At the 2025 NATO summit in The Hague, U.S. President Donald Trump issued a direct warning to Spain, vowing to personally impose trade penalties unless Madrid boosts its defense spending. The threat marks a sharp escalation in Trump’s aggressive approach to alliance politics—mixing national security demands with economic retaliation.
🛑 “I’ll Do It Myself” – Trump’s Tariff Ultimatum
Speaking at a press conference alongside NATO leaders, Trump slammed Spain for failing to meet the alliance’s newly adopted 5% GDP defense spending goal by 2035. Spain currently spends just over 2.1%, and Prime Minister Pedro Sánchez has defended that level as “sufficient and responsible.”
But Trump wasn’t buying it. “Spain wants to stay at 2%. They think they can get away with it,” he said. “We’re negotiating a trade deal with Spain, and if they don’t step up on defense, they’re going to pay for it—literally. I’m going to do it myself.” The president suggested that he would unilaterally impose higher tariffs on Spanish goods unless Spain raises its military budget.
🧭 Linking Defense to Trade: A Trump Signature
This approach—tying national security obligations to trade consequences—is a hallmark of Trump’s foreign policy philosophy. He has long accused NATO allies of “free-riding” on U.S. military protection while under-investing in their own defense. With this latest move, Trump is using America’s trade leverage to demand compliance.
Critics argue the strategy risks undermining the NATO alliance’s unity. The European Union typically negotiates trade deals collectively, and Trump’s threat to go after Spain directly could strain relations not just with Madrid, but with Brussels.
🧨 Spain Pushes Back
In response, Prime Minister Sánchez reaffirmed Spain’s commitment to NATO but rejected the idea that defense budgets should come at the cost of domestic welfare. “We believe in strategic autonomy and social responsibility,” Sánchez said. “Security isn’t just tanks and jets—it’s education, healthcare, and infrastructure, too.”
Spanish officials also denied any special side agreement with NATO allowing them to remain below the 5% threshold, pushing back against claims that they were violating alliance expectations.
🌍 Global Reactions and Risks
The tension between Trump and Spain comes amid broader efforts to strengthen NATO’s deterrence capabilities amid threats from Russia and global instability. The 5% defense spending pledge, championed by Trump, was adopted with mixed enthusiasm by European leaders. France and Germany endorsed the goal but emphasized flexibility in how countries meet it.
Meanwhile, economic experts warn that unilateral tariffs against Spain could violate World Trade Organization rules and provoke EU retaliation. A European Commission spokesperson stated, “Trade is an EU competence. Any attempt to penalize a member state through direct U.S. action would be challenged appropriately.”
🔍 What Comes Next
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Will Trump follow through on his threat?
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Can Spain negotiate a compromise on defense spending?
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Will the EU intervene to protect its member from U.S. trade pressure?
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Could this dispute trigger broader fractures within NATO?
