Trump threatens Spain with tariffs over military spending
At the NATO summit in The Hague, Donald Trump threatened to impose tariffs on Spain for not committing to the new military spending target of 5% of GDP.
ByMas Latino Editorial
PublishedJune 25, 2025
Former President and current Republican candidate Donald Trump issued a stern warning against Spain during the NATO summit held in the Netherlands. In statements that quickly sparked international backlash, Trump harshly criticized the Spanish government for failing to commit to the new military spending target agreed upon by the Alliance: 5% of GDP allocated to defense by 2035.
“Spain is taking advantage of the United States and the countries that are paying. When I sit down to negotiate, they're going to pay double. No matter what,” Trump told international media. “I'll do it myself.”
VIDEO | US President Donald Trump has criticized Spain's refusal to invest 5% of its GDP in defense, and has stated that he will negotiate a trade agreement "directly" with Madrid and make the country "pay double" to compensate for this situation. pic.twitter.com/P4Rx0HXBg2
The statements came hours after NATO adopted a roadmap that raises expectations for military investment: 3.5% of GDP for operational defense and an additional 1.5% for infrastructure and cybersecurity. Spain, however, only committed to reaching 2.1%, a figure the government considers "realistic" and "consistent with current budgetary capabilities."
What do tariffs mean?
Although the European Union's trade policies are managed from Brussels, Trump insisted he will take direct action against Spain. He said he is considering applying targeted tariffs to strategic sectors, such as the automotive industry and agricultural products, in retaliation for what he calls its "insufficient contribution" to collective defense.
This stance is reminiscent of his trade strategy during his presidency, when he imposed tariffs on products from China, Canada, the EU, and Mexico as a tool of geopolitical pressure.
From Madrid, President Pedro Sánchez avoided direct confrontations, but reaffirmed Spain's commitment to the Atlantic Alliance:
"Spain fully trusts NATO. We have strengthened our presence in strategic missions and will gradually increase military spending without compromising our welfare state," he declared.
The European Commission also warned that any unilateral attempt to impose trade sanctions on a Member State would be met with proportional measures.
What's at stake?
Trump's pressure puts several key sectors of the Spanish economy at risk:
Exports of vehicles and parts to the US, one of the most important markets outside the EU.
Agricultural products, especially olive oil, wine and fruit, which have been affected in the past by trade disputes.
Tourism and investments, which could suffer if bilateral relations deteriorate.
The coming weeks will determine the course of this new confrontation between allies, in a context where collective security is intertwined with commercial diplomacy.
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