Trump Threatens Tariffs on Spain Over NATO Spending Dispute

President Donald Trump escalated tensions with Spain on Tuesday, threatening to impose trade penalties in response to the country’s refusal to meet his proposed NATO defense spending target of 5% of GDP. Speaking at the White House, Trump said he was “very unhappy with Spain,” describing its stance as a sign of disrespect toward the military alliance.

Trump, who has repeatedly pressed NATO members to shoulder more of the alliance’s defense burden, suggested he could use tariffs as leverage. “I was thinking of giving them trade punishment through tariffs because of what they did, and I think I may do that,” he told reporters.

The remarks came days after Trump said NATO should consider removing Spain from the alliance if it continues to resist higher defense spending. His comments have sparked unease among U.S. allies as he doubles down on his demand that members increase military budgets amid ongoing tensions with Russia.

Spanish officials pushed back against Trump’s criticism. Foreign Minister José Manuel Albares reaffirmed Madrid’s commitment to NATO, saying Spain “has no doubt about its dedication to transatlantic security.” He highlighted that more than 3,000 Spanish troops are currently deployed under NATO operations in Europe and the Middle East.

Spain is the only member of the 32-nation alliance that has not agreed to the 5% target. Prime Minister Pedro Sánchez has maintained that raising spending above 2.1% of GDP is neither necessary nor sustainable, emphasizing that Spain’s active military contributions compensate for its lower defense budget.

Madrid, which joined NATO in 1982, has sought to balance alliance commitments with domestic economic realities. While Trump’s threat of tariffs marks a new flashpoint in transatlantic relations, analysts say Spain is unlikely to bow to pressure for now. As NATO debates how best to strengthen its defense posture in the face of Russia’s aggression, the dispute underscores the challenges of maintaining unity among allies under shifting U.S. leadership priorities.