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Trump Tariffs’ Effect On The EU

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The EC is ready for retailiatory tariffs vs. the US | Dati Bendo EC-P-P-065015/00-02

WHILE Donald Trump debates sweeping “reciprocal” tariffs on dozens of countries worldwide, the European Union responds decisively. The question now, however, is how these tariffs might affect the EU and its citizens.

Yesterday, Trump implemented the long-announced tariffs but immediately later announced a 90-day pause on tariffs except for China, where the president’s 125% tariff took effect. The EU had immediately retaliated with 25% general tariffs on all U.S. goods. 

The EU’s retaliatory tariffs target a wide range of US products, such as poultry, orange juice, rice, tobacco, soybeans, aluminum and steel, luxury yachts, motorcycles, diamonds, makeup products, and clothing, affecting trade totalling $22 billion per year.

“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides and the global economy,” said European Commission (EC) President Ursula von der Leyen in an EC statement

However, the EC had also said its countermeasures could be suspended at any time if Washington agreed to a fair and balanced negotiated outcome.

Initial European market tariff after-effects

The first effect of Trump’s trade war escalation measures in the EU was that shares slumped by about 2% during the first hours of April 9.

For example, the pan-European STOXX 600 (.STOXX), slumped 2.4% at 07:49 GMT, after the previous session’s rally ended weakly. At  10:00 GMT, the losses widened. The STOXX 600 had fallen 2.96%, and by midday, the decline hovered over 3.20%

Euro STOXX 50 was down 2.54% early in the session, but by 1200 GMT it neared 2.85%. France’s CAC 40 declined 2.53% to 6,935 and continued its descent by 3.78% to 6,830 by midday.

“The trade-sensitive Germany’s benchmark index (GDAXI), fell 1.7%,” while the STOXX 600 currently sits at about 15.5% below its all-time closing high and very close to the 20% threshold that would confirm a bear market, Reuters said.

Thanks to Trump’s tariff reversal on Thursday, STOXX Europe 600 rebounded 5.12 per cent, Euro STOXX 50, 5.4 per cent, and France’s CAC 40 soared 6.1 per cent. 

 What EU citizens can expect 

Trump’s tariffs on the EU could lead to deflation or lower prices in Europe, as US duties could also increase supplies from China and the European Union.

“One of the factors that will lead to lower prices in the EU will, of course, be exports from countries like China, which are now being redirected towards Europe,” Niclas Poitiers, a researcher at the Bruegel think tank, recently told Euronews.

Poitiers said a second factor remains in the market, explaining that if you currently have high customs tariffs on Italian wine, more of that wine would stay closer to home, leading to a price drop.

However, lower prices appear excellent for purchasing power, consumption stimulation, and growth, which could lead to deflation, adversely affecting the EU’s economy. Why? When prices begin to fall, people tend to hold off on purchases in hopes of further price drops.

The Bank of Spain explains that while lower prices may seem reasonable, they can create a vicious economic circle by driving down spending and investing, leading to lower economic growth and higher unemployment.

Tobias Gehrke, a researcher at the European Council on Foreign Relations (ECFR), told Euronews that uncertainty is perhaps the greatest risk to the economy and agreed that it could negatively affect employment and growth in a few months or years.

“These customs duties are generalised. All products, all exports from Europe to America will be affected. Think of machinery, chemicals, and cars. These companies may now face a burden”, Gehrke said.

Economic downturns, recessions, and recoveries are mostly impossible to predict accurately, as no one, not even economists, has a crystal ball. So it’s best not to panic, but it’s okay to always prepare for worst-case scenarios.

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Biggest Cruise Ship To Dock In Mallorca

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Biggest ship in the world. Credit: Wiki CC

In May, Royal Caribbean’s ‘Allure of the Seas’, the world’s biggest cruise ship, will dock in Palma de Mallorca, bringing a mountain of economic benefits.

Carrying 139,000 turnaround passengers and 2,384 crew members, the ship is expected to generate €8 million in passenger spending and an additional €500,000 from the crew. With 22 eight-hour stopovers planned between May and October, the ship will give a boost to Mallorca’s tourism and commercial activity.

Palma’s Mayor Mateu Isern spoke of the ‘spectacular’ growth of cruise tourism, making Palma Spain’s second-largest cruise destination and the Mediterranean’s fourth. The 362-metre-long ship, with capacity for 6,318 passengers, features seven themed areas, including an Aquatheater, Central Park with 12,000 plants, and Broadway’s musical ‘Chicago’. The Balearic Port Authority’s investments have made Palma an irresistible hub, contributing to a €27 million economic impact across Spain.

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Richest Mallorca Customers Not Who You Think

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Enjoying life to the fullest after 55. Credit: Shutterstock

In the Mallorca, the Silver Generation, or ‘Sellenials’ (aged 55-74), as they are known here, are coming out as the dominant economic force and reshaping consumption and maintaining key industries.

Much has been said about the younger generation and their head-spinning new technologies, but far from the stereotype of a youth-driven economy, the older demographic is leading spending in leisure, high-quality tourism, health, and wellness, and showing greater financial stability and free time.

According to a recent report, the Silver Generation’s economic influence is blatantly clear, with predictions estimating they will account for more than 35 per cent of Mallorca’s GDP within five years. In Mallorca, their high purchasing power is clear to see across two subgroups: active Silvers (55-65) and retirees (66-74). Both prioritise quality goods and services, causing businesses to rethink marketing strategies. Active Silvers are increasingly digital-savvy, pushing brands to adapt social media campaigns to highlight trust, closeness, and personalisation.

Tourism, the main pillar of Mallorca’s economy, thrives on silver spending. With a preference for longer stays, swankier hotels, and specially tailored experiences, they are repeat visitors with cash to splash, attracted to the island’s ideal climate and wellness selection. Health and wellness sectors also see significant growth, from specialised gyms to physiotherapy and aesthetic treatments, as Silvers are all about active ageing.

Far from ‘passive’, The ageing population had an index of 114 elderly per 100 youths in 2024, and therefore transformed the labour market. The Balearics’ activity rate for those over 55 stands at 35.28 per cent, among Spain’s highest.

The Silver Generation is redefining the economy and employment, making themselves a customer profile not to ignore.

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Bull Fighting: Barbarism Or Culture?

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A bull fighter flourishes his cape. Photo Credit Shutterstock OSCAR GONZALEZ FUENTES

There is a legislative war afoot in Spain surrounding bullfighting and its place in modern Spanish culture.

Let us explore the world of Bullfighting and whether it really could lose its protected cultural status.

Not my culture says the Spanish public

In Spain tens of thousands of bulls are killed each year for a practice that animal protection groups say is both barbaric and losing popular support. 126 municipalities across Spain, including parts of Mallorca, Catalonia and Galicia have declared themselves anti-bullfighting zones, but as the law protects the sport there is little legal recourse to stop fights from taking place.

According to an Ipsos I&O Public survey, 77 percent of Spaniards agreed that bullfights cause suffering and nearly 60 percent of those surveyed are against the sport completely. In February, 2025 the popular campaign ‘no es mi cultura’ or it is not my culture, gathered a monumental number of signatures with aim of changing the law. 715,606 Spanish Nationals signed from 40 provinces across Spain, to change the law that protects bullfighting as part of Spanish heritage. With over 200,000 signatures more than it needed to go before the Congress of Deputies, there is real hope amongst animal associations and those opposed to the fights that the law might be changed.

What does a bullfight entail?

Traditionally, the first steps in a bullfight include posturing and cape work, often completed by a matador’s assistants the movement of decorated and colourful capes are used to assess a bull’s reactions and reaction times. At which point the bull is often subjected to multiple cuts, made by men, sometimes on horse-back, called picadores.

The bulls travel to the ring, deal with the noise of a crowded stadium, the confusion of the capes and are then continually provoked and cut, at which point a matador then enters the ring and intends to kill the animal with two large harpoons straight to the heart. Unfortunately, for the animal, their suffering is often prolonged as the harpoons miss their target. A bullfight on average takes up to twenty minutes to complete. 180,000 bulls die globally each year due to the sport.

It is not just dangerous for the Bulls

There are modern examples of Matadors losing their lives; in 2016, matador Victor Barrio lost his life in the arena, he was the first matador to die in Spain in thirty years and again in 2017 Iván Fandiño passed away, after being gored by a bull.

However, scientific reports stated in an 8-year-long study covering three European countries including Spain “The mean accident rate was 9.13% and the mortality rate was 0.48%”.

What does the bullfighting industry have to say?

The figures on how much the bullfighting industry brings to the Spanish economy are in the billions. And although voices like Not My Culture are loud, according Aenet a non-profit association which represents the “most important bullfighting businessmen” the numbers of visitors attending bullfighting festivals aren’t waning considerably. In the community of Madrid the figures speak for themselves, over nearly 20 years: “more than 30 million spectators went to the bullfights in the Community of Madrid between 2007 and 2024.” They went on to explain that 2007 had the highest level of spectators, although an “important upturn took place after the pandemic: the number of spectators… in 2022 exceeded 2 million again, which means an important reactivation of the sector.”

So, have we reached a point in Spain where bullfighting might be outlawed or might we see a re-emergence of its popularity?

Discover more about Spanish news.

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