Trump Links Spain’s NATO Spending to Trade Consequences
During a recent NATO summit, former U.S. President Donald Trump issued a stark warning to Spain, suggesting the southern European nation’s reluctance to meet a new, ambitious defense spending target could result in significantly tougher terms in future trade negotiations with the United States.
Speaking at a news conference following discussions among NATO allies, Trump specifically called out Spain for not committing to the newly proposed goal of allocating 5% of its Gross Domestic Product (GDP) to defense spending by 2035. This target represents a substantial increase from the alliance’s long-standing aim for members to spend 2% of GDP on defense, a goal many nations, including Spain, have historically struggled to meet.
NATO Allies Agree on Ambitious New Target
The push for higher defense spending was a central theme of the summit, largely driven by Trump’s insistence that allies increase their contributions to the collective security effort. Alliance members ultimately agreed on the new aspiration to reach 5% of GDP for defense by 2035, a figure reportedly intended to comprise 3.5% for core defense expenditures (like troops and equipment) and 1.5% for broader security-related investments. This commitment was framed as a necessary response to evolving security threats, particularly the long-term challenge posed by Russia to Euro-Atlantic security.
Trump hailed the new 5% commitment as a significant achievement, asserting it would alleviate the disproportionate burden previously carried by the United States.
Spain’s Stance: Capabilities Over Strict Percentage
Spain’s position, articulated by Prime Minister Pedro Sanchez, struck a different note. While Sanchez affirmed Spain’s commitment to meeting NATO’s overall capabilities targets – measures designed to ensure members are equipped to defend themselves and the alliance – he indicated that Madrid considered its current defense spending level “sufficient, realistic and compatible with the welfare state.”
Prime Minister Sanchez reportedly stated Spain aims to reach the previous 2% of GDP defense spending target this year, acknowledging that it spent around 1.2% last year, making it one of the alliance’s lowest contributors. He expressed gratitude for allies’ respect for Spain’s sovereignty in determining its defense contributions.
Trump’s Trade Deal Threat
It was Spain’s apparent refusal to explicitly commit to the new 5% target by 2035 that drew President Trump’s direct criticism. He characterized Spain’s stance as “terrible” and accused the country of seeking a “free ride” within the alliance.
He then directly linked this defense spending disagreement to ongoing trade discussions. “We’re negotiating with Spain on a trade deal,” Trump stated, “and we’re going to make them pay twice as much — and I’m actually serious about that.” He emphasized that this was a consequence of Spain being, in his view, the “only country out of all of the countries that refuses to pay” the higher target.
The EU Complication: A Hurdle for Bilateral Threats
However, enforcing such a specific bilateral trade penalty against Spain faces a significant obstacle rooted in international trade law and the structure of the European Union. As a member state of the EU, Spain does not negotiate its trade deals directly with the United States. Instead, trade negotiations with third countries are conducted centrally by the European Commission on behalf of all 27 EU member nations.
This means that any U.S.-Spain trade agreement, or punitive measures linked to trade, would likely need to be part of a broader US-EU trade framework. Implementing a penalty specifically targeting Spain for its NATO spending through a direct bilateral deal appears legally challenging, potentially requiring the inclusion of unusual language within a wider EU-US pact. This structure makes a direct, nation-to-nation trade reprisal over an issue like NATO contributions considerably more complex than a bilateral negotiation might suggest.
