PIMEM, the Mallorcan federation of small to medium-sized businesses has expressed concern about how US tariffs will impact the island's main tourism markets.
In a statement on Thursday, the federation said that the tariffs represent "a direct threat to thousands of European companies" and was therefore worried about the medium-term impact on tourists from Mallorca's supplier markets. The federation also mentioned the US in this regard.
The statement went on: "The governments of both Spain and the Balearic Islands must vigorously defend the most exposed sectors, however small they may be in the case of our islands." But PIMEM also voiced concern at the "risk of an escalation that could lead to an open trade war".
The federation applauded the preparation of a state support plan for affected sectors, the activation of mechanisms to prevent job losses, and the promotion of investment and productivity aid to strengthen business competitiveness, although it emphasised the need to act quickly.
In the case of the Balearics, the US accounts for just two per cent of exports. Nevertheless, President Marga Prohens said on Thursday that the tariffs are "an attack on our primary sector, our industry, and the European economy". Olive oil, wine, cheese and leather goods are the main exports.
She expressed her particular support for farmers and the footwear industry, urging the Spanish Government and the European Commission to provide a "proportional and coordinated response" in collaboration with regional governments.
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