, and the interests of technology companies.
"One of the elements we have precisely discussed is the trade conflict that has arisen with the measures implemented by the administration, and about that open door to negotiation that was opened last week with the 90-day moratorium. We are convinced that we can reach an agreement that is balanced, fair, and beneficial for both parties. The starting point for the negotiation right now is the existence of new tariffs by the United States. The moratorium only applies to part of the total tariffs, and for us, a balanced solution must take into account the whole," the Spanish official pointed out.
Cuerpo emphasized that today's meeting was not for negotiation, as the EU's trade policy is negotiated by the European Commission, whose representative, Vice President Maros Sefcovic, was in Washington just yesterday. However, they discussed the situation and market reactions. Likewise, Bessent brought up Spain's Defense spending. And inevitably, the issue of China.
The meeting comes just days after the Treasury Secretary used Spain's case at a banking forum in New York, following President Pedro Sánchez's statements, to warn Europeans that they were making a mistake. It was not a threat, but a way to warn them, saying that trying to ally with China is "like cutting your own throat." Because if the US closes its market to Asian exports, they will seek another place, and with "dumping" and their "illegal" measures, they would flood European markets with cheap products, destroying jobs and sectors.
"The position of the European Union, not just Spain, is very clear. The agenda we have had from the European Union with China in recent years is clear. Of course, we are aware that it is a rival, a competitor in many areas, but it also has to be a strategic partner. We have to reach agreements for the benefit of both regions, there is ample room to do so," Cuerpo said. "And we must continue to advance in this negotiating process to deepen and reach an agreement with the United States to continue advancing in this relationship, which is the largest in the world, a third of the global economy."
Regarding the controversial Defense spending, Secretary Bessent also addressed the issue. "Indeed, we have also been discussing elements related to Defense spending, security, both within the framework of NATO and the European Union. We have put on the table the arguments that the Prime Minister has made, indicating that we should not only talk about Defense but also broaden the concept of security, that for a country like Spain, elements related to cybersecurity are fundamental. And of course, from Spain, we will meet the 2% target that we already had within the framework of NATO and we will do so in advance. We will fulfill our commitments, and Spain will also be part of the solution, but let's not forget that from the European perspective, there must also be a joint element of financing these expenses. Countries have to make that effort, but there must also be a European vision because we are talking about protecting a public good such as security and defense," he concluded.
Spain requested a meeting a month ago, it had to be postponed, and it took place today, despite the minister having to return to Washington next week for the spring meetings of the World Bank and the IMF. And despite the doors of the US administration not being wide open for Europeans. Yesterday, Commissioner Maros Sefcovic, who is leading the tariff negotiations with his counterparts, was in town. But other colleagues have not been as fortunate. The High Representative for Foreign Policy Kaja Kallas crossed the pond only for Secretary of State Marco Rubio to refuse to meet her. Other commissioners have come almost without an agenda. And even those who have been received by regulatory agency officials, as was the case last week with Teresa Ribera, have not had political meetings at a higher level.
This is, in fact, the highest-level contact between both governments since Trump returned to the White House on January 20. Marco Rubio spoke on the phone a few days ago with José Manuel Albares, after a conversation between Deputy Secretary of State Christopher Landau, and Spain's Secretary of State for Foreign and Global Affairs, Diego Martínez Belío, paved the way.
Prior to the main meeting, Cuerpo met with a group of US companies in the financial, pharmaceutical, and technology sectors, organized by the American Chamber of Commerce. According to ministry sources, "Cuerpo conveyed a message of confidence and certainty to the companies in the face of a complex and volatile international context. He highlighted the achievements of the Spanish economy as a driver of European growth and an investment destination, which recognizes the economic policy adopted and the tangible benefits for companies.
Hours later, Cuerpo also met with World Bank President, Ajay Banga, to advance discussions on the development finance conference to be held in June in Seville. During their meeting, they both emphasized the importance of strengthening multilateral cooperation to move towards more sustainable and fair growth," the Ministry stated.