President Donald Trump has issued a warning that Spain could face tougher terms in future trade agreements with the United States, following Spain’s decision not to adopt NATO’s newly elevated defence spending target.
During the recent NATO summit held in the Netherlands, Trump singled out Spain for refusing to commit to raising its defence expenditure to 5% of gross domestic product by 2035, a threshold agreed upon by other alliance members in response to escalating security threats across Europe.
At the press conference, Trump was direct in his criticism of Spain’s stance, stating that the country’s robust economic performance could be at risk if it continues to resist the new NATO standard.
“You know they are doing very well. The economy is [doing] very well. And that economy could be blown right out of the water with something bad happening,” he said.
“You know what we’re going to do? We’re negotiating with Spain on a trade deal and we’re going to make them pay twice as much — and I’m actually serious about that. I like Spain … it’s a great place and they are great people, but Spain is the only country out of all of the countries that refuses to pay,” Trump added.
“So, they want a little bit of a free ride, but they will have to pay it back to us on trade because I am not going to let that happen. It’s unfair.”
NATO’s move to increase its defence spending target from 2% to 5% of GDP by 2035 displays a major change in the alliance’s strategy for collective security. This move was prompted by ongoing concerns over Russia’s military activities and the persistent risk of terrorism, with NATO leaders emphasising the need for greater unity and investment in defence capabilities. The alliance’s joint declaration showed a shared commitment to confronting these challenges together.
In response to the new targets, Spanish Prime Minister Pedro Sánchez indicated that Spain would comply with NATO’s updated capability requirements, which involve improving both national and alliance-wide defence measures.
However, Sánchez maintained that Spain’s current defence spending level—set at 2% of GDP—is “sufficient, realistic and compatible with the welfare state,” according to Reuters. He also expressed gratitude to other NATO members for “respecting Spain’s sovereignty.”
The dispute over defence spending has become a recurring issue within NATO, particularly as the international security environment grows more complex. The U.S. has consistently urged European allies to increase their financial contributions to the alliance, arguing that a more equitable distribution of defence costs is essential for long-term stability.
Experts suggest that the outcome of these discussions could have far-reaching consequences, not only for Spain’s relationship with the United States but also for the cohesion and effectiveness of NATO as a whole.