The European Union and Spain Reject Trump’s Threats of Tariff Hikes on Madrid

The European Commission and the Spanish government have today rejected the latest threat from U.S. President Donald Trump regarding the imposition of higher tariffs on Madrid due to its non-compliance with his proposed defense spending target for NATO.

Trump voiced his frustration, stating that Spain is the only country that has rejected the new spending goal set at five percent of its GDP. He mentioned that he is considering imposing penalties on the Mediterranean nation.

Previously, he indicated that he would ensure Spain “pays three times as much” under trade negotiations.

A spokesperson for the Commission, Olaf Gjel, stated at a press briefing that trade policy falls under Brussels’ jurisdiction and that the Commission “will respond appropriately, as we always do, to any actions taken against one or more member states.”

Gjel emphasized that the trade agreement between the European Union and the United States, signed in July, serves as the proper framework for addressing any issues.

The Spanish Ministry of Economy and Trade released a statement underscoring that the discussion about defense spending is not merely about increasing expenditure but is connected to responding to genuine threats and playing its part in developing the necessary capabilities for collective defense within NATO.

Spain has increased its nominal defense spending from 0.98 percent of GDP in 2017 to two percent this year, translating to approximately €32.7 billion ($38 billion).

Defense Minister Margarita Robles clarified that NATO member states did not discuss the five percent target during their meeting today, as the focus was on the current situation in Ukraine.

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