Trump escalates Nato spending clash with Spain, threatens double tariffs

US President Donald Trump has sharply criticized Spain for refusing to meet Nato's 5% defence spending target, threatening to double tariffs on the country in retaliation. The remarks were made following the Nato summit in the Netherlands, where Trump promised to make Spain pay “twice as much” if it fails to comply with the pledge.

Tariff threats amid Nato tensions

Addressing reporters, Trump accused Spain of being the only Nato member unwilling to increase defence spending to 5% of GDP, a goal set for 2035. He signaled his intention to negotiate a bilateral trade deal with Madrid, warning that the US could impose steep tariffs if Spain continues to resist.

“We’re negotiating with Spain so that they pay double,” Trump said. “It’s the only country refusing to pay. If they won’t meet their obligations, we’ll make sure they repay us through trade.”

Trump also alluded to Spain's strong economic recovery since the pandemic, suggesting that tariff measures could reverse its recent progress. “Their economy is doing very well, but that could change if tariffs are introduced,” he added.

Nato's spending divide

At the summit, Nato leaders reaffirmed their commitment to the 5% defence spending target. However, Spain’s Prime Minister Pedro Sánchez has been vocal in his opposition, arguing that even with lower spending, Spain can meet Nato’s military objectives. He cited the country’s geographical advantages, such as its distance from Russia and natural defences, as factors reducing the need for higher defence budgets.

Sánchez also emphasized the importance of prioritizing social welfare over military expenditures, a stance consistent with his government’s left-leaning policies. Spain, which recognized the Palestinian state last year, has taken a critical stance on international conflicts, further distancing itself from Trump’s aggressive rhetoric.

Domestic and international maneuvering

Sánchez’s refusal to meet the spending target has drawn both domestic and international attention. Reports suggest that he had sought an exemption from the 5% goal during discussions with Nato Secretary General Mark Rutte, though Rutte denied any such agreement.

Domestically, Sánchez faces mounting political challenges, including corruption scandals that have embroiled his government. Analysts suggest the Prime Minister may welcome the Nato dispute as a distraction from his domestic woes, using the clash to bolster his standing among left-wing allies who oppose increased defence spending.

The EU's role in negotiations

Spain’s Economy Minister Carlos Cuerpo has pushed back against Trump’s threats, noting that as a member of the European Union, Spain cannot be targeted individually for tariffs. Trade negotiations with the US, he said, would be handled at the EU level, not bilaterally.

Despite Trump’s rhetoric, it remains uncertain whether the US can legally impose specific tariffs on Spain. For now, the clash underscores growing tensions between the US and its European allies over defence spending, with Spain finding itself at the center of the controversy.