President Trump slammed Spain at the NATO summit for refusing to meet a new defense spending target and warned the country could face steep U.S. tariffs if it doesn’t step up. He said Spain may pay “twice as much” in a looming trade deal, signaling rising tensions between allies.
Key Facts:
- At the NATO summit in The Hague, Trump criticized Spain for being the only country refusing to meet the new 5% of GDP defense spending target.
- Trump suggested Spain could be penalized with double tariffs in U.S. trade negotiations, causing Spanish markets to dip further.
- Spain’s government dismissed the threat, pointing to the EU’s role in handling all trade deals on behalf of its members.
- Spanish Prime Minister Pedro Sanchez pledged to meet NATO’s military commitments but not the full 5% budget level.
- The EU is racing to finalize a deal with Washington before July 9 to avoid sweeping U.S. tariffs affecting 70% of its exports.
The Rest of The Story:
President Trump didn’t mince words during the NATO summit. Singling out Spain, he declared, “You’re the only country that is not paying,” and floated the idea of doubling tariffs in ongoing trade talks. Spain’s main stock index tumbled after the remarks, reflecting investor unease.
Spanish leaders tried to downplay the threat. Economy Minister Carlos Cuerpo emphasized that the EU — not Spain alone — manages trade negotiations. Meanwhile, Prime Minister Pedro Sanchez argued that Spain will boost defense spending to 2.1% but won’t go further. EU officials are trying to seal a broader trade agreement before U.S. tariffs on European exports spike to 50% in early July.
He ASSAULTED federal law enforcement with a WEED WHACKER. Perhaps the mainstream media would like our officers to stand there and be mowed down instead of defending themselves?
What a completely slanted portrayal of what actually happened. https://t.co/Zf10PgjEdY pic.twitter.com/dRYnLuPK8o
— Homeland Security (@DHSgov) June 23, 2025
Commentary:
President Trump just laid down the gauntlet—and for good reason.
NATO’s defense framework only works if everyone pays their fair share. Spain’s refusal to hit the 5% mark isn’t just freeloading—it’s a signal that it wants the security benefits of the alliance without footing the bill. That’s not sustainable.
Trump’s warning wasn’t just bluster. It was a negotiation tactic grounded in leverage. Spain depends heavily on trade with the U.S., and Trump knows it. So do Spanish investors—the market dipped the moment his words hit the tape.
Critics will say this is Trump being antagonistic toward allies. But what’s the alternative? Shrug off chronic underfunding while American taxpayers cover the gap? That’s exactly what got NATO into this mess to begin with.
Sanchez’s pledge to meet troop and weapons targets without raising the budget is classic political doublespeak. How do you meet new targets without new money? You don’t. You cut corners—or rely on others to pick up the slack.
The EU’s role here is also worth watching. For all its centralization, it can’t protect member states from the consequences of their own choices. Trump’s remarks signal that bilateral pressure is back on the table, EU bureaucracy or not.
Trump’s approach might bruise egos in Brussels and Madrid, but it’s grounded in basic arithmetic and strategic clarity. If allies won’t step up voluntarily, then tariffs will do the talking.
Don’t forget: this isn’t just about Spain. It’s a warning shot to every NATO member dragging its feet. The next few weeks could determine whether this alliance modernizes—or fractures under the weight of its own contradictions.
The Bottom Line:
Trump’s broadside against Spain signals a return to hardball diplomacy on both defense and trade. NATO’s credibility is on the line, and so is Europe’s access to U.S. markets. If allies don’t pay up, they may pay in other ways—at the border, at the port, or at the ballot box.
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