Trump threatens Spain with higher tariffs for not increasing military spending

Trump warns Spain that it may face doubled tariffs after its refusal to increase military spending to the 5% of GDP proposed by NATO.

Donald Trump and Pedro SánchezPhoto © X/@RapidResponse47 and Pedro Sánchez

The President of the United States, Donald Trump, issued a stern warning to Spain on Wednesday, following the government's refusal under Pedro Sánchez to commit to the new goal of investing 5% of GDP in defense, as proposed by the NATO for the year 2035.

During a press conference at the conclusion of the Atlantic Alliance summit in The Hague, Trump stated that he will personally negotiate a trade agreement with Spain and that he will impose double tariffs as a form of compensation.

"I'm going to negotiate directly with Spain. I'll do it myself. They are going to pay. They will pay more money this way. We're going to make them pay double. And I'm serious about that," Trump stated in a clearly confrontational tone.

The Republican not only criticized the position of the Spanish Executive but also labeled Spain as "the most hostile among NATO countries" regarding defense objectives. He further stated that the 2.1% of GDP proposed by Sánchez's government is "insufficient" and that, at a minimum, it should be raised to 3.5%, as reported by the agency EFE.

Defense and trade as a political weapon

The threat of doubling tariffs adds to Trump's well-known strategy of using foreign trade as a tool for geopolitical pressure, a tactic he employed during his administration with countries like China, Mexico, Canada, and the European Union itself.

Although trade agreements with the United States are managed collectively from Brussels, the leader has insisted on his intention to engage with Madrid on a bilateral basis, outside of EU regulations.

“Spain is a fantastic place and the people are wonderful, but they want everything to be free for them. They will have to pay us back through trade,” Trump added, emphasizing that he will not allow “the Spanish exception” to continue.

The threat comes at a delicate moment, as the 32 NATO countries have just signed the Hague Declaration, committing to increase their military spending.

Spain managed to make the text ambiguous enough not to commit to the 5% threshold, which prompted a direct reaction from Trump and dissatisfaction from the Secretary-General of the Alliance, Mark Rutte, who also considers the Spanish position "unreasonable."

The letter sent by Pedro Sánchez to Rutte last week states that the increase to 5% of GDP for defense is "unreasonable" and "counterproductive," especially at a time when the Spanish government has prioritized other strategic areas.

Sánchez maintains his plan not to invest more than 2%: "It's enough," he said according to El Mundo, and clarified that the figure of 2.1% corresponds to the calculations made by the technicians of the Armed Forces and Defense.

Frequently Asked Questions about Trump's Tariff Threats to Spain

Why does Donald Trump threaten Spain with increasing tariffs?

Trump threatens to increase tariffs on Spain due to the Spanish government, led by Pedro Sánchez, refusing to raise military spending to 5% of GDP, as proposed by NATO. Trump considers Spain's commitment to reach 2.1% insufficient and has used trade as a pressure tool to achieve his geopolitical objectives.

What is the response of the government of Spain to Trump's threats?

The President Pedro Sánchez has warned that Europe will have to defend itself if the United States does not reconsider and continues with the threats of a trade war. Sánchez has emphasized the importance of dialogue and building bridges, but he has also prepared a contingency plan to mitigate the economic impact of the tariffs.

What would an increase in tariffs by the United States mean for Spain?

An increase in tariffs by the United States could negatively affect the Spanish economy, especially the sectors most vulnerable to foreign trade. Although Spain has a more balanced trade balance with the U.S. compared to other EU countries, the rise in tariffs could impact exports and raise costs for consumers and businesses.

How has Trump used tariffs as a political tool in the past?

Trump has used tariffs as a tool of geopolitical pressure during his term, applying them to countries like China, Mexico, and Canada, as well as to the European Union. The imposition of tariffs has been a recurring tactic of his administration to seek trade and political concessions from other countries.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.