Trump's Trade Threats Loom Over Spain's Defense Spending

President Donald Trump has threatened Spain with trade tariffs due to its refusal to increase defense spending to 5% of GDP, which he calls disrespectful to NATO. Spain maintains that their contribution to NATO missions compensates for the spending shortfall.


Devdiscourse News Desk | Updated: 15-10-2025 00:37 IST | Created: 15-10-2025 00:37 IST
Trump's Trade Threats Loom Over Spain's Defense Spending

President Donald Trump has escalated tensions with Spain by threatening trade penalties, including tariffs, over its defense spending decisions. Trump has expressed dissatisfaction with Spain's refusal to increase its defense budget to 5% of GDP, a commitment agreed upon by NATO members.

This move by Trump alleges disrespect towards NATO, as Spain remains the only nation within the 32-country alliance that hasn't committed to the 5% target. Trump, speaking from the White House, has hinted at imposing trade penalties to address this shortfall.

Nonetheless, Spanish Prime Minister Pedro Sánchez managed to secure a temporary exemption, committing to a spending level of 2.1%, which he deems "sufficient and realistic." Madrid argues that its robust troop deployments in NATO missions should mitigate the reduced financial contribution.

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