Trump Threats Spain: ‘Will Pay Double Tariffs’

Image Credit: U.S. President Donald Trump speaks at a press conference at the NATO summit in The Hague, Netherlands, June 25, 2025. Brian Snyder (REUTERS)

The 32 countries at the NATO summit signed the agreement to increase defense spending to 5 percent as placed by Rutte under pressure from the US. U.S. President Donald Trump commented on the summit as a “monumental success” because this decision “will relieve the U.S. of an unfair burden,” too bad, however, it was marred by Pedro Sanchez, the Spanish premier. Spain already in recent days, sending a letter to President Rutte, had declared that Madrid would not agree to the increase for military spending considering the effort to get to 2.1 percent sufficient and the 5 percent target “not feasible.”

For Trump, “it is terrible what Spain has done” because it “refuses to pay its share.” The tycoon thus threatened Madrid with charging “double the duty agreement.” From Spain, however, they are unfazed by these threats and respond to the White House chief that “negotiations on duties are done with the European Union.” From Madrid, Vice-Premier Diaz also speaks out, stressing that Spain is a sovereign state and “does not accept threats from anyone.”

Pedro Sanchez at the Hague summit signed the equal text, i.e., the target of 3.5 percent of GDP by 2035 denying the waiver Rutte allegedly granted to Spain. The text, however, is subject to interpretation. In fact, the agreement signed provides some autonomy for countries in reaching the target both on timing and modalities, a margin of interpretation that gives Madrid reason. Spain thus remains firm on its position, which was clamored for by opposition and government allies to Premier Sanchez. According to data brought by the premier, Spain is able to meet its obligations to the Atlantic Alliance with 2.1 percent of GDP. He has no intention of increasing it by sacrificing welfare and health care just to please Washington. A position that arouses the ire of other allied leaders as well as Trump.

Trump’s and Rutte’s anger at Sanchez’s obstinacy is due to the fear of a domino effect because if Spain is granted a waiver, other countries may also fall in line, as the Slovak president has already done. Spain is not bending, Sanchez remains solid on his outright refusal: formally there is no waiver but the flexibility and interpretability of the text, granted so as not to blow up the summit and split the alliance, allow Madrid to claim its victory.

Source: https://peakd.com/economy/@arraymedia/trump-threats-spain-will-pay-double-tariffs