President Trump lays down the law at NATO summit, warning Spain will pay “twice as much” in trade deals after refusing to meet defense spending commitments that every other alliance member accepted.
Key Takeaways
- Spain is the only NATO country refusing to commit to the new 5% of GDP defense spending target by 2035, citing welfare state concerns.
- President Trump threatened targeted trade penalties against Spain, stating they’ll “pay twice as much” in future trade negotiations.
- Trump indicated he will bypass traditional EU trade protocols to negotiate directly with Spain, intensifying pressure as a July 9 trade deal deadline approaches.
- NATO members, particularly those bordering Russia, expressed strong disapproval of Spain’s refusal to increase defense spending.
- The historic NATO agreement includes a commitment from all other members to invest 5% of GDP on core defense by 2035.
Trump Confronts Spain’s NATO Defiance
In a decisive stance at the recent NATO summit, President Trump called out Spain as the sole NATO member refusing to commit to the alliance’s new defense spending target. While 31 other NATO countries agreed to allocate 5% of their GDP to defense spending by 2035, Spain’s resistance prompted a swift and firm response from the President. Spain’s decision breaks ranks with major European powers including Britain, France, Germany, and the Netherlands, who all committed to the strengthened defense posture aimed at countering growing threats, particularly from Russia.
The Spanish government claimed the 5% target would strain their welfare state, an excuse that found no sympathy from President Trump or other NATO members. Trump’s response was unequivocal, threatening targeted economic consequences for Spain’s refusal to properly fund collective defense while still enjoying the benefits of NATO protection. This firm stance aligns with Trump’s long-standing position that all alliance members must contribute their fair share to mutual security arrangements.
President Donald Trump assailed Spain for refusing to agree to new defense spending thresholds adopted by NATO and suggested the country could be penalized by facing tariffs twice as high from the US. https://t.co/PjWFwsVtJS
— Bloomberg (@business) June 25, 2025
Direct Trade Consequences Promised
President Trump made it clear that Spain’s refusal to meet NATO commitments would have immediate economic repercussions. “I told them today, ‘You’re not going to pay, you’re going to pay twice as much when we do a trade deal,'” Trump stated, emphasizing his willingness to bypass European Union trade protocols to deal directly with Spain. This approach signals a significant shift in how the administration plans to handle allies who don’t meet their defense obligations, creating a direct link between security commitments and trade benefits.
“something that no one really thought possible. And they said, ‘You did it, sir. You did it.’ Well, I don’t know if I did it, but I think I did,” said President Donald Trump.
The President’s tough stance comes as a July 9 deadline looms for the EU to agree to a trade deal with the United States. Without an agreement, tariffs on EU imports could surge to 50%, with Spain now potentially facing even steeper consequences. Trump’s approach represents a broader strategy of using America’s economic leverage to ensure allies contribute appropriately to mutual defense arrangements rather than relying disproportionately on American taxpayers and military resources.
Will Make Spain "Pay": Trump Threatens Tariffs Over NATO Defense Spending Holdout https://t.co/WKJMPGMIjP
— zerohedge (@zerohedge) June 25, 2025
NATO’s Historic Defense Spending Agreement
The summit marked a transformational moment for NATO, with the alliance agreeing to the most significant increase in defense spending commitments in its history. “Allies commit to invest 5% of GDP annually on core defense requirements as well as defense- and security-related spending by 2035 to ensure our individual and collective obligations,” NATO leaders stated in their joint communiqué. This agreement represents a major victory for President Trump’s persistent pressure on NATO members to increase their defense contributions.
“We stand by Ukraine in its pursuit of peace and will continue to support Ukraine on its irreversible path to NATO membership,” said Mark Rutte.
Countries bordering Russia, including Poland and the Baltic states, have been particularly vocal in their commitment to the 5% goal, recognizing the immediate threat posed by Russian aggression. Poland’s Deputy Prime Minister joined other officials in condemning Spain’s refusal to commit to proper defense spending. The agreement includes a secondary target of 1.5% GDP for broader defense-related spending, such as infrastructure improvements and cyber defense, creating a comprehensive approach to securing the alliance against modern threats.
A Renewed NATO Under Trump’s Leadership
President Trump expressed satisfaction with the progress made at the summit, noting that his view of NATO had evolved positively as more countries commit to fair burden-sharing. The United States already meets or comes close to the 5% GDP defense spending benchmark, while European allies and Canada have significantly increased their defense budgets in recent years. This shift toward more equitable contributions has strengthened the alliance and addressed long-standing concerns about European countries taking advantage of American defense spending.
The summit reaffirmed NATO’s “ironclad commitment” to collective defense, emphasizing that an attack on one member is an attack on all. While Hungary’s Prime Minister Viktor Orbán maintains that Russia doesn’t represent a significant threat, the majority of NATO members recognized the long-term challenge posed by Russian aggression. The planned 2029 review of spending will assess progress toward the 5% goal and evaluate the evolving security threat landscape, ensuring the alliance remains adaptable to changing global conditions.
