EU and Spain reject Trump tariff threats over NATO spending, warning that U.S. trade pressure could spark a major transatlantic dispute.
The European Union and Spain have strongly rejected Trump tariff threats following the U.S. President’s warning of punitive trade actions over Spain’s refusal to meet NATO’s new defence spending target of 5% of GDP. The move has triggered growing fears of a Trump tariff dispute that could shake transatlantic relations.
At a White House briefing, President Donald Trump said he was “very unhappy with Spain” for being the only NATO member that didn’t agree to the 5% target. He warned that Madrid could face Trump tariff measures or “pay twice as much” in trade negotiations if it didn’t comply.
EU Backs Spain Against Trump Tariff Threats
The European Commission swiftly defended Spain against Trump tariff threats, emphasizing that any such action would breach the EU-US trade agreement signed in July.
Commission spokesperson Olof Gill stated, “We will respond appropriately to any measures taken against one or more of our member states,” reinforcing Europe’s collective resistance to unilateral Trump tariff moves.
Spain’s Deputy Prime Minister Yolanda Diaz condemned the warnings, arguing that Trump tariff threats would “hurt American consumers more than Spain,” since Spain runs a trade deficit with the U.S. “In Spain, the Spanish are in charge; we are not their protectorate,” Diaz asserted during a parliamentary debate.
Spain Defends Its NATO Record Amid Trump Tariff Dispute
The standoff stems from NATO’s June 2025 decision to raise defence spending goals to 5% of GDP by 2035. Spain negotiated an exemption, saying the demand was “unreasonable and counterproductive.” Prime Minister Pedro Sanchez warned that meeting the target would force cuts to essential social spending, insisting Spain already contributes significantly to NATO missions.
Spain has raised its defence budget from 0.98% of GDP in 2017 to 2% this year — about €32.7 billion. Despite being below the new NATO goal, Spain maintains major troop deployments in Latvia, Romania, Bulgaria, and Turkey, showcasing its commitment to collective defence. Analysts say this undercuts the logic behind Trump tariff threats.
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Foreign Minister Reaffirms Spain’s NATO Commitment
While visiting China, Foreign Minister Jose Manuel Albares reiterated that Spain remains “a reliable ally” within NATO, despite Trump tariff pressure. He added that Spain’s role in European security “is beyond question,” urging Washington to resolve the dispute through dialogue, not trade tariffs.
Analysts Warn of Broader Impact of Trump Tariff Threats
Experts describe the Trump tariff dispute as a flashpoint intertwining defence spending, trade politics, and global strategy. They caution that prolonged tension over Trump tariff threats could damage NATO unity and destabilize transatlantic markets if no diplomatic solution emerges.
The next few months will test whether Washington and Brussels can cool the rhetoric. For now, both sides appear determined — with the EU and Spain rejecting Trump tariff threats in defence of sovereignty and shared European interests.