The Spanish government, led by Prime Minister Pedro Sanchez, is not concerned about threats from U.S. President Donald Trump to raise tariffs on Spanish exports. This followed Sanchez’s refusal to increase defense spending to 5% of GDP. This was reported by the Financial Times.
According to the publication, Pedro Sanchez may be deliberately provoking Trump, as he does not view the threat of tariff hikes as serious. Any new U.S. tariffs on goods that Spain produces in large quantities, such as iron, aluminum, and automobiles, would also affect the other 26 EU member states, including those that have already agreed to Trump’s 5% NATO spending target.
The conflict between Sanchez and the Trump administration is not limited to defense issues. The Spanish prime minister has also drawn Trump’s ire by criticizing Israel’s actions in Gaza and opposing major Silicon Valley tech companies. Additionally, Sanchez maintains close ties with China, which led Trump to label Spain a “BRICS country.”
The Financial Times notes that Trump’s public provocations may be an attempt by Sanchez to divert attention from a corruption scandal involving his party. On June 20, it was revealed that Spanish police are investigating a corruption case linked to top Socialist Workers’ Party (PSOE) official Santos Cerdan and former Transport Minister Jose Luis Abalos.
Despite the scandal and calls for resignation, Prime Minister Sanchez has confirmed his intention to run for a new term in 2027 after completing his current one. He rejects the possibility of government resignation and early elections.
On June 25, during the NATO summit in The Hague, Trump stated he would make Spain “pay” for refusing to raise defense spending to 5% of GDP. The U.S. president emphasized that America would increase tariffs on imports from Spain if the country does not meet the defense spending requirements.
“Spain is the only country refusing to pay (for defense – ed.). So I will make you pay for trade. I think we will double the tariffs on Spain. We will make you pay.”
– Donald Trump
At the NATO summit on June 24 and 25, a decision was made to increase defense spending to 5% of GDP by 2035. Alliance countries plan to spend 3.5% of GDP on defense needs and 1.5% of GDP on protecting critical infrastructure, network defense, civil society readiness, innovation, and development of the defense-industrial base.