Trump Threatens Trade Penalties After Spain Refuses NATO Defense Spending Hike

by Worthy News Washington D.C. Bureau Staff

(Worthy News) – President Donald Trump delivered a stern warning to Spain on Wednesday, accusing the nation of shirking its defense obligations under NATO and threatening to double tariffs in retaliation.

At the annual NATO summit in The Hague, Trump celebrated what he called a “historic achievement” as member nations agreed—at his urging—to raise defense spending to 5% of GDP by 2035. All members except Spain signed on. “It’s terrible what they’ve done,” Trump told reporters when asked by a Spanish journalist about Madrid’s refusal. “They want a free ride.”

Spain, which spent only 1.28% of its GDP on defense in 2024, the lowest among NATO members, says it will raise spending to just 2.1%. Prime Minister Pedro Sánchez has insisted this is sufficient to meet NATO requirements, while still preserving domestic priorities such as pensions and green energy.

But Trump dismissed the rationale and warned of consequences. “We’re negotiating with Spain on a trade deal, and we’re going to make them pay twice as much,” he said. “Their economy is doing very well, but it could be blown right out of the water with something bad happening.”

Sánchez, already facing domestic turbulence from multiple corruption scandals and a judicial investigation involving his wife, reiterated Wednesday that he would remain in office through the 2027 general elections. Spanish police, meanwhile, raided the offices of the Socialist Party to seize emails linked to a former aide under investigation.

Spain signed the Hague Summit Declaration, which outlines the 5% target—including 3.5% for conventional defense and 1.5% for cybersecurity and infrastructure—but has insisted it can meet capability goals without hitting the spending threshold.

Economy Minister Carlos Cuerpo claimed that Spain’s strategy reflects “a different estimation” of what is needed to contribute meaningfully to NATO’s defense readiness.

Trump, however, rejected Spain’s logic. “They’re the only country refusing. It doesn’t make sense,” he said, vowing to personally negotiate directly with Spanish officials to “make them pay.”

Trade Retaliation Looms

In April, the Trump administration imposed 20% tariffs on imports from Spain and the EU, which were later reduced to 10% during ongoing negotiations. Trump now says Spain’s refusal to meet the 5% defense target could trigger a return to steeper tariffs.

“This isn’t personal,” Trump said. “I love Spain. But if they don’t pay on defense, they’ll pay on trade.”

A New Era in NATO?

With the new 5% target in place and mounting pressure on member states, Trump’s aggressive diplomacy may reshape the future of NATO’s collective defense. But the standoff with Spain—and the domestic instability within Sánchez’s government—underscores the fragility of unity in the face of rising global threats.

“The message is simple,” Trump concluded. “You either pay your fair share—or you pay another way.”

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