Overview
- President Donald Trump said he is considering punitive tariffs because Spain refused to adopt NATO’s new 5% of GDP defense-spending objective.
- European Commission officials reiterated that trade policy is an EU competence and warned the bloc would respond collectively to any U.S. action.
- Spain argues it is a reliable ally, citing about 3,000 troops deployed under NATO command and a rapid rise toward roughly 2% of GDP on defense this year after about 1.3% in 2024.
- NATO leaders set a 5% framework in June with a 2035 timeline, yet Spain remains the only ally not to sign on as ministers met in Brussels and the secretary-general downplayed the dispute.
- Analysts note Washington could try targeted duties against Spanish exports, pointing to the 2018 U.S. tariffs on Spanish black table olives as precedent.