During a press conference on Wednesday at NATO’s annual summit in the Netherlands, U.S. President Donald Trump criticized Spain for its failure to meet the alliance’s defense spending goal of 5% of gross domestic product (GDP), indicating that this could complicate future trade negotiations with the southern European nation.
Trump expressed his discontent with Spain’s decision not to commit to the spending target by 2035, labeling it “terrible.” He highlighted the economic performance of Spain, remarking that while the country is doing well, it could face significant repercussions if unfavorable circumstances arise.
“They are doing very well economically, but something bad could happen that might threaten that,” he warned. “We’re currently negotiating a trade deal with Spain, and I want them to pay much more. I’m serious about this. I have a great appreciation for Spain and its people, but they’re the only country that refuses to meet these commitments,” he added.
Trump further explained that while Spain seeks to benefit from NATO’s framework without contributing its fair share, adjustments in trade will be necessary to ensure fairness. “They want a free ride, but they will have to compensate us in trade because I won’t allow that to stand,” he stated.
These remarks followed NATO’s announcement, in which member countries agreed to increase their defense spending target from the previous 2% of GDP to 5% by 2035, citing the need to unite against serious security threats, especially from Russia and ongoing terrorism concerns.
Prior to Trump’s address, Spanish Prime Minister Pedro Sanchez asserted that Spain is committed to meeting NATO’s new military capabilities targets. However, he maintained that the current defense spending of 2% of GDP is “sufficient, realistic, and compatible with the welfare state,” as reported by Reuters. Sanchez also expressed appreciation to NATO allies for “respecting Spain’s sovereignty.”
A representative from the Spanish government did not respond immediately to inquiries from Finance Newso.
— Finance Newso’s Holly Ellyatt contributed to this report.
